Day#3 Why You Should Never Think Like a CEO in Your Startup and Always Think Like a Founder

Let’s talk today about why you can’t build your company like a CEO

The mindset of a CEO and a Founder differs drastically simply because they have different life goals and ways of thinking.

Here are 5 key differences in the mindset of a CEO vs. a Founder

• Focus on Vision vs. Focus on Operations
  Founders are typically focused on creating the long-term vision and mission of the company, laying the foundation for its future. CEOs, on the other hand, are more involved in daily operations and management to achieve short-term goals.
• Entrepreneurial Flexibility vs. Structured Management
  Founders are generally more flexible and inclined to experiment, taking risks and adapting to changes. CEOs work in a more formalized environment, establishing processes and systems for governance.
• Personal Attachment vs. Professional Responsibility
  Founders often have an emotional connection to the company, viewing it as their “baby.” CEOs see the company as their job, where it’s important to follow corporate standards and be accountable to shareholders.
• Innovation vs. Optimization
  Founders are more focused on innovation and seeking new ideas for business growth. CEOs usually concentrate on optimizing existing processes and improving efficiency.
• Creating Culture vs. Managing Culture
  Founders create the company’s culture from scratch, shaping its values and identity. CEOs maintain and develop the existing culture, ensuring it aligns with the company’s goals and evolving conditions.

What risks does a CEO face?

When you hold the position of CEO, you don’t really risk much. You have a stable salary, plenty of bonuses, fixed working hours, paid vacation, excellent insurance, and perhaps even a small percentage of company ownership as a reward for staying 3 or 5 years.

In today’s job market, CEOs are highly sought after, especially those with proven track records. Even for an average CEO, finding a new position with strong benefits and guarantees is relatively easy, given their experience and network. Companies value experienced CEOs for their leadership skills and ability to steer businesses through challenging times, making them attractive candidates for new roles.

Additionally, the high demand for executives means they often receive substantial severance packages, making the transition between jobs more comfortable. This security makes the career risk for CEOs significantly lower compared to founders, who risk losing everything in their entrepreneurial ventures.

What Risks Does a Founder Face?

A founder risks everything: money, time, health, and reputation. Unlike a CEO, who enjoys stability, founders constantly balance uncertainty and responsibility. Here's a breakdown of these risks:

• Financial Risk: Founders often invest their own savings or take loans to fund the company, which means the potential for losing all their money if the business fails.
• Time Commitment: Founders work around the clock. There are no weekends or holidays because the startup demands constant attention, and they are typically the last to get paid after ensuring employees are compensated.
• Health: The 24/7 commitment can take a toll on mental and physical health, with stress being a constant companion.
• Reputation: A failed business can hurt a founder's reputation, impacting future ventures or partnerships.
• Ultimate Risk: The biggest risk is walking away with nothing, despite years of hard work and dedication.

Founders often carry a laptop everywhere, always mentally engaged with their business, no matter the location—bed, car, gym, or pool. This dedication can sometimes blur the line between personal and professional life, increasing the pressure even more.

The conclusion is clear

In the early stages of a company’s development, you simply cannot think like a CEO; you must think like a Founder. It doesn’t matter if you’re building the project with your own funds or have already secured a round of investment.

“The Founder is a creator, experimenting and taking risks to bring something new into the world. The CEO is a manager, ensuring stability, structure, and growth.”
— This quote reflects how Founders are more comfortable with risk and ambiguity, whereas CEOs focus on stability and scaling an established product or company.

As a Founder, you cannot overlook anything. Every detail matters, and you need to personally verify everything — from ensuring your product works flawlessly to checking the effectiveness of your marketing campaigns and monitoring the productivity of your sales team. If code needs to be written, you write it. Every delay pulls you further from reaching your goal, so you must remain hands-on and proactive in every aspect of the business. This intense level of involvement and ownership is essential for pushing the company toward success.

P.S. Here is our product — AI RESUME BUILDER. And I share my thoughts in real time during development of our product.

Anton Lytvynov
Founder of LYTVYNOV PRODUCTION, Founder of AI Resume Builder.