As someone who has had experience in the business world, I can confidently say that being a founder is not a formal title within a company. While the role of a founder is often highly respected and holds significant weight, it does not grant any formal authority or decision-making power within the business.
In contrast, the role of a CEO is a job title that encompasses the highest level of responsibility within a company. The CEO is typically responsible for making top-level strategic decisions, executing the company’s vision, and overseeing the overall operations of the business. They are accountable for the success or failure of the organization and are often the face of the company to shareholders, employees, and the public.
The distinction between a founder and a CEO is important because it recognizes that starting a company does not automatically grant someone the skills or qualifications necessary to lead and manage a business effectively. Founders are often passionate individuals who have a unique vision and drive to bring their ideas to life, but that does not necessarily mean they have the expertise or experience to navigate the complex challenges of running a company.
In some cases, a founder may assume the role of CEO, especially in the early stages of a startup when resources are limited and the founder’s vision and passion are crucial to the success of the business. However, as the company grows and evolves, it may become necessary to bring in a professional CEO who has the necessary skills and experience to lead the organization to the next level.
I have personally witnessed situations where founders have recognized their limitations and willingly stepped aside to allow someone with more expertise to take over as CEO. This decision is not a reflection of their abilities or dedication as a founder, but rather a strategic move to ensure the long-term success and sustainability of the business.
The status of a founder is not a formal title within a company, and it does not grant any formal authority or decision-making power. The role of a CEO, on the other hand, is a job title that carries significant responsibility and is responsible for making top-level strategic decisions to execute the company’s vision. While a founder may initially assume the role of CEO, it is not a permanent title, and the ultimate goal is to have someone with the necessary skills and experience in the position to lead the company effectively.