OCTOBER 24, 2016  If you’ve built your small business from the ground up and now find yourself wearing so many hats that you can’t fit them all on your head, it may be time to hire a CEO.

“A CEO can manage the execution of the day-to-day tasks within your company, giving you time to work on pursuits such as sales and expanding your business,” says Piyush Jain, CEO of the mobile app developer SIMpalm

Benefits of Hiring a CEO

There may be several advantages to hiring a CEO, Jain believes.

“In addition to taking care of the day-to-day operations of the company, which gives you time to focus on the big picture, a new CEO can bring new management skills, insight and contacts to the table,” he says. “For instance, if you wish to expand the business and get work in a particular industry, hire a CEO who is well-versed in that particular industry, which brings those contacts and skills to your business.”

A new CEO can also inject fire into a business and engage employees who may have become lackluster. Alternate leadership can be objective about what isn’t working in the business, including employees, and use that insight to make changes that are good for the company.

Steps to Choosing a CEO

Vanderbloemen suggests the first step to choosing the ideal CEO for your small business should be to consult with a board or trusted group of business advisors about the timeline as to when you want to hire someone and the proposed compensation structure.

“Without a goal of when the organization wants the CEO on board, it’s easy for small-business owners to procrastinate or keep pushing the decision down on the priority list,” he says.

Vanderbloemen also recommends seeking outside assistance with the hiring process. “A transition from owner to CEO can be heated and emotional, and outside expertise like an executive search firm can help keep everyone on the right track toward a unified vision,” he says. “The board and small-business owner should also share the proposed timeline for hiring with key stakeholders and staff.”

A professional executive recruiter may be a good resource for choosing the best candidates, adds Lane Campbell, co-founder and CEO of June. “A key aspect of the hiring process is identifying what you want in the new CEO,” Campbell says. “Consider the responsibilities for the job and the characteristics that the new hire should possess.”

Challenges to Handing over the Reins

Not surprisingly, the biggest challenge associated with hiring a CEO may be letting go of control.

“It’s human nature to resist change, but the small-business owner must be intentional about trusting the new leader once he or she is on board,” Vanderbloemen says. “Let go of the way you’ve always done things and be open to changes the new leader will bring. This might mean a shift in vision or even some staff turnover. Change is never easy, but your team will be watching you to see how you react to it.”

It may help to keep in mind that the CEO sets the vision now, not you, Campbell notes. “If you truly want to set the vision, consider hiring a COO to run the day-to-day aspects of the business and you remain the CEO.”

Policy changes are likely with a new CEO, and this may also be difficult to handle, Jain believes. “New CEOs often like to change the way things are done and may even alter the hierarchy within the company,” he says.

Transition Gradually

To make the changes within your company more palatable for you and your employees, Jain suggests taking a slow, measured approach to the transition.

“Have employees gradually begin reporting to the new CEO and remember that you won’t be able to show all your policies and the ins and outs of working for your various clients to the CEO immediately,” he says. “There are even some aspects of the business, like financials and trade secrets, that you don’t want to relinquish control of initially or perhaps ever.”

Read more articles about leadership skills.

A version of this article was originally published on October 21, 2015.

Photo: iStock