Understanding the difference between "founder mode" and "manager mode”
Inked by Blinc
September 27, 2024At the YC event, Brian Chesky shared insights that resonated deeply with founders in attendance. His central message was clear: the conventional wisdom about scaling a company—particularly the advice to "hire good people and give them room to do their jobs"—doesn't always apply to founders.
When companies reach a certain size, many founders are told they need to step back and let their managers take the reins. However, Chesky found this advice to be counterproductive, leading to struggles rather than success.
Brian Chesky is the co-founder and CEO of Airbnb, one of the most well-known success stories in Silicon Valley. Under his leadership, Airbnb went from a small startup to a global giant in the hospitality industry. Chesky's path to success wasn’t smooth, as he encountered numerous challenges along the way, particularly when it came to scaling the business.
He found that traditional advice on running large companies—where leaders were expected to delegate most of their responsibilities—was not effective for Airbnb's growth. Chesky took inspiration from how Steve Jobs handled Apple, opting for a more involved, founder-driven approach to running the company. This shift in mindset has proven to be crucial for Airbnb's success, and his story serves as an important lesson for other founders, including those Blinc supports in accounting and compliance.
Chesky's discovery came from studying how Steve Jobs ran Apple and realizing that founders should retain more hands-on control of their companies, even as they scale. His approach has worked wonders for Airbnb, helping it achieve some of the best financial margins in Silicon Valley. This idea of "founder mode" versus "manager mode" became a pivotal point for founders who felt they had been misled by traditional corporate advice.
The distinction between "founder mode" and "manager mode" has significant implications for how businesses are run. Most advice on scaling businesses is directed at managers who didn’t necessarily start the company, leading to a one-size-fits-all approach that doesn’t suit the needs of founders. Founders have a unique connection to their business, and when they adopt the hands-off "manager mode" strategy, they often feel like they’re being gaslit—told to step back when their instincts are urging them to stay involved.
In a world where founder mode is often undervalued, Blinc is here to support those who want to stay engaged with the core of their business. Get incorporated today at blinc.today/register!