Every position or title comes with it is Pros and Cons in a start-up, even CEO or Founder whatever you call it. Let us first look at the CEO’s Pros and Cons:
Pros of being a CEO:
1. Salary: CEO are at the top position in company and thus, earns the highest salary in company. Along with the basic salary, CEOs also earns various other compensation packages in the industry such as bonuses, incentives, and other various pay packages. Also, CEO in companies gets various perks and benefits such as private planes, club memberships, luxury cars, personal travel etc.
2. Freedom: CEO of the company have the freedom to set their own schedules and define the strategies of organization. The CEO of the company holds the ultimate power to take all the important decisions in the company. CEO also holds the ability to delegate the tasks among other managers of company.
3. Reputation: Holding the position of CEO in company provides reputation to the individual in the company as well as society. This provides valuable opportunity to individual to carry out various projects with higher reputation and acceptance from the members of society. Also, CEO in the company holds higher authority than other staff members in organization. CEO knows about the whole operations of company and is also more informed about the market conditions of business environment. Also, CEO holds complete information about the financial and operational position of business which increases the experience of individual.
4. Teamwork: CEO holds large number of people under him and every task is completed in team collaboration which creates higher harmony among the staff members of the company.
Cons of being a CEO:
1. Pressure and criticism: The main limitation of becoming a CEO is higher work pressure and criticism from various lower level staff members. This also results in loneliness being faced by CEO of the company. Lot of work pressure results in higher stress level being faced by CEO. Also, there is no one with whom CEO can discuss the problems in company operations.
2. Lawsuits: CEO may face various lawsuits in case of unethical behaviour taking place in the organization and in the case of manipulation in financial records of the company. Further, there is not always the win situation in the company. customers or ex-employees of the organization may post various negative comments about the working or behaviour of CEO of company.
3. Face of the company: CEO of the company holds reputation due to the name of the company. however, the advantages hold by the CEO in company may turn out to be negative when the company faces financial set back.
4. Lot of paperwork: There is lot of paperwork and hiring and firing duties involved in holding this position in company.
5. Tight and busy schedules: The CEO faces huge problems due to its tight and busy schedules. CEO is responsible for various operations in company which causes huge burden upon the company. Also, CEO must ensure that all operations of the company are completed and managed in the limited time frame.
6. Higher stress: Huge work burden upon the CEO of company results in higher stress and anxiety. Also, lot of work pressures results in various sleepless nights. Work pressure also distracts the CEO from their personal, family, and societal life.
Pros of being a founder:
1. You can move faster: When you can decide without consulting others, you can do it quickly and move on with make that decision a reality.
2. There is less drama: There are countless stories of co-founders butting heads and fighting over all the decisions. Egos can get out of control quickly. Co-founders can disagree strongly on where to take the company long term. Many times, that ends with a less-than-amicable split that puts the company at risk.
3. Clearer direction: When you have only got one person steering the ship, it is clearer where it’s heading and who’s in charge. When a company lacks clear direction, it is much harder for everyone on the team to know what to focus on.
Cons of being a founder:
1. You will get tired of making so many decisions: Decision fatigue is a real thing and when you are the sole person making every single major decision, it is draining. It is easy to make bad decisions because you are only tired of making any decision.
2. Every move comes back to you: There is a lot of weight resting on your shoulders and that can get heavy. Day after day of wondering if you did/did not make the right decision will wear on your psyche.
3. Hard to brainstorm big ideas: When you are thinking big picture, having a couple of other co-founders to hash out an idea or talk through why something may or may not work, is beneficial. You do not have that as a founder. Sure, you can have others on your team to do that with, but it is less effective.
4. Seeing different perspectives is difficult: Most people have an area of expertise or at least a certain area they gravitate towards. For me, I am a product guy. I default to focusing on the product before anything else. On some days, that is great. On others? Not so much. Some problems would be better solved if I were stronger around sales. Other problems would be easier to tackle if I were great on the technical side of things. When you have got co-founders across different areas of expertise, you are able to pull all those perspectives together and have a much more holistic view.
5. It is just lonely: You will spend so much time in your own head, overthinking, overanalysing, and internalizing every little thing, with no great way for getting that out.
6. It is extremely easy to make bad decisions: When you are going at it solo, you can quickly get caught up in a bad idea and just run with it. You don’t have anyone to tell you that it’s a really stupid idea, leaving you vulnerable to getting distracted by things that won’t help your company (or worse, actually hurt it).
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath