I’m sure you’ll agree with me that starting up a business from scratch and making it successful is no child’s play. Startup businesses often require a lot of commitment, market research, decision making, and many more. According to Bill Gross, the founder of Idealab, five key factors influence the success of startups; they include the team, idea, capital or funding, business model, and timing.
Apart from these five things, another factor that could influence the success of a startup business is leadership. Every new business needs a CEO – someone who’ll be responsible for the success or failure of the company. But, here’s a burning question; is it a good idea for a startup to have two CEOs?
It’s okay for a startup business to have two CEOs. At least, some companies have taken the approach in the past, while some are still doing that now. However, it would help to keep in mind that going for two CEOs isn’t for all businesses.
What are the roles and responsibilities of a startup CEO? Can a startup have two CEOs? What are the strengths and weaknesses of having two different CEOs for startups? What is the best way to bring in a new CEO for your startup? These and more are the frequently asked questions you’ll find answers to as you read through the rest of this article.
Understanding The Roles And Responsibilities Of Startup CEOs
Chief Executive Officer or CEO is the top position in every organization. As earlier mentioned, every startup needs a reliable CEO who’ll be readily available to oversee all the activities in the company. If the new business is achieving success or failure, the CEO is usually responsible for it.
One of the many functions of a startup CEO is to make sure that the business succeeds irrespective of the challenges being faced. Some others include meeting investors for funds, managing the available revenue, setting up the company’s goals, and building a stronger team to make the startup better. That said, let’s take it one at a time and understand the functions of startup CEOs below.
- Recruitment
One of the many roles of a startup CEO is to recruit talents into the company.
I’m sure you know that every business will, at one point, need people to grow better. Finding top talents to fill specific positions is usually handled by several different departments for more prominent companies. However, that’s not the case for startups.
In most cases, a startup CEO is usually responsible for everything regarding hiring new people to the company. Of course, the role of the CEO also includes understanding the business, knowing the position in the company that needs people, and employing the best candidate for the job.
- Building a strong team
Apart from recruiting talents, another responsibility of a startup CEO is to build a strong team for the company.
If you don’t know, most venture capitalists often look for five key factors in a startup. These include leadership ability, innovative product or service, proof of concept, market, and a strong team.
According to Tatyana Gray’s interview with Sam Bernards, a famous Utah venture capitalist and partner at Peak Ventures, it’s revealed that having a solid team is one of the essential factors that venture capitalists look for in startups. When asked about the 5Ts of finding a good investment for a startup business, here’s what Bernard said about having a solid team; “the people. This 80% of the decision is on just this one T, the team. It’s the team that means everything.”
Having a solid team is a must for every startup business. And of course, it’s the responsibility of the CEO to make sure the company has a strong team.
- Cash flow
Keeping a healthy cash flow going is one of the effective ways to achieve success with a startup business. As a startup company, running out of money is something you need to avoid. This is one of the responsibilities of the CEO – to manage the company’s revenue, expenditure, and funds from investors.
- Management of investors
Another function of a startup CEO is to keep the company’s shareholders informed about happenings in the company. A good CEO should have a list of all shareholders in the company and be consistent in sending updates regarding the progress of the business.
Can A Startup Have Two CEOs?
Here’s one of the frequently asked questions by entrepreneurs regarding having CEOs for their startups – “is it possible to have two CEOs?”
To answer this question, I’ll say yes and no. Of course, you can always have co-CEOs for your startup business. If you’re considering having two CEOs, the truth is you won’t be the first person to adopt this approach.
Although having startup co-CEOs has some advantages, you also need to understand that this move also has its drawbacks. What you’ll get, good or bad, will depend on the time you decide to implement this strategy.
For instance, imagine you’re just starting your own business from scratch with little or no experience but just the idea. Being a first-time CEO, you’ll most likely find it pretty hard to run the company, as you’ll face a series of challenges. In this case, one of the best things to do is share the load with another person. Here’s one of the many reasons why some entrepreneurs choose to have two CEOs for their startups.
That said, the bottom line is that you can always have two CEOs for your startup business. But it would help if you kept in mind that it takes a lot of effort, time, respect, and understanding for this approach to work.
