One of the biggest wastes of talent and time I’ve witnessed is when founders don’t walk away from their companies. Like an overserved party guest, they just don’t take the hint to leave. And I’m not talking about companies that are still growing and fundraising (though sometimes founders should leave those, too)–I mean the success stories. The ones that actually have a positive P&L and have made sure the company shouldn’t run out of money.
These don’t-make-me-go founders are too attached to their company, their idea, or their one win because they’re too scared of what’s next (or too narcissistic to realize that everyone wants them to go). You don’t want to be that college kid that still goes to high school prom. Or that investor whose one claim to fame is investing in Google early. You don’t want to be a one-hit-wonder, and you certainly don’t want to get pushed out. It will mar your reputation and your confidence.
Good founders make the choice to pull themselves out of the business strategically. They hire experts until they no longer have to run the day-to-day operations. They keep their investors and board happy so when it comes time for the next big thing, they’re right there to support them.
Bad founders think they are the only ones who can run their company but don’t realize they aren’t running the business anymore–they are so arrogant about the “founder” title that they fail to realize they have no real responsibility left. They simply don’t realize it’s time for them to go and start something new.
If I could be talking to you (and I would never insinuate that I am), here are more signs you should find a new gig:
1. You’re fully vested.
If getting any more equity is not that economically meaningful, walk away. You’re actually doing yourself and your portfolio a disservice to stay. Why would you just sit there and collect when you could be collecting and building another business? Buffett would not approve.
2. Your baby is all grown up and off to college (there’s 200+ employees).
Congrats, but guess what–you may be employee zero, but employee 200 really doesn’t need you. It’s a real company with real structure in place (unless you’re stuck with an org chart gone wild, then maybe you should fix that first).
3. You don’t make a ton of decisions.
Or any decisions, really. If you have a team of executives who handle everything, or ask you for your advice but have already informed the team of the plan, you’re more of a figurehead than an executor. Your time’s up.
4. Your title is “Some Contrived Title & Founder” and you have no real direct reports.
There’s no bigger proof than your business card. Maybe you were never CEO, or you were and it was a unanimous decision that you’re better suited as the “face of the company.” It’s not always a bad thing–good founders will recognize that they might not be the best CEO and that their COO Jane Doe would make a badass one. Bad founders don’t see the writing on the wall.
5. No one asks where you are.
Are you able to take long vacations that actually impact the business positively, or sneak away to long lunches and it doesn’t really feel like sneaking? Red flag.
6. You have other ideas.
If you’re a founder, I’m going to bet that you’re a visionary. Set that vision on something else. There are other ideas, businesses, solutions you could be creating. Don’t be lazy–do the right thing and build something new. You’re actually doing yourself a disservice by continuing to work at your company fully vested versus building equity value in something else.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.