It happens more than we admit: Entrepreneurs get kicked out of their own companies. What to do when it happens to you.
As the co-founder and CEO of EDGAR Online, I ran the company for thirteen years. For the vast majority of that time I was fully focused on the development and growth of the company, and firmly committed to remaining the CEO until I felt we’d achieved our vision. But after a very desirable acquirer backed out, my investors grew restless and pushed for a succession plan. Two months later, I was informed by the board that the succession plan had been accelerated and that our President would now be the CEO.
This sort of scenario happens far more often than either entrepreneurs or investors like to admit. Here’s how, when the time comes, you can be prepared:
Write Your Succession Plan
Whether your company is public or private, make sure you have a succession plan and that your interests are protected. Assume that your separation agreement will have a non-compete clause, and make sure you understand the terms of it. The non-compete should related to your company’s business specifically, and should not prohibit you from other types of ventures. Even if you live in California, where most non-competes are unenforceable, you don’t want to be heading to court just as you’re being ousted.
…to read this article in full, visit leading US small business resource, Inc.