The co-CEO strategy is working for a couple of companies out there, such as Netflix and Freewill. However, I’m not going to advise you to do that for your startup business, as the approach often comes with tons of issues.
What Are The Strengths And Weaknesses Of Having Co-CEOs For Startups?
As previously mentioned, having two startup CEOs has its advantages and disadvantages. Many startup businesses don’t know when to choose two CEOs for their business – this is why they face several different issues with the co-CEO approach.
If correctly done, using two CEOs can offer startup businesses tons of goodies.
That said, you can check below to see some of the pros and cons of having two chief executive officers for a startup business.
Advantages Of Having Two Startup CEOs
According to the famous saying, it’s pretty much impossible to be in two different locations at a time. Although that’s the fact, you need to understand that this isn’t true when you have two CEOs for your startup business.
Here’s the thing; some businesses require several different departments, and having a single person to oversee all of them may slow down the company’s growth rate. By having co-CEOs, the roles and responsibilities can always be divided according to the strengths of the two CEOs. This will allow both of them to work faster without worrying about other parts that don’t concern them.
When it comes to having two CEOs, Freewill is one of the few companies doing well. According to the company, embracing this approach has been of great help to them. With two CEOs, each of the chief executive officers will only focus on the roles they are good at performing.
As long as both CEOs are willing to respect one another and allow each other to make decisions when it matters, this approach will indeed work for startups.
Furthermore, you’ll agree with me that no matter how good someone is at doing something, it’s still possible to make a few bad decisions. By having someone else, incredibly complete ownership and knowledge of your company, decision-making will undoubtedly get better for the startup business.
Having co-CEOs for a startup business also means that the company will have twice the CEOs to check on customers, shareholders, and prospects. What that means is that your business can always be in two different places at a time.
That’s not all; having two startup CEOs also means that there’ll always be someone available to keep watch of all the happenings at the workplace. Here’s why; one CEO can always run around to meet customers and prospects while the other stays in the office to oversee things. With the co-CEO approach for startups, it’ll become easy for you to take a break from the office.
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Disadvantages Of Having Two Startup CEOs
You already know that having two startup CEOs comes with a couple of benefits. However, it’s worth noting that going for two CEOs for your startup business also has its setbacks.
Here’s a few quick questions; what if your co-CEO has a different work ethic than yours? What if your co-founder has a different feeling about work standards and ethics? What if you and your partner have little or no respect for each other? These are some of the factors that make having two CEOs hard for startups.
First, if you and your co-founder have different feelings about work ethics and standards, it could hinder the progress of your business. Both of you will be under a lot of pressure to perform your roles at work. That’s not all; even the performance of your staff will be affected, which will reduce the company’s overall productivity.
Apart from work ethics, another drawback of having two CEOs for your startup business is that “work balance.” Here’s what I mean; when one of the CEOs starts feeling like they work better and harder than the other, it could affect the company’s overall productivity. To avoid this type of issue, both of you need to understand and respect each other.
Here’s another quick question; what if you’re always willing to take a risk, but your partner doesn’t? If this happens, there’s a big chance that it’ll affect the success of the business. However, there is a way you can always avoid this type of issue. All you need to do is have an early discussion with your partner and understand why taking a risk, or not is worth it for the company.
What Is The Best Way To Bring In A New CEO?
Now, you’ve got a clear understanding of the advantages and disadvantages of having two startup CEOs. So, what do you think? Are you going to bring in a new CEO to work along with you?
If you’re considering bringing in a co-CEO to work with you, you might want to know the best way to do that. Here is a couple of what you need to put in mind when transitioning to two CEOs:
- Choose a CEO that understands the strategy for the startup
Since you’re considering bringing in another CEO to your startup, the first thing I’ll advise you is to determine the strategy for your startup. After that, you need to go for a CEO who understands and can work with the process. This way, you’ll be able to address the issue of work standards and ethics, which I mentioned in the previous section of this post.
- Collaboration matters
When choosing a co-CEO for your startup, ensure you choose one based on collaborative, leadership, and interpersonal skills. By doing this, you can always work with each other without having issues. The startup business will only achieve success if the two CEOs understand and respect each other.
