We are living in a digital world powered by advanced technology, and this has made the world to be increasingly a digital village. It is now easier than ever to start a lawn care business than it was a couple of years ago. Investors are hungry looking for opportunities to fund small businesses. Many companies are now being formed from the convenience of the founder’s garages and bedrooms. We now have more founders and CEOs than ever.
In many new startups, the company’s founder or co-founder serves as the CEO. During the early stages of a company, most operations are defined and performed by the CEO, until they build a robust team that can take over most tasks. It is therefore important to understand who a founder is and what differences does such a person have when compared to the CEO. Let’s start our discussion.
Who is a founder
In business, a founder is that person who forms a business or an organization. Essentially, its the work of a founder to take an idea and make it a business entity. In the early stages of a business, there will be one person tasked with the responsibility of making all key decisions involving a business. Their work is to assemble the right teams and grow a business to its potential. Such a person is called CEO. A founder can be the CEO or can hire a different person to be the CEO.
Difference between Founder and CEO
The difference between the founder and CEO emanates from the role played, whether it is active or passive. Even when the founding person leaves an organization and is no longer involved in running a company, they will still be considered founders. Additionally. much of the work of a founder normally happens at the initial stages of a company. On the other hand, a CEO has an active role and they serve to run the day to day tasks of a company, even if they were not involved in founding the company. It is common for one person to serve as both the founder and CEO, but that is not always the case. Even when one person is serving both roles, each role has its own set of tasks.
The role of a Founder
Founders are tasked with different duties in their entities. Their first task is to develop a business plan including executive summary, business model, market analysis, product and services, operational plan, sales, and marketing strategy among others. They also establish the mission and vision of a company. They form the board of directors and determine the kind of governing body for business. They are also involved in recruiting employees and creating the executive team, as well as fundraising.
Roles of a CEO
On the other hand, the CEO has different roles and responsibilities. The first task of a CEO acting as the head and representative of a company. They are the public spokesperson for the company. They oversee all company operations and maintain relationships with the board of directors. They track company performance and make all decisions on day to day running of a business.