Welcome to Day 64 of the 90-Day Comeback Challenge. Today we’re talking about how to build your executive team: What functions and roles does a company need? How early should you start? Find out all my experiences and tips & tricks in this article.
Why an Executive Team is So Important
As your business grows, you will reach a point where you can no longer manage everything alone or with a small team. A well-structured executive team is essential. It helps you manage different areas of your business efficiently and make the right decisions.
The Structure of Your Executive Team
In the beginning, you might have only a few employees who do a bit of everything. But over time, you should create specialized roles. Here are some of the most important positions to consider:
- CEO (Chief Executive Officer)
- As the CEO, you are the face and visionary of your company. You make the final decisions and are responsible for the overall strategy.
- As the CEO, you are the face and visionary of your company. You make the final decisions and are responsible for the overall strategy.
- COO (Chief Operating Officer)
- The COO handles the day-to-day operations and ensures everything runs smoothly. This role can vary depending on the size and structure of your company. A COO is especially important if you, as the CEO, are more of a visionary and need someone to manage the details.
- The COO handles the day-to-day operations and ensures everything runs smoothly. This role can vary depending on the size and structure of your company. A COO is especially important if you, as the CEO, are more of a visionary and need someone to manage the details.
- CFO (Chief Financial Officer)
- The CFO is responsible for finances, including budgeting, accounting, and financial reporting. A good CFO helps keep your business financially stable and identifies growth opportunities.
- The CFO is responsible for finances, including budgeting, accounting, and financial reporting. A good CFO helps keep your business financially stable and identifies growth opportunities.
- CTO (Chief Technology Officer)
- The CTO is in charge of the technical side of your company. They manage the development and implementation of technological solutions that drive your business forward.
- The CTO is in charge of the technical side of your company. They manage the development and implementation of technological solutions that drive your business forward.
- CMO (Chief Marketing Officer)
- The CMO leads the marketing strategy and ensures your company is visible and attracts new customers. This includes sales and business development.
Internal Promotion vs. External Hiring
A crucial decision when staffing your executive team is whether to promote internal employees or hire external experts. Internal promotions can be beneficial because these employees are already familiar with the company culture. However, external hires can bring fresh perspectives and new ideas. It’s important to find the right balance and ensure that new executives fit your company culture.
The Right Size of Your Executive Team
There is no one-size-fits-all for an executive team. However, you should make sure your team does not become too large, as this can impact efficiency. A team of 7 to 12 people reporting directly to you is often a good size.
Growth of Corporate Functions
Be cautious when expanding corporate functions such as HR, Legal, and Finance. These areas tend to grow quickly without directly contributing to revenue. Keep these departments as small as possible and rely on external support if necessary.
Conclusion
Building a successful executive team is an ongoing process that requires careful thought and strategic planning. Take the time to find the right people and create a structure that best supports your business. If you have any questions or need further tips, let me know. See you tomorrow for Day 65!
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Your Julian
Entrepreneur / Investor / Athlete / Father