Conclusion
Can a startup have two CEOs? Yes, startups can always go for two CEOs. Having two CEOs means there’ll be a better decision-making process at the company. That’s not all; it also means that it’ll become pretty much easy for the company to manage multiple product lines.
But for your business to enjoy all the goodies of having CEOs, you need to understand and respect each other. No CEO is superior or better than the other – once this is clear from the beginning, the possibility of making it with the co-CEO strategy is high.
Quick Answers To Frequently Asked Questions
What do Jeff Bezos and Larry Ellison have in common?
Jeff Bezos and Larry Ellison are both talented at being professional CEO who has made a significant impact in the business world. Both men are originally from New York, and they both attended Ivy League schools. Bezos graduated from Princeton University, while Ellison attended Cornell University. Both men went on to become highly successful in the tech industry, and they are now worth billions of dollars.
However, there are also some significant differences between the two men. Bezos is the founder of Amazon, while Ellison is the co-founder of Oracle. Amazon is a much larger company than Oracle, and it is one of the most valuable companies in the world. In contrast, Oracle is a smaller company that focuses on enterprise software. Despite their different areas of focus, both Jeff Bezos and Larry Ellison have had a tremendous impact on the tech industry.
Did Steve Jobs ever work with Marc Benioff?
According to public records, Steve Jobs and Marc Benioff have never worked together in any capacity. However, both men have been directors and been a board member for various companies. In addition, both men have served in the highest leadership role for their respective companies. Steve Jobs was the founder and CEO of Apple, while Marc Benioff is the founder and CEO of Salesforce. While it is possible that the two men may have crossed paths in their professional lives, there is no evidence to suggest that they have ever worked together.
What is the opinion of the Harvard business review with regard to Sergey Brin?
In related articles for the Harvard Business Review, Keith Block argues that Sergey Brin’s decision to step down from Alphabet is a positive move for the company. Block cites Brin’s “passion for big bets” and “disruptive thinking” as key factors in Alphabet’s success, but notes that his resignation will allow other leaders to take a more hands-on role in the company’s day-to-day operations. Block also praises Brin for his transparency about the reasons for his departure, and argues that his decision to move to San Francisco is a sign of confidence in Alphabet’s future. Ultimately, Block argues that Brin’s decision is a positive step for the company, and that Alphabet is well-positioned to continue its success in the years to come.
What is the founder CEO role in a CO SEO model?
ceo is responsible for the day to day running of the company and reports to the board of directors. He or she makes sure that the company meets its goals and objectives and carries out its business strategies. The ceo also has to make sure that the company complies with all the laws and regulations that are relevant to its business. In addition, the ceo is responsible for managing the company’s finances and for making decisions about investment and expansion. The ceo position is a very demanding one and requires a great deal of experience and knowledge. In a large company, the ceo may also have to deal with shareholders, analysts, and other stakeholders.
Did Goldman Sachs start off as a small business?
Goldman Sachs is a large investment bank that offers a variety of financial services. It was founded in 1869 by Marcus Goldman, a German immigrant, and his son-in-law Samuel Sachs. The company started as a small private partnership and soon became one of the leading financial firms on Wall Street. Today, Goldman Sachs is one of the largest private equity firms in the world. Lloyd Blankfein has been the chairman and chief executive officer since 2006.
How are strategic decisions made in CO CEO relationship?
In a CO CEO relationship, strategic decisions are made through a process of give and take. Each senior executive brings their own ideas and perspectives to the CO CEO model, and they work together to find common ground. This can be a challenge, as each CEO has their own vision for the company. However, it is essential to find a way to compromise in order to make the best decisions for the company. One way to do this is to set aside time each week to discuss strategic issues. This gives each CEO a chance to share their thoughts and ideas, and it allows them to come up with creative solutions that benefit the entire company.
What do Elon Musk and Larry Page have in common?
