, Productivity tips

Founder CEO Vs Normal CEO

To be Normal Or Abnormal

 

Is it better to be the founder and the CEO or to be a CEO of a company which was founded by someone else?

Let us dig deep and try to find a few answers.

The main difference between a founder CEO and a non-founder CEO is the founder CEO is much more passionate about the company and its employees.

 

the-ceo-trouble

 

This is both an advantage and disadvantage. The founder CEO is much less likely to give up on the mission and direction of the company and is less likely to cut back or layoff employees during tough times. Just the opposite is true for a non-founder CEO.

This has implications for both drive and growth and reckless actions.

Mark Zuckerberg spent 10% of Facebook’s shares to buy WhatsApp. Without even allowing much board-level discussion. $20b at the time,  far more now. And $1b to buy Instagram when it had a handful of employees.

Crazy!

These are bets a Non-Founder CEO almost never can make.

Too risky, too much from the gut and too dilutive.

 

The Hired/Non-Founder CEO loses her job when these don’t work out. Zuck doesn’t. And the non-founder CEO has to socialize the idea, convince everyone. It takes months or even years. Zuck can move in a day.

We all learned this from Jeff Bezos. A Hired CEO is going to be judged annually. So will a founder, but she’ll be more insulated from the risk of being fired every January. CEOs aren’t judged quarterly, but they are certainly judged annually.

You can miss a quarter, but as a non-founder CEO, your job is always at risk if you miss a year. So it’s very hard to make expensive long-term bets. It really is. And you cannot really divert your focus away from what the founder wants. We all know way too well what happens when we do that.

People want to buy from and work for someone truly authentic. Non-founder CEOs can do this, too. A non-founder CEO can care so much, and learn so much, she is just as authentic as a founder. Elon Musk didn’t really found Tesla,  he was just the first investor but there is so much more to them.

Eventually, it won’t matter but maybe even up to $100m in ARR and beyond, there will be some things only the founders understand. And because of that, only the founders will really understand how it all pieces together: the vision, the bugs, the strategy, the technical debt, the early customers. It’s hard for any mere mortal to understand how it all really works.

Let us list them down for a better understanding.

 

Founder CEO 

 

ADVANTAGES 

 

  • Has real skin in the game
  • Will do whatever it takes to make the company succeed
  • He knows what type of people he needs on his management team.
  • Might not want to find investors to help him because he wants absolute control of his company.  
  • He has the vision of how the company will ultimately look
  • He knows exactly what it will take to reach specific goals
  • Knowing the end goal might make him take calculated risks to reach those goals.

 

DISADVANTAGES

 

  • He has real skin in the game
  • The new company is his baby, and that may blind him to the fact that he’s throwing good money after bad.
  • He might be over-protective of his company to the point that he won’t listen to others’ ideas of growing the company.
  • He is likely to work 100 hours a week or more to ensure success.
  • He might take unnecessary risks to succeed.
  • Any outside advice is ignored.
  • As this is his baby, he might invest every penny he has only to go down with the ship.
  • He might believe that there are no managers good enough to join his team.
  • His team will be nervous, not knowing if they will get paid this week, if money is short.

 

Normal CEO

 

ADVANTAGES

 

  • He brings outside experience to the new company
  • Outside experience brings new ideas that might help the company grow.
  • He likely knows many successful managers/executives that he can bring onboard to build a successful team quickly.  

 

DISADVANTAGES

 

  • May not have the right experience for the company
  • Being a successful CEO in one industry does not guarantee success in this new company’s industry.  
  • The normal CEO is not 100% invested in the absolute success of the company, he might be only 95-99% invested.
  • Not having a 100% interest in the company means that while success is the goal, some CEOs will only go so far to make the company succeed.
  • Might not want to take calculated risks to succeed.  
  • His lack of industry experience might cause him to hire the wrong management team.
  • The normal CEO can walk away at any time if things get too tough.
  • If a better opportunity comes along, he might jump ship.

 

So, who is a better option?

We leave that up to your rational mind.

There are 36 comments

  1. Once upon a time, there may have been people on the planet who didn’t know who Donald Trump was. Love him or loathe him, he is an entrepreneurial tour de force with a sketchy success rate and a pathological desire to take risks – usually with other people’s money. https://www.cn-agency.com/

  2. Therefore, this short post is dedicated to video slot fans and all other enthusiasts who are just as avaricious, stingy and craving as we are, the crew members of slots.info. We investigated the new slot sites where you can play for free but also looked at a few slot games that instantly caught our lovingly glances. And as my boss likes to say- less talk, more writing… which is basically the same thing… but who am I to contradict them…?! 카지노사이트

  3. I’m very satisfied to look your article. Thank you a lot and I’m having a look ahead to touch you. Will you kindly drop me a website?

