CEO is one of the most coveted, and least understood, jobs in a company. Everyone believes that CEOs can do whatever they want, are all powerful, and are magically competent. Of course, nothing could be further from the truth.
Start-up does not need a CEO but rather it needs a leader who can work with the tiny team at the ground level to make them comfortable and grow with the company.
What are Responsibilities of a start-up Founder/Leader?
I always use real life examples as it will help you to connect and understand the situation better. Let’s take an example of a car which is personally designed – > manufactured -> driven.
Setup objective and vision:
This is idea stage when founder/founders generate idea to build a product. “E.g. – I want to make a Car”
Online Start-up product building stage is when you are designing and manufacturing a car (here, car is denoted as Product). At this stage founder role is to bring together a team of specialists who can sweat with him to build a car (product) in which they can sit together and drive a long journey ahead.
Build Culture that drive productivity:
While manufacturing the car primary role of the founder/leader to build base of the happy environment and culture among the team so that when the car(product) is ready for a long journey they enjoying the journey together driving through in traffic (competition) or highway (market leader).
Need of CEO:
After they (start-up team) successfully manufacture a car (Product) then they need a well-trained driver (CEO) who has driving experience and all technical knowledge about the car (Product), what speed to drive initially (growth stage), calculating when to fill in fuel and from which fuel station (Raising funds and choosing investors).
If the driver (CEO) does not know how to drive the car (company) may face the issues like:
Might end up taking wrong route – Choose wrong product and market to enter.
Members travelling together may drop down and sit in a different car to travel – Key employees may leave the company and join other competitors.
Might not find fuel station if drive on wrong roads (enter wrong market/ reaching out wrong target audience) without research – Might end up burning all cash and shut down operations for not able to get funded by investors due to issues like market size, competitions etc.
Chances of product breakdown while accelerating – If CEO does not have the required technical knowledge about the product it with break down when expanding.
Rounding up – A start up does not need a CEO but a founder/leader who can set up strategy and vision, build team and company culture and plan and control capital allocation. CEO is required for expanding company size and managing large funds, motivating and building culture for big number of employees, representing the company in media, making sustainable long and short term strategies with vision.
Main reason for an online start-up to shut down is not finding the right CEO who can guide the company through with his abilities, skills and relevant experiences.