BI 353: Knowing When To Stop Being CEO (Ft Tucker Max)

Episode Highlights

[03:09] Scribe Media

A lot of people needed scribes—people who put other people's thoughts into words.
A woman asked Tucker if he could be her scribe to get a book out without the typical painstaking effort of writing a book.
Scribe Media now has 260 employees and has done 737 books with almost a total of 200,000 reviews on Amazon.

[05:24] Hiring Someone Else to Be Scribe Media’s CEO

Tucker kept hiring people who were better than him to do his job.
Tucker eventually hired a professional CEO who made his business perform 20 times better than when Tucker was in the position.

[06:51] The Importance of Bringing In Experienced Leaders

If someone is good at finding needs in the market and figuring out a way to satisfy those needs, then they’re probably not good at all of the other skills of running a business.
Being an entrepreneur is the rarest thing right now.
It’s easier to find people that can take established roles to scale the entrepreneur’s ideas.
If you try and do everything, you’re going to do most things poorly.
You'll be a lot more successful if you focus on the things you love and are good at.

[09:09] Tucker’s Annual Revenue Before Firing Himself

Tucker’s company reached $1.5-2 million in their second year.
He decided that he wasn’t the best person for the role anymore — he needed real, experienced leaders.

[10:22] Step One: You’re Not the Best Person for the Job

It's challenging to let go of the position because your ego can get in the way.
Tucker realized that he was suffering and wasn't enjoying how he spent his days.
He valued his company’s mission more than his image, so he needed to get out of his position and hire someone else.

[18:27] Step Two: Understand Who You’re Looking For

No one’s going to knock on your door and beg for the CEO position. You have to find that person.
Tucker painted an attractive vision of Scribe Media. JeVon, the new CEO, wanted to be a part of that vision.
Tucker offered JeVon the opportunity to be the head of Scribe Media and take the credit.
Scribe Media was JeVon's lowest-paying opportunity, but he was working for more than just money.

[21:54] Evaluating Your New Hire

JeVon was first brought in as an advisor but soon started running meetings.
Tucker tested JeVon’s honesty by taking appropriate opportunities to be vulnerable around JeVon and sharing personal sentiments, and seeing if he would be vulnerable in that situation as well.
Traveling with someone can also help in getting to know them.

[24:22] What to Do to Find Another CEO

Create an avatar CEO—think about what type of person you need to run the company.
Then determine how you’re going to sell to that person.
Prepare against the counterarguments to your sales pitch.

[27:29] Compensating Your New CEO

JeVon was outperforming his contract, and the company was scared of losing him because he was still getting offers from other companies.
Tucker always made sure to know what JeVon wanted.
After a year and a half, they were able to figure out their final situation.
They were open and honest about what they wanted and had an evolving conversation about it.
Business and personal are not separate.

[33:36] Vetting Your New CEO

Tucker would not only evaluate the prospects in meetings but also in informal events such as dinners, drinks, and dancing,
They also put the prospects in casual situations. The evaluation begins as soon as the new hire arrives at the airport.
Make use of referrals/

[39:18] How Tucker’s Life Changed After Giving Up His Job