  4. Finally, we need to mention the volatility of the slots. Volatility is the risk, and there are slots with both high and low volatility. Ones with high volatility will pay more, but less often; while low volatility slot machines will pay less money but more often. https://www.ikm91.net

  5. I can’t get Disqus to work on Blogger, and the native commenting system doesn’t allow you to properly reply (creates a new comment instead of one nested below the reader’s comment), so I’m curious about the Facebook comments plug-in… do you know if it’s possible to import old comments or would they all be lost upon install? I’ve had my blog a few years and don’t want to lose existing comments. Thanks!
    I don’t think Facebook will let you import comments from a different system, if that’s what you mean. That said, I think you just add the code to your template and disable the option to use Blogger comments. So there’s a chance that the comments you’ve gotten in the past will still be there, but future posts will just use Facebook comments. I’m not 100% on that since I don’t use blogger though.

  6. And indeed, I have personal experience to back up this statement, as my blog has benefited from good commenting habits, and I have built good relationships with other bloggers by adding useful, meaningful comments onto their blogs.
    I moderate more than 100 comments every day, and I know what kind of comments make me feel good or give me food for thought, and what kind of comments leave me with a negative feeling or no feeling at all.
    카지노사이트

  7. Such comments may be positive in nature, but they add no value whatsoever to the post. Nobody wants to read a meaningless drivel that simply takes up space. A blog’s commenting feature should only be used
    f you are making the mistake of adding meaningless 2-3 word comments on various blogs, you are wasting your time, and more importantly, you are wasting the time of the other blogger — annoying fellow bloggers is not the point of commenting.
    카지노

  8. Let’s talk about how to develop a practice of good, strong, meaningful commenting that will benefit you and your fellow bloggers and readers.
    First, I suggest that you sign up for Gravatar so that you can add a personal image or brand image to your commenting profile. This is a must-have requisite when looking to brand yourself.
    바카라사이트추천

  9. 1백의 초월자급 영웅들이 모인 부대의 위력은 무시무시했다. 솔직히 성훈은 이대로 전쟁이 끝날 줄 알았다. 그러나 한 마법사가 모습을 드러냈을 때, 그 기대는 산산조각 났다.

    https://waldheim33.com/yes/ – 샌즈카지노

  10. 시체 골렘 군단을 짓밟은 후, 기병대가 전장을 종횡무진 누볐다.하늘 높은 곳에 허깨비처럼 나타난 마법사.동작은 간단하지 만, 그 결과는 결코 간단하지 않 았다.성훈은 목을 틀어쥐었다.

    https://waldheim33.com/cocoin/ – 코인카지노

  11. 강력한 저주.
    살아있는 육체를 그대로 죽은 자의 것으로 뒤 바꾸고, 영혼을 타락시키는 막강한 힘이 성훈의 전 신으로 파고들었다.
    샘솟는 빛을 최대한으로 끌어올리고, 휘광을 활 성화했다.

    https://oepa.or.kr/ – 우리카지노

  12. 빛의 가호까지 사용하여 저항력을 최대 한으로 올렸다.
    성훈이 장비하고 있는 무구들이 일제히 빛을 뿜 었다. 성훈만이 아니라 전 기병대를 감싼 악의 기 운을 밀어내려고 했다. 빛의 벽이 생성되어 검은 마력과 힘겨루기를 했다.

    https://oepa.or.kr/theking/ – 더킹카지노

  13. 부질 없었다.
    성훈은 손끝과 발끝부터 신체가 썩어 들어가는 것을 느끼며 전율했다.
    여기저기서 절망 어린 탄성이 새어나왔다.
    성훈은 황급히 허리중에 꽂아둔 강화 주문서를 꺼냈다.

    https://oepa.or.kr/first/ – 퍼스트카지노

  14. 전부 다는 아니고, 데이휘나가 분류한 것 중 저 항력 관련 주문서를 손에 잡히는 대로 꺼냈다. 덜 덜 떨리는 손으로 굳세게 붙잡은 후, 단번에 찢어 버렸다.

    https://oepa.or.kr/sandz/ – 샌즈카지노

  15. 그 사이 다른 기 병들은 지휘관을 제외하고는 모 두 숨통이 끊겼다.
    아니, 그 정도에서 끝나지 않고 타락한 암훅대 군주가 되어 일어났다. 미개한 대륙 같으면 단일 개체만으로도 모든 종족을 멸종시킬 정도로 강력한 존재들이었다.

    https://oepa.or.kr/coin/ – 코인카지노

  16. 페가수스는 몽땅 죽었다. 그 빛나던 육체가 쇳 물처럼 녹아내려 질척한 늪을 형성했다.
    정신을 차리고, 짧은 검을 지팡이 삼아 자리에 서 일어났다.
    짧은 안내 문구가 떴다.

    https://oepa.or.kr/thenine/ – 더나인카지노

Post Your Thoughts

Close

Book a Tour

Would you like to see our space before joining? Come and visit our coworking space. Please fill out the form and our manager will get back asap.