The CEO was fired.
Or rather, promoted/moved to another position.
He is the biggest shareholder of the firm, and still, he was moved. Another member of the management team is stepping into the CEO role.
Not because there is a power struggle. Not because of ego or ambition. Simply because they both agreed that the other person is the right person for that seat.
Before you jump to the wrong conclusion, the now former CEO is not incapable. He is the one with the vision. He got the business off the ground and the initial traction. But he also knows what his superpowers are and, more importantly, what they are not.
The new CEO has no ego-driven ambition and doesn’t want or care about the title, which ironically makes him the perfect person for the business in their current state.
This story illustrates a bigger truth about ego and growing businesses.
Ego drives early growth, but blocks scaling
In the early stages (in the 6-figure space), the ego, vision, and “I can do everything” attitude of the owner is often necessary and the driving force to get the business from 0 to 1.
But as the business grows, this attitude becomes a liability. Scaling the business means putting people in each seat who do a better job than you ever could.
What happens when ego stays in charge
Some owners cannot adopt, struggle to delegate and trust, and maintain the ego that they are best, or worse, the only one who can make the right decisions. I have seen multiple very promising businesses hit a ceiling or fail completely because of the ego of the owner.
Low-ego leaders build stronger businesses
Low ego leaders, on the other hand, let go; they know where they are world-class, and where they need to bring in others who are way better than they are.
As you’re scaling from 6 to 7 to 8 figures in revenue, your role is changing. As every management guru will tell you, you need to build structure and a capable team.
There is no place for ego.
This is the trait we consistently see in our best-performing clients, owners with low ego are the ones who ask more questions. And yes, sometimes they feel the question is stupid. They want to be the dumbest person in the room. They are more aware of what they don’t know. They are more open to input, adapt and engage. They share more information, so they get even more in return.
And the results show. We see a difference in the speed of change and, most importantly, the financial results.
Where is ego holding you back?
So ask yourself, which seats are you still occupying, where are you holding your business back? And which role does ego play in that decision?
If finance is the seat where ego is keeping you in control, is it time to bring in someone better?
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