Happy Tuesday. In today's show, I share my thoughts on the newest meme in technology and entrepreneurship: Founder Mode. For more: How To Raise Millions For Your Startup in 60 Days | Youtube
Hey! I hope you enjoyed your extended Labor Day weekend. I spent mine in the Pacific Northwest and thinking about Paul Graham's Founder Mode essay. While I agree with several points, especially for the best founders, I think we need to take a step back.
Not all founders are Steve Jobs, not all managers are John Sculley, and not all companies are Apple. Some companies may be better off in manager mode, or some kind of tweaner focus where you are not the founder that takes themselves so seriously! If you read it too, I'd love to hear your thoughts.
Today's episode and memo dive into Paul Graham's viral Founder Mode essay. Let's unpack its key points, examine its implications for startup culture, and discuss why it might not be the universal solution it's being presented as.
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The Essence of Founder Mode
Paul Graham's essay on Founder Mode has taken Silicon Valley by storm. Here are a few key points:
Contrast between founder-led and manager-led companies
Critique of professional managers and MBAs
Examples like Steve Jobs and Brian Chesky as great leaders
Graham argues that founders often feel gaslit when told to run companies like managers. He suggests that "Founder Mode" - a more hands-on, visionary approach - leads to better outcomes.
The Risks of Over-Indexing on Founder Mode
While there's merit to Graham's arguments, I believe we need to be cautious about applying these principles universally:
Not all founders are visionaries: Early-stage startups often need solid operational skills more than grand visions.
Success stories of manager-led companies: Look at Uber under Dara Khosrowshahi or Microsoft under Satya Nadella.
The danger of emulation: Young founders of small startups shouldn't try to lead like Steve Jobs or Brian Chesky prematurely. I think this is where the cultish brand of PG and his essays can do a lot of damage. How can you optimize for founder mode when you are in survival mode as many founders are until they reach a certain revenue or fundraising round that validates and de-risks their business?
What Matters for Early-Stage Startups
If you're running an early-stage startup, here's what I think you should focus on instead of worrying about "Founder Mode" (PG is in no way saying these things do not matter and he has likely written essays about many of these topics before)
Cash Management: Keep enough cash in the bank to reach your next milestone.
Product-Market Fit: Or in YC speak, “Make Something People Want” and understand and solve real problems for your customers. This is a priority over any type of founder-mode strategy for leading a team
Customer Service: Talk to customers, handle support tickets, learn, and iterate. If founders are doing this they will set an example and the best leaders lead by example not with overly aggressive micro-managing. If you are really in the weeds you can answer some support tickets and make a couple hundred cold calls a week.
Team Building: Hire slow, fire fast, and build a strong core team. Founder mode is more for when you have built out a team at scale, the example PG uses references Steve Jobs and his 100-person retreat.
Remember, even the most successful founders didn't start in "Founder Mode" - they grew into it as their companies scaled.
The Takeaway
While Paul Graham's essay offers valuable insights, don't get caught up in trying to emulate the management styles of billion-dollar company CEOs. Focus on what matters most for your stage of growth, and let your leadership style evolve naturally as your company grows.
As I said in the episode:
"In all in all, think founder mode's a great thing. It went viral, it got a lot of traction, but don't over-index on trying to do founder mode. You'll end up in flounder mode and you won't be successful with your company."
What do you think about Founder Mode? Hit reply and let me know your thoughts!
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Flounder Mode: A Critical Look at Paul Graham's Viral Essay