Founder Mode Can Fail Your Business — Lead This Way Instead

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Opinions expressed by Entrepreneur contributors are their own.

In a September 2024 blog post, Y Combinator’s Paul Graham describes the merits of a hands-on leadership style where founders are deeply involved in every aspect of their company’s operations. The method has been touted by some — like Elon Musk and Airbnb’s Brian Chesky — as the secret to their success.

But here’s the reality: Founders are just people. They’re not magical, infallible beings, and this glorified approach to leadership can often do more harm than good. Instead, I believe founders should focus on developing a culture of kindness, candor and enablement among their employees. This approach has more power to create a lasting business than founder mode ever could.

The dangers of founder mode

The idea behind founder mode is that a founder’s passion, knowledge and sense of urgency are irreplaceable — something that managers or other leaders simply can’t replicate. While this may hold true in certain instances, it’s dangerous to assume that a founder’s involvement is always beneficial. In fact, when founders inject themselves into every decision, it can often lead to costly mistakes.

When my team and I were building hardware for our first product company, we made an “optical” decision to push the hardware out faster than we should have. The results were less than stellar. We wasted money on overly complex equipment that failed quickly, leading to expensive rework and a damaged timeline. Sure, the decision may have created short-term momentum, but in the long term, it was unsustainable. This is the dark side of founder mode: Sometimes founders, in their urgency, make decisions that are reckless, simply because they can.

Graham argues that founders should remain involved to avoid becoming too disconnected from the realities of their company. While I understand the appeal of staying connected, glorifying this mode can create toxic leadership patterns that encourage founders to act impulsively without considering the long-term consequences.

Founders aren’t superhuman and that’s a good thing

Founders aren’t uniquely equipped to handle every challenge their company faces. We struggle at some things and we’re good at others, just like anyone else. The idea that founders should continually make risky, hands-on decisions is not only egotistical but can also lead to mismanagement, especially as companies scale. As startups grow, founders need to focus less on being the hero who solves every problem and more on building teams that are empowered to make the right decisions.

This doesn’t mean stepping back entirely — it means understanding your limitations and letting go of the belief that you’re the only one capable of making the big calls. It’s about moving from being the savior of the company to becoming the person who sets the vision and empowers others to execute it.

The importance of building a culture of kindness

In place of founder mode, I propose a different approach to leadership, one based on kindness and respect. Startups are notoriously high-pressure environments where overwork is often seen as a badge of honor. But it doesn’t have to be this way. Founders can create a culture of kindness — one where employees feel respected, appreciated and supported, even in challenging times.

Kindness isn’t about being overly generous or indulgent; