Founder Mode: My 20 Years of Experience Stuck In It!

Today, I want to dive deep into a topic that's been a defining part of my entrepreneurial journey: founder mode.

It's a concept that Paul Graham recently wrote about, and it resonates deeply with my two decades of experience as a startup founder.

I want to tell you about my experience and some things I have learned along the way on how to harness my founder mode superpower!

What is Founder Mode?

Founder mode is that relentless, high-energy state where we're constantly pushing forward, making quick decisions, and taking risks. It's characterized by:

• Hands-on involvement in every aspect of the business
• Willingness to make rapid decisions
• High-risk tolerance
• Extreme ownership of the company's success

This mode is essential in the early stages of a startup, especially when you're trying to hit that first million in revenue. It's about betting the farm, cashing out your 401k, quitting your job, and doing whatever it takes to make your vision a reality.

I've lived in this mode for twenty years, and let me tell you, it has its strengths - but also some significant pitfalls.

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The Double-Edged Sword of Founder Mode

In the early days of a startup, founder mode is crucial. You're wearing all the hats, making every decision, and pushing hard to turn your idea into a successful business. But as your company grows, this same mindset can become a hindrance.

Here's a personal story that illustrates this: At Stackify, my COO, Craig Ferril, handed me a book called "Rocket Fuel."

Craig explained that while I had a million ideas and was running around the company telling everyone what to do, people didn't know how to handle it. One day I'd have one idea, the next day another. This constant flux was causing people to freeze up, unsure of what to do next.

His message was clear - my constant stream of ideas and rapid-fire decisions were paralyzing the team. They didn't know which direction to move in because I was changing course so frequently.

The lesson? Even in founder mode, we need to learn how to work with others effectively.

The Challenges of Scaling with Founder Mode

As your company grows, staying in constant founder mode can create significant challenges:

1. Difficulty delegating and trusting others
2. Micromanagement tendencies
3. Resistance to structured processes
4. Potential for burnout
5. Confusion among team members about decision-making processes
6. Inability to build a strong leadership team

I've faced these challenges firsthand. Recently, our COO at Full Scale, Darrell, gave me similar feedback to what I received at Stackify. He pointed out that people were unsure about who to ask for decisions - me or someone else. This uncertainty was causing nervousness and inefficiency in our operations.

It's a clear sign that I need to adjust my approach as the company scales. The very qualities that make founder mode effective in the early stages can become obstacles to growth if not managed properly.

The Importance of Delegation and Trust

One of the biggest hurdles for founders like me is learning to delegate effectively. We're used to being involved in every aspect of the business, but as the company grows, this becomes impossible and counterproductive.

The key is to:

1. Hire the right people
2. Trust them to do their jobs
3. Get out of their way

This is easier said than done. It requires a shift in mindset from "doing everything yourself" to "enabling others to do their best work." It's about focusing on what you're really good at, what you're passionate about, and where you bring the most value to the company.

The Danger of Micromanagement

Closely related to the delegation issue is the tendency to micromanage. When you're used to making every decision, it's hard to step back and let others take the reins.

But micromanagement can be toxic to your team's morale and productivity. It sends the message that you don't trust your employees' judgment or abilities. Over time, this can lead to frustration, disengagement, and ultimately, talent loss.

The Need for Structured Processes

Another challenge for founders in perpetual founder mode is the resistance to structured processes. We often prefer to make quick decisions and move fast, viewing processes as unnecessary red tape.

But as your company grows, processes become crucial. They ensure consistency, reduce errors, and allow for scalable operations. I had a recent conversation with Darrell about implementing a new CRM system. My instinct was to just do it quickly, but Darrell reminded me of the need for proper training and consideration of all scenarios to ensure nothing falls through the cracks.

This is where having a strong operations person is invaluable. They can help throttle your speed when necessary and ensure that all the important details are considered.

The Risk of Burnout

Perhaps the most personal risk of perpetual founder mode is burnout. The constant high-energy state, the pressure of making all decisions, the difficulty in disconnecting from work - all these can lead to physical and mental exhaustion.

I've experienced this myself, and it's not sustainable. It's crucial to find ways to recharge and maintain a healthy work-life balance, even as a founder.

Being Open to Feedback

One of the strengths I've developed over the years is being open to feedback. When Craig told me I needed to read "Rocket Fuel," I didn't get defensive. I saw it as an opportunity to improve.

Not all founders handle criticism well. Some get resistant to taking feedback or considering others' opinions. But this openness to other perspectives is crucial for growth, both personal and professional.

Finding the Balance

So, how do we harness the energy of founder mode without letting it derail our growth? Here are a few strategies I've learned:

1. Partner with a strong COO who can help filter and execute your ideas
2. Focus on areas where you add the most value, and delegate the rest
3. Trust your team and resist the urge to micromanage
4. Be open to feedback and willing to adapt your approach
5. Implement structured processes where necessary, but maintain agility
6. Take time to recharge and avoid burnout

Founder Mode in Larger Companies

Interestingly, Paul Graham suggests that some big companies could benefit from a dose of founder mode. We've seen this with Elon Musk's recent acquisition of Twitter (now X). While controversial, it demonstrates how even large companies can move faster and more decisively with a founder's mindset.

Musk's approach at Twitter/X is a prime example of founder mode in action. He's moving fast, breaking things, and not afraid to make big decisions. Is he doing everything perfectly? No. But he's proving that even large companies can move at a startup pace when necessary.

The key is finding a middle ground - maintaining the energy and decisiveness of founder mode while building a structure that allows your company to scale. It's about knowing when to push hard and when to step back and let your team take the lead.

Wrapping Up

Being in founder mode for 20 years has taught me a lot. It's a powerful force for driving a company forward, but it needs to be tempered with self-awareness and a willingness to adapt as your company grows.

For those of you who recognize yourselves in this description, I hope sharing my experiences helps you navigate your own founder journey more effectively. Remember, the goal isn't to completely abandon founder mode - it's to evolve it as your company grows.

Founder mode, when balanced with strong leadership and effective delegation, can be the secret sauce that keeps your company innovative and agile, even as it scales. It's about maintaining that entrepreneurial spirit while building a sustainable, growing business.

Keep hustling, but don't forget to build a team that can hustle alongside you.