Three Burnout Doors

A framework for founders who are burning out and need to decide what to do with their successful business. There are three doors to choose from, with hiring a CEO being an often overlooked but powerful option.

The Three Doors

• Door 1: Keep running the company

  • Continue being CEO despite burnout
  • Often leads to business plateau
  • Common but potentially harmful to business growth

• Door 2: Sell the company

  • Get rich and "live on mojito island"
  • Complete exit from operations
  • May result in selling for less than potential value

• Door 3: Hire a CEO

  • Maintain ownership while delegating operations
  • Allow someone else to "run the marathon" on your behalf
  • Balance of control and freedom

When to Consider Door 3 (Hiring CEO)

• Business Requirements:

  • Must have product-market fit
  • Minimum $300k in annual profit
  • Business must be able to afford base salary + incentives
  • Must have potential to make someone wealthy through growth

• Founder Requirements:

  • Must be willing to truly walk away from day-to-day
  • Accept that someone else will "parent your baby"
  • Be comfortable with 80% quality but better operations
  • Ready to empower CEO without micromanaging

Common Timeline of Founder Burnout

• Year 1-3: High excitement and engagement

  • Learning new skills
  • Hands-on with all aspects
  • Building something new

• Year 7-8: Burnout symptoms emerge

  • Less willing to "go the extra mile"
  • Decreased interest in growth activities
  • Business often plateaus
  • Founder fantasizing about escape

Key Insight

• Young founders often claim they'll run the business "till the day they die"
• By year 7-8, many view it as a "hellish waking nightmare"
• Hiring a CEO often leads to business growth as new energy and motivation is introduced
• Business typically doubles in first year under motivated CEO versus checked-out founder