How to become a CEO: Tips on how to climb to the top

How do you become a CEO? A CEO is responsible for managing and leading a company. What your duties are can differ between different businesses. What is certain is that you need broad knowledge in many different areas in order to successfully lead the company forward.

In this article, you can read about how to become a CEO. First, we find out what a CEO is and does. Then you will find out what paths there are to becoming CEO and five tips to help you along the way.

How can you become a CEO?

There is no direct training or path to becoming a CEO. How you become one can depend on the size of the company you want to work for and in which field you want to work. Often it’s about working your way up. Your salary as CEO will also depend on many different factors. To better understand what paths there are to becoming CEO, we must first explain what a CEO is.

What is a CEO?

Vd is an abbreviation for managing director. It is the highest position for an employee in a limited company. There are both public and private limited companies. Only the public companies that are listed on the stock exchange must have a CEO. Private limited companies are not required to have one. It is the company’s board that appoints and dismisses a CEO.

A CEO is responsible for the so-called day-to-day management of a limited company. This means that a CEO has responsibility for specific areas within the business and must follow the board’s guidelines and instructions. What the CEO is responsible for depends on the size of the organization. It is the board that decides which decisions the CEO can make.

As CEO, you can, for example, be responsible for:

• Create a goal and a vision for the business
• Create a good working environment for the business
• Lead the business by delegating responsibility
• Distribute and balance resources
• Structuring and developing the business

A CEO has a varied job and a great deal of personal and legal responsibility. It is important that a CEO knows all the laws that he has to follow. Much of the work is about communication and being familiar with what is happening at the company and in the commercial area. Examples of work tasks could be talking personally with everyone in the business and reading industry magazines. Here we have an article where we take a closer look at What SEO dose.

What is the difference between a CEO and a manager?

There are different types of managers. A CEO is the highest type of manager . In larger companies, a CEO hires different types of managers who are responsible for different areas and report to the CEO. The managers under the CEO in turn hire managers and employees.

May You Also like:

Is Real Estate Investment Trusts a Good Career Path

What paths are there to becoming CEO?

How you can become a CEO depends on the area you want to work in. There are two ways to become CEO:

1. Start your own

If you have a good business idea, the fastest way to become a CEO is to start your own company. There are different business forms to choose from. In order to become a CEO, in theory you have to start a limited company. You can do this alone or with one or more people. You also need a share capital of at least SEK 25,000.

When you set up your company, you can appoint yourself as CEO. A small limited company has fewer rules to follow, but as the company grows, there are more laws to follow. As CEO, you must have knowledge of these.

The tips described below can also be useful for a CEO who has started his own business.

2. CEO of an existing company

There is no course you can take that will automatically enable you to apply for a CEO position. Rather, it is about gaining experience, knowledge and having a strong professional network. You often have to work your way up to a CEO position. It is also about showing the front feet, taking chances and building a personal brand.

The path to becoming CEO can look different for different people. Which steps you can take is individual and depends on your existing knowledge and skills.

Tips for becoming a CEO

Here are some tips on what you can do to become a CEO:

1. Get the right skills

There are now short courses that can prepare you for the job as CEO. But a three-day course provides an overview of what is required for the role rather than the broad knowledge necessary to successfully manage a company. To become CEO, you therefore need to acquire the right skills.

Here are some examples of skills you may need:

Knowledge of the industry you work in

As CEO, it is good if you have knowledge of and understanding of the industry you work in. You won’t need to involve yourself in details because your job is about having a holistic perspective. But understanding what is included in different processes, how different tasks are performed and how long they take to perform is important information for you to have knowledge of.

You can choose to educate yourself in the industry you want to work in and then gain practical experience by working in the field. You can therefore work your way up the career ladder. Alternatively, if you are already the CEO of the company, take the time to talk to the staff and listen attentively to what they have to say. Also read industry magazines to keep up to date with what’s happening in the industry.

Economics skills

The company’s management has appointed you as CEO to successfully lead the company and create profit. You are therefore responsible for the company’s financial success. Depending on your industry, it may be good if you have a degree in economics. Even if you do not have a bachelor’s degree in economics, you can take courses in, for example:

• Business economics
• Accounting
• Accounting
• Business development
• Entrepreneurship
• Marketing
• New entrepreneurship
• Statistics and analysis
• Handel
• International economy

In your work, you may work with controllers and other financially responsible person . You may need to go through a budget and various financial analyses. Then it is good to have knowledge and understanding to be able to drive the company forward.

Knowledge of the law

A CEO has a large legal responsibility for many different areas. Depending on the size of the company, there are rules that are governed by the Swedish Companies Act and which a CEO must know and follow. It is also important that you and the company comply with all other laws and guidelines. Examples of areas you may need to have knowledge in are:

• Rules about what you can delegate to others
• Rules on work environment
• Rules on personnel matters
• Rules and laws on tax and finance

Leadership skills

Your job as CEO is about leadership . Then it involves, among other things, developing qualities that make you a good manager. Learn to listen, dare to make difficult decisions and learn to motivate and coach those around you.

Take every chance you can to learn to lead, both at work and in your free time. You can also take courses in project management and leadership. Apply for management positions and make the most of being a new manager.

2. Create a personal brand around your successes

In today’s job market, it is important to have a personal brand. With a personal brand, you can promote yourself more easily. It can help you to be visible at the right times and to show off your achievements and competences.

In order to promote your achievements, you must first acquire them. Look for challenges and dare to take chances. You may not always succeed, but you will learn from each challenge and create valuable experiences. You can also use failures in your branding, and show how they have helped your development and your successes.

3. Create a professional network

Creating a professional network is one of the most important aspects you must consider if you want to become a CEO. Networking is important for any career  but can be especially important if you want to become a CEO. You can work your way up to CEO at the company you work for, or become CEO at another company. But if no one knows who you are and no one knows you, it will be difficult to get assignments as CEO. Therefore, it is important that you spend time creating a professional network and getting to know others in your industry.

4. Get a mentor

Working to become CEO is not always easy. Then it can help to get a mentor. There are many benefits to having one. You get to learn from them and they can help you develop. When something doesn’t go as planned, you can get support, encouragement and advice on how to move forward. It’s also a way to expand your network, as your mentor can introduce you to people in their network.

5. Plan your way to becoming CEO

In this article, you have received various tips on what you can do to become CEO. As you can see, there are many different ways to go about it. A final tip is to plan your way forward. The first thing you have to decide is in which industry you want to work. Then analyze your competencies and create a plan to reach your goal. You can create a strategy by using smart goals , and step by step you will achieve your dream of becoming CEO.