Elon Musk and Larry Page are two of the most successful entrepreneurs of our generation. Both men have founded companies that have changed the world, and their businesses are worth billions of dollars. But what do they have in common? According to Matt Blumberg, the answer is focus. In a recent blog post, Blumberg argues that both Musk and Page have an incredible ability to focus on their goals and achieve them. He points to their companies, Tesla and Google, as examples of this. Both Tesla and Google are constantly innovate and expanding into new areas, but they do so with a clear focus on their overall mission. As a result, they have been hugely successful. While not everyone has the same level of focus as Musk and Page, we can all learn from their example and try to apply it to our own lives.
When did Henry Kravis become a business owner?
Henry Kravis became a business owner when he co-founded Kohlberg Kravis Roberts & Co. (KKR) in 1976. Prior to that, he had worked as an investment banker and chief operating officer at Bear Stearns. KKR is a private equity firm that specializes in leveraged buyouts, meaning that it finances the purchase of companies using a combination of debt and equity. In the 1980s, KKR became famous for its involvement in some of the largest leveraged buyouts in history, including the acquisition of RJR Nabisco and Safeway. Today, KKR remains one of the leading private equity firms in the world, with over $200 billion in assets under management.
Does the vice president make more critical decisions than the chief executive officer?
It’s no secret that the vice president has a lot of responsibility. In many cases, the VP is responsible for making critical decisions that can affect the entire company. For example, at Warby Parker, the VP is responsible for making sure that the company’s finances are in order by the chief financial officer. The VP also has to be able to make difficult decisions quickly and efficiently. However, it’s important to remember that the CEO is ultimately responsible for all of the company’s decisions. The CEO is the one who sets the company’s overall direction and makes sure that all of the employees are working towards the same goal. In many ways, the CEO is the most important person in the company. Without a strong leader at the helm, it would be very difficult for a company to succeed.
Glossary
A CO CEO arrangement is when two people are the president and CEO of the company, but they combine their work. This is often because one person is more interested in finance/operations and the other is more deeply involved in marketing/product development. This can create a good balance between the skills necessary for running an organization.
A co founder relationship is an agreement between two or more founders, wherein one startup founder agrees to provide capital, and another agrees to work toward a common goal. This often takes the form of a limited liability company in which one member owns more shares than the other(s).
A tech startup entrepreneur realizes they have an idea for a technology-based business and decide to build that company.
An equity split is a way of sharing ownership or profits from a company. Each owner will have their shares in the company, which they can buy and sell as they please.
The founding CEO role is to start the company, protect it, and maintain its integrity. The role is often seen as a highly strategic and vital position in high-growth startups.
An equity investor is a person or entity that invests in stocks, stock mutual funds, bonds, and other investment vehicles. Equity investors are usually individuals with disposable income who want to build wealth over time for retirement.
A technical co founder is someone with the technical skills to develop, launch and upgrade a product. They also need to know how software development works to understand what it needs from a non-technical cofounder, such as when it comes to drawing up plans for future growth or even knowing about the cost of building new features.
A venture capital (or VC) fundraising is financing a business by attracting investments from venture capitalists. Venture capitalists are investors who provide capital to start-up and early-stage companies in exchange for equity or convertible debt securities.
A co CEO structure is when the CEO shares power with another person. For example, the founding team CEO could be a female, and her male partner could be her co-CEO. This co-inclusive model of multiple co-founders’ structural arrangement is one way for married couples to share executive responsibilities without sacrificing their partnership.
An angel investor is a wealthy individual who invests their own money in a company because they are interested.
A serial entrepreneur has successfully started two or more companies and employs the same innovative, strategic management theory in each early-stage company or early-stage startup owned.
An executive coach is somebody who provides confidential, one-on-one guidance to a senior-level leader. There can be many kinds of coaches, and Forbes describes the following three: leadership coach, time coach, and performance coach.
Corporate governance is when a company leadership team will put many of its policies, rules, and company culture and who has specific titles within their organization. Such things would include the CFO, secretary, board members, and maybe even a CEO or COO. Somebody with that title then manages over these roles.
Silicon Valley got its name from the material originally used to make semiconductors and integrated circuits, which happens to be silicon. The region has come to signify some of the most innovative technological and economic developments of our time, so much so that a recent documentary on ABC called it “the Innovation Capital of the World.”
