What no one tells you about stepping back from the business

So you’re at Level IV. You’ve built the team. Sales, ops, finance, HR — they’re all running without you.

Now you’re ready for the final move:

Get a General Manager in place so you can step out fully.

That’s Level V. And while it sounds like the dream… it’s where a lot of owners quietly unravel.

Let’s break down what this transition really takes.

The 5 Levels of Growth (Quick Recap)

Level I: Solo operator — just you, a truck, and tools

Level II: 0–20 employees. You do everything: sales, ops, finance, HR, marketing

Level III: You hire ops, finance, and admin — and only manage sales

Level IV: A full leadership team runs all major functions

Level V: A GM runs the business. You step out entirely

This issue is about the jump from Level IV to Level V — and how to do it without sabotaging your company or your sense of purpose.

Letting Go Isn’t as Easy as It Sounds

In theory, Level V means freedom.

In practice, it means identity shift.

You’re no longer “needed.” Sales are happening. Clients are taken care of. The team reports to your GM — not to you.

And that feels strange.

For many owners, stepping back means facing discomfort. They don’t know who they are without the urgency of the business. That’s when mentorship — or yes, even life coaching — becomes essential.

You’re not just building a self-managed company. You’re building a new role for yourself.

Choosing the Right General Manager (It’s Not About Flash)

The GM you hire (or promote) needs more than experience. They need to align with your values.

Here’s what to look for:

• Strong cultural fit and emotional maturity

• A clear, open, honest communication style

• Humble, hungry, smart — the “ideal team player” combo made popular by Patrick Lencioni

• Someone you look forward to meeting with

We strongly recommend working with an executive profiler to objectively assess personality fit — including a DISC assessment with both your leadership team and your GM candidate.

One of the best in the trades space is Rachel Wolfe — she does this at a high level and for a very reasonable price.

Avoid the mistake of hiring a flashy outsider and handing over the keys too fast. This needs to be someone you’ve known for years and worked with for at least 3 years.

This Isn’t the Time to Let Go — Yet

Once your GM steps in, your instinct might be:

“I’m out. I’ve made it.”

But this is exactly when you need to press in.

For at least a year, you should:

• Sit in on leadership meetings

• Review reports across departments

• Ask questions, give opinions, mentor actively

It’s not micromanagement, it’s coaching. You’re still shaping the company’s future. You’re just doing it through your GM now.

Pull back too early, and things unravel fast.

Don’t Make Them Your Retirement Plan

A common trap: owners give too much authority to a GM without a succession or incentive plan in place.

Then one day that GM walks away — and you’re back in the seat, scrambling to hold things together.

The fix? Incentivize properly.

As Charlie Munger said: “Show me the incentives, and I’ll show you the outcome.”

Put Skin in the Game — The Right Way

We don’t recommend handing out shares.

But we do recommend tying stock options to performance-based milestones like growth and profitability.

This way, your GM has real upside — without giving up ownership for free.

Bonus: consider offering similar incentives to your leadership team. If they’re helping build the next version of your business, reward them like it.

Ready to Move Into Level V — Without Losing Control?

We’ll help you:

• Vet and coach your next GM

• Design a proper incentive structure

• Lead through mentorship — not micromanagement

• Tighten up your accountability system and company processes across all divisions

👉 Learn more about Highspire Coaching

👉 Book a call to get started

Forward always,

Highspire