The Differences Between A Founder Vs. Co-Founder
You’ve probably heard the terms founder and co-founder tossed around in conversation. What do they mean? And what is the difference between them? It’s time to figure out the meaning behind who and what founders and co-founders are.
Who Is A Founder?
A founder establishes a business. They can also be known as an entrepreneur, and in the case of a charity foundation or non-profit organization, they’re called a philanthropist.
The duties of a founder include:
Coming up with workable and profitable ideas for a company
Deciding the services and products the company will offer
Coming up with a business model
Acquiring workforce and other required resources
In a nutshell, the founder’s primary responsibility is to ensure that the organization is successful and profitable. Many people count on them to lead the business until it can stand independently. To learn more about finding an entrepreneur mentor, click this link.
Who Is A Co-Founder?
A co-founder is an individual who establishes a business with the founder or helps the founder develop the idea for the company. Often, the co-founder has the resources or skills the founder may lack to implement their vision for the business. These could be technical skills, business experience in startups, or investment of resources and capital.
A co-founder could be an existing company, an engineer, an entrepreneur, a venture capitalist, a web designer, a web developer, or another professional who can lend their expertise to the business. Click this link to learn about the differences between a chief accounting officer vs. chief operating officer (CAO vs. COO).
What Is The Difference Between A Founder And Co-Founder?
Typically, a founder is a person who defines the idea for the business. But they may not have adequate human or financial resources or lack the skills needed to start the company.
A co-founder is an individual who helps the founder in starting a business. They take on the challenge and responsibility of turning it into a successful business venture.To get a better understanding, let’s look at Facebook.
Mark Zuckerberg started Facebook during his college days, and initially, he limited access to Harvard University students. When Zuckerberg wanted to expand his business model, he asked his friends for help.
His fellow students included Dustin Moskovitz, Eduardo Saverin, Andrew McCollum, and Chris Hughes. These four handled significant responsibilities and are known as Facebook’s co-founders.
Responsibilities Of A Co-Founder
Being a co-founder is a daunting job. A co-founder handles the initiation of a business and tracks its progress. Here are some responsibilities of a co-founder. But remember, these can vary widely depending on the company’s particular niche, the scale of production, and initial investment.
Identifying Market Opportunities
Although the founder is often the brain behind the business, the co-founder is the person who deals with go-to-market scaling and plans. They find areas of opportunity where products can get maximum traction and assess the big-picture view of the proper marketing strategy for targeting the desired audience.
Developing The Final Product
Co-founders typically join the board before the product launch and work with the founder to improve the product by taking feedback during the beta and minimum viable product (MVP) stages.
Guiding The Board Of Directors
Since the co-founder is among the most significant shareholders of the business, they often decide the type of panel and the entire process that governs the board. So they must balance the board while also fostering smooth communication to key stakeholders.
Recruiting Qualified Employees
Human resources contribute to the company's value and help foster development. Thus, co-founders must hire as much talent as possible for the startup to succeed. Teams embracing hard work, an entrepreneurial spirit, and consistency are essential in a startup.
Focusing On KPIs
Successful co-founders closely monitor key performance indicators (KPIs) while assessing the organization’s productivity. The picture of the business the KPIs paint is vital in decision-making.
Business Planning
A co-founder also develops a business plan including all the company's short- and long-term goals. This business plan must consider all possible risk scenarios, including competitive strategies for resolving those situations.
Making Financial Decisions
The co-founder scrutinizes all financial decisions before making any final business decisions. Under-utilization of resources is a nightmare for early-stage startups, so the co-founder ensures the adequate use of resources to ensure company growth and success.
Final Thoughts
A founder is an individual who has an initial idea and starts a business. A co-founder goes along with the founder’s initial vision and helps the new business succeed.
There may be cases where each member of the founding duo is equal in obligations and rights. However, the founder’s and the co-founder’s duties must diverge to help the partnership flourish.
Be sure to define these responsibilities from the get-go. Divide obligations and chores depending on individual skills and strengths. Taking the time to do so will create the strong foundation you need for your business to thrive.