Many people dream of becoming entrepreneurs, and often the biggest...
Letting technology do the heavy lifting for certain monotonous tasks...
Growth triggers a tidal wave of financial complexity,...
Mergers and acquisitions (M&A) can dramatically alter a...
February 11, 2022
Many founders also serve as their startup’s first CEO, but that doesn’t mean the roles are interchangeable or that it’s ideal for the company. Starting a company and running a business require two completely different skill sets. To answer the age-old question as to whether founders inherently make great CEOs, let’s examine how the roles differ from one another.
While the CEO runs a company already in existence, the founder is the one who came up with the idea for the business and started or launched it in the first place. They usually build the core team, establish needed resources, drive the company’s vision and seek out initial funding. They may also form a board of directors or decide what type of governing body the organization will have.
Unlike the founder, whose role focuses heavily on the early stages of a business, the CEO’s responsibilities span the life of the organization. As the firm’s senior-most executive, the CEO works to implement the company’s long-term goals, often in tandem with the founder. They oversee operations, communicate with the board of directors (to whom they answer, if there is one) and serve as the public face of the company.
Clearly, the role of founder and the role of CEO differ greatly, which reinforces the idea that they require different skill sets. While famous founder-CEOs such as Steve Jobs, Jack Dorsey and Jeff Bezos have captured public imagination as the norm, research suggests that their level of success is a relative anomaly as most founders may not make great CEOs, and vice versa.
A review of the accounts of some highly successful founder-CEOs, as well as those of similarly high-profile founders who failed as CEOs, shows certain attributes are favorable for the founder to succeed as CEO. These traits comprise:
They are good problem-solvers. This lends itself to the ability to figure out customers’ pain points and then build a business to address it. Their confidence in the solution is likely to position them as an industry thought leader.
– They succeed by finding solutions to problems nobody else has solved. To do that, they continually scan their environments to find information that could be a solution. This curiosity and willingness to learn spurs them to try new things instead of staying with the comfort of the status quo.
– They have an innate drive to win that helps them achieve their business goals. This is often represented with a demonstrated record of victory, whether it be in business, sports or other competitive endeavors.
They seek out people who are more intelligent and more skilled than they themselves are, rather than seeing such individuals as a threat. They prefer to work with people who know more than them in the interest of serving the company better.
They are not only aware of the risks facing the organization, but also prepared to remove or confront them. Because they excel at taking a forward-thinking strategic approach to threats on the horizon, they are willing to embrace innovation.
Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.
Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.
Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.
Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...
Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...
Working capital: The difference between your current assets and your current liabilities. It’s a key barometer of financial health. While...
Expanding your team and capabilities is critical to sustaining growth—but the question often arises: Should you build an in-house department...
A Chief Financial Officer (CFO) isn’t just a numbers person anymore. Modern CFOs play a pivotal role in shaping strategy,...
Once your annual revenue surpasses $10 million, you attract more attention from regulators, partners, and customers, especially regarding data privacy....
Hiring is one of the most pivotal processes in any organization, particularly for a medium-sized business looking to scale. Yet...
At Escalon, we are committed to keeping our clients informed about the latest trends, challenges, and opportunities across the industries...
Growth in headcount brings exciting opportunities for a business, but it also poses a key challenge: How do you maintain...