Building A New Vision For Your Agency When A Cofounder Leaves
Paul David is cofounder & CEO of Literal Humans, delivering resilient growth for tech-for-good companies, B2B SaaS startups and nonprofits.
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In April 2024, I wrote an article about preserving and nurturing cofounder relationships through executive coaching. Guess what? I'm now a solo founder. My cofounder and I parted ways.
Cofounders' paths sometimes diverge, and that divergence can catalyze transformative leadership growth. It did in my case. Here are some of the lessons I learned from this experience. I hope other founders in similar situations can learn from them as well.
The most challenging aspect of cofounder relationships is alignment. For me, the realization that my cofounder and I had different visions for the agency's future emerged slowly. We discovered increasingly different views on fundamental business decisions and misaligned risk tolerances. Our relationship became strained.
My biggest regret is one familiar to most men: We didn't talk to each other enough. It's honestly one of the biggest disappointments of my professional career. It's a lesson that I'll take forward: Just talk to your team more. Don't assume everything is good because you've hired well.
The decision to part ways isn't easy, but ultimately it can be necessary. This departure forced our agency to grow beyond the two-man nucleus we had built together.
What warning signs should you look for? You might have divergent opinions on hiring and management. Perhaps you lack shared ownership of the financials—an absolute must. Maybe your workflows are wildly siloed, which is likely confusing your team.
After my cofounder's departure, I embarked on a deliberate path of personal and professional development. I knew I couldn't be the same CEO. I switched to a new executive coach and completed the Goldman Sachs 10,000 Small Businesses program to rewrite our growth strategy. We also implemented the Entrepreneurial Operating System (EOS), which transformed my understanding of getting the right people in the right seats.
We built a more robust operations team, including hiring a new operations manager with deep agency experience, alongside dedicated project and account managers. It was a hard transition, and it resulted in some difficult departures as we became more accountable to ourselves and our clients.
The takeaway here is that your founding team is rarely your winning team. To evolve your own leadership, surround yourself with a brain trust of fellow business leaders you can call on when things get tough. For your team, invest the time in job scorecards and professional development tools that offer clear progression frameworks.
After my cofounder and I parted ways, I decided to become a trained executive coach myself. Perhaps surprisingly, this journey wasn't about adding another credential—it was about fundamentally changing how I interact with my team. The training deepened my curiosity, made me a stronger active listener and enhanced my attunement to the team's collective energy, allowing me to better support and guide them during both challenges and successes.
Processes like becoming an executive coach force you to be a novice again and get real-time feedback on how you interact with people. They are quite humbling for leaders who are used to power via formal authority.
Whether it's coaching or picking up a new hobby, don't be afraid to learn a new skill that will serve as a mirror of your leadership style.
One of the biggest changes in my leadership style has been spending more intentional time with our team. Regular team meals have become a cornerstone of our culture. These aren't just about food; they create space for genuine connection and informal dialogue.
Now I leverage my professional network to enrich the team's development. Regular brown bag lunches with board members and industry leaders have opened new perspectives and opportunities for mentorship. This approach to professional development has helped create a learning culture where growth is continuous and collaborative.
A cofounder exit is the perfect time to reset your relationship with your team. They're used to dealing with you and your cofounder—now it's just you. Be transparent about how things have changed for you (especially how hard the transition has been), and you're likely to be met with remarkable empathy and support.
One of my most significant realizations was that being a visionary leader doesn't mean remaining removed from core operations—in fact, it's the opposite. My previous tendency to abdicate responsibility for certain aspects of the business was holding us back. Today, I maintain my role in driving new business while being much more engaged with internal operations.
I recommend getting into the weeds with your operational and team leaders. Explore "how the sausage is made" and suggest optimizations (e.g., I worked with our content marketing lead to implement an AI tool that reduced our briefing time by half). Done right, this doesn't feel like micromanaging. It feels like support. Strongly consider splitting your time between client retention and new business, as those are two key drivers of growth.
My path forward has been about creating systems that support sustainable long-term growth. Clear decision-making processes, aligned organizational culture and stronger team dynamics have replaced the uncertainty that often comes with cofounder transitions.
The key is to approach these transitions with professionalism and clear communication. While cofounder relationships are often celebrated in startup culture, we need to normalize the conversation around cofounder separations when they serve the greater good of the organization.
Remember: It's not just about parting ways—it's about creating the space for new growth, better alignment and stronger leadership. In my case, this transition catalyzed a series of positive changes that have strengthened our agency and positioned us for sustainable growth. We somehow matched our previous year's revenue figure when we had every reason to see a big dip. We built a dynamic new team to take us to the next level of growth. We even became a B Corp amid all of this change.
The journey from cofounder separation to stronger executive leadership is about personal growth for the remaining founder, deeper connections with your team and building a culture where everyone can thrive.
Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?
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