Becoming a chief executive officer (CEO) requires a certain dedication. Becca Millstein, CEO of Fishwife, advises aspiring entrepreneurs to pursue the role only if they’re deeply passionate about it and believe they’re the right person to lead.
“Also, only do it if you want to do it for at least the next 10 years of your life,” says Becca. “If you want to do that, it’s the best job in the world.”
Whether you’re working your way up the corporate ladder or starting your own company, here’s how to become a CEO.
What is a CEO and what do they do?
A chief executive officer is the highest-ranking executive within a company. As top decision-makers, CEOs oversee the entire organization and lead its strategic vision. The CEO role requires both big-picture thinking and oversight of day-to-day operations to manage the business.
A CEO’s job is to drive their company’s performance to ensure future success, working closely with board members and other business leaders—like the chief technology officer (CTO), chief financial officer (CFO), and chief operations officer (COO)—to make critical decisions on strategic planning, regulatory compliance, resource allocation, and crisis management.
4 skills of successful CEOs
Here are a few of the necessary skills aspiring CEOs should possess:
1. Leadership
An organization’s success depends on its leadership. A CEO inspires employees to achieve the company’s vision by setting the tone and nurturing a corporate culture that motivates teams to perform at their best. However, authentic leadership is about more than just inspiring others. Holding the CEO job means confronting challenges and managing the heavy responsibilities of being the top decision-maker.
“Think whether you’re cut out to manage people. By that, I mean motivate, hire, fire, empathize, and sympathize with countless [employees],” says Danny Buck, CEO of the jewelry brand Craftd. “The success or failure of the company stops with you.”
Another crucial yet often overlooked aspect of leadership is investing in and mentoring your organization’s next generation of leaders. CEOs foster team growth while driving the organization’s long-term success by offering employees development opportunities.
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2. Communication
Strong communication skills are essential for aspiring CEOs and future business leaders. Clear, persuasive articulation is integral to developing strong relationships with key stakeholders. As the public face of a company, the chief executive represents the business. Effective communication means tailoring a message to different audiences, including employees, board members, investors, and the media.
“A CEO has to wear many hats, and above all else, the ability to communicate effectively to both staff and shareholders the current position of a company and the future direction of a company, regardless of whether this is positive or negative,” says Erika Geraerts, CEO of the beauty brand Fluff.
Effective communication abilities in a CEO can reassure the company’s employees and stakeholders in uncertain times while strengthening the CEO’s executive presence—the perception of confidence and capability.
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3. Problem-solving
As a CEO, every day brings new challenges. When unexpected crises arise, CEOs must be able to quickly assess the situation, identify underlying causes, and develop solutions.
Problem-solving is also about being proactive by foreseeing potential risks and taking the necessary steps to avoid them. This problem-solving approach can save time and resources, and in some cases, it can spare your brand reputation.
4. Decisiveness
Making swift, effective decisions is central to the CEO job. Chief executives frequently make tough choices that impact the entire organization, and they often have to make such decisions without complete information. A Harvard Business Review study found decisive CEOs are 12 times more likely to be high-performing.
Decisiveness doesn’t mean acting impulsively. Instead, it means knowing when you have enough information to move forward confidently. It can be difficult at first not to be overcome by doubt when facing a tough decision, but over time and with experience, you can develop the ability to make informed decisions quickly.
How to become a CEO
If you aspire to become a CEO, here’s where to start:
1. Pursue an education
While some successful CEOs didn’t finish college (like former Microsoft CEO Bill Gates), a formal education in business can be a practical step to becoming a CEO. Pursuing a bachelor’s degree in business administration, for example, can introduce you to a range of business topics including accounting, marketing, and management, and provide insight into how these functions work together within a business. Business school can also provide invaluable networking opportunities by connecting you with a diverse group of peers.
Following that up with an advanced degree like a master of business administration (MBA) can deepen your leadership and strategy skills. MBA programs often include case studies that prepare students for real-world business situations.
If business school isn’t in your career path, you can gain knowledge in other ways, like online courses and industry certification programs. Successful CEOs never stop learning and continuously look for opportunities to improve.
2. Gain work experience
On-the-job experience is crucial for aspiring business leaders to become a CEO. It provides invaluable lessons beyond what classrooms offer, helping to develop a deep understanding of industry dynamics and the daily challenges employees face. As they progress through the ranks, leaders gain exposure to operations, finance, marketing, and human resources, which fosters a big-picture perspective on how different departments contribute to the company’s vision.
3. Grow your network
Building a strong professional network is a necessary step in becoming a CEO. Many CEOs earn their roles not just for their skills but because they’re well-connected in their professional communities.
Networking can boost your visibility within your industry and open doors to potential mentors, investors, and future business partners. Attend industry conferences, join professional organizations, and use platforms like LinkedIn to make new connections. After meeting someone, follow up and stay connected.
You can also reach out to individuals you admire for informational interviews. Building strong relationships with other CEOs and industry experts can offer valuable support and insights for navigating complex business challenges.
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4. Develop leadership skills
Cultivating the necessary leadership skills to become a CEO requires practice and experience. To develop your management skills, look for opportunities to lead projects or teams in your current role. Improve your mentoring skills by holding one-on-one meetings with team members, and look to experienced leaders for mentorship.
Offering to present at team meetings or joining a Toastmasters club can enhance your communication skills. Regularly reflect on your experiences and identify the areas where you can improve.
Developing leadership skills is an ongoing process; embrace a learning mindset. Focusing on these areas will equip you to handle the challenges and responsibilities of becoming a CEO.
How to become a CEO FAQ
How do you become the CEO of a company?
Future CEOs typically rise up the corporate ladder and often hold executive roles, like executive vice president or COO, before stepping into the CEO role. Building meaningful relationships with business leaders and board members can provide crucial support and insights to help advance aspiring CEOs toward future success.
What are the qualifications of a CEO?
A CEO’s qualifications typically include an educational background in business, extensive management experience, and strong leadership skills. Strategic thinking, communication skills, decisiveness, and the ability to inspire and motivate teams can also go a long way.
How do most CEOs start out?
Most CEOs start their careers with a formal education in business administration by pursuing a bachelor’s degree or MBA, but paths vary. Many CEOs enter the workforce in entry-level positions where they can gain on-the-job experience and exposure to different areas of business operations, while others become a CEO by founding their own companies.
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