When Should a CEO Start Thinking About Their End State?
Ben Carcio
One of the most common questions I get is: When does it make sense for a CEO to start thinking about their end state? The truth is, there’s no definitive answer, but I believe the right time to start is when your departure would truly impact the company—when you’ve built enough value that your absence would matter.
In the early stages of a company, if you have no customers or revenue, there’s little need to consider your exit beyond possibly shutting the company down. But once your business reaches a point where there are real customers, meaningful revenue, and a growing team, it’s time to start thinking about your end state.
This isn’t about leaving immediately; it’s about recognizing that at some point, you might not be the right person to continue leading. Whether that future involves stepping aside for new leadership, merging with a larger company, or preparing for an IPO, the key is to anticipate that moment.
I remember when I first started thinking about my own end state as CEO of Promoboxx. It happened the day we raised institutional capital and formed a formal board with investors. From that moment, we were no longer entirely in control—the board could fire me. That realization hit hard, and I began worrying about being replaced. In hindsight, it was premature and a bit irrational to focus on that fear. Instead, I should have concentrated on pushing the business forward. As it turns out, that “tap on the shoulder” did come, but it was three years later—well after I had first started worrying about it.
The key lesson I took from this experience is that thinking about your end state early doesn’t have to be a negative or fear-driven process. The moment you think you might no longer be the right fit for your role—whether that’s after raising a Series A, forming a board, or hitting $1 million in revenue—is the moment you should begin planning for what comes next. Doing this ensures you’re not blindsided when the time arrives, and it increases the likelihood of a positive transition.
If you can approach this proactively and put a plan in place, you’ll be better equipped to navigate your eventual transition and steer your company to success, even after you’re no longer at the helm.
