Becoming the CEO of a company is a dream for many people… but technically, it’s something you can cross off your bucket list in 5 minutes as long as you aren’t too picky about how big of a company you want to be the CEO of.
There are two ways to become CEO:
1) Being appointed as the CEO of an existing company, or:
2) Starting your own company and declaring yourself the CEO (the much more accessible option)
Let’s get into it:
Path 1: Being Appointed as CEO
If you want to be promoted to CEO (or be directly hired as a CEO), that’s a long path that can’t really be summed up in a single blog post. But we’ll go over some basics:
Gaining the Necessary Experience
To be considered for a CEO position in an existing company, you’ll need a strong background in business, management, and leadership. This typically includes:
Educational Background: While it’s not a strict requirement, most CEOs have at least a bachelor’s degree, often in business, economics, or a related field. An MBA or other advanced degrees can also be beneficial. But of course, there are also tons of dropout CEOs who never finished college so this isn’t a hard rule.
Work Experience: Climbing the corporate ladder is a common route. This involves gaining significant experience in management roles, demonstrating your leadership capabilities, and achieving substantial results.
Industry Knowledge: Deep understanding of the industry in which the company operates is crucial. This expertise helps in making informed decisions and steering the company in the right direction.
Building a Network
Connections can play a pivotal role in becoming a CEO. Networking with industry leaders, attending conferences, and joining professional organizations can open doors to opportunities. Mentors and sponsors within your network can provide guidance, recommendations, and even advocate for your promotion.
Demonstrating Leadership
To convince a company to appoint you as CEO, you need to showcase your leadership skills. This includes:
Vision: Articulating a clear vision for the company’s future and a strategic plan to achieve it.
Decision-Making: Making informed, timely decisions and taking responsibility for their outcomes.
Communication: Effectively communicating with stakeholders, from employees to investors.
Don’t have the necessary experience yet? Need a way to build up those skills? Well, you can always…
Path 2: Start Your Own Company
Starting your own company is quite straightforward than you might think. There’s really nothing stopping you from just declaring that you have a company – official paperwork isn’t technically required.
This obviously won’t be the most impressive sounding company, and it’ll be a company that doesn’t make any money, but it’ll still technically be a company – which means you can technically appoint yourself as the CEO. Again, you just won’t be a very impressive CEO.
Making it Official
If you want to add some more legitimacy to your business, forming an official entity like an LLC or a corporation might be the way to go:
- LLC Formation: Creating an LLC involves filing articles of organization with your state’s business authority and paying a fee. This document includes information about the business and its members, and you can list yourself as the CEO.
- Corporation Formation: Establishing a corporation is more complex and involves creating bylaws, issuing stock, and appointing a board of directors. This structure is often suitable for businesses that plan to seek investors or go public.
I should be clear that this is not necessary at all. Incorporating means you’ll need to file a non-trivial amount of paperwork and will need to pay a number of fees. Don’t take this for legal advice, but you can always do all of that once you actually have a real business worth incorporating. By default, you can still operate as a sole proprietor – and you can be CEO of your sole proprietorship.
The Reality of Being a CEO
Declaring yourself as a CEO is easy, but the real challenge lies in living up to the title. Being a CEO involves:
Strategic Planning: Developing long-term strategies to grow and sustain the business.
Financial Management: Overseeing the financial health of the company, including budgeting, accounting, and fundraising.
Team Leadership: Hiring, training, and managing a team of employees or contractors.
If you aren’t actually doing any real business, have no finances to manage, and no team to lead, then you’re probably not going to impress many people even if you do have the title.
Building a Real Business
If your CEO ambitions go further than just printing the title on a business card, you’ve come to the right place. I’ve helped thousands of people start their own businesses – real ones – and it’s something that you can learn too.
The best place to start is my Ultimate Guide to Profitable Business Ideas. It’s one of the best resources I ever made, and it’ll help you become the CEO of something you can actually be proud of.
Get my Ultimate Guide to Profitable Business Ideas, free:
Just tell me what email to send the guide to:
What is the Salary of a CEO?
If you’re considering the CEO path, you’re probably wondering about the paycheck that comes with the top job.
According to Salary.com, as of April 2024, the average Chief Executive Officer salary in the United States is a whopping $838,489. That’s right, the average CEO is bringing in over $800K per year.
But that’s just the average. CEO salaries can actually range pretty widely, typically falling somewhere between $633,609 and $1,080,346. That’s a big spread, and where a CEO lands on that scale depends on a few key factors.
First, company size matters a lot. CEOs of large, multinational corporations are usually going to be on the higher end of that pay scale. They’re managing huge teams, overseeing complex operations, and often dealing with massive budgets. All that responsibility comes with a hefty paycheck.
Second, industry also plays a role. CEOs in certain sectors, like technology or finance, tend to command higher salaries than those in, say, non-profit or education. It’s all about the market and what the going rate is for top talent in each field.
Finally, a CEO’s experience and track record can greatly influence their salary. A CEO with a long history of success, who has led multiple companies or navigated major challenges, is going to be able to negotiate a higher salary than someone who’s new to the role.
So, while the average CEO salary might be $838,489, there’s a lot of variation within that number. Some CEOs might be making closer to a “regular” salary, while others are easily clearing a million dollars per year.
But here’s the thing: CEO salaries are often just the tip of the iceberg. Many top executives also receive bonuses, stock options, and other perks that can significantly boost their total compensation package. So, while the base salary might be impressive on its own, the real earning potential for a CEO can be much, much higher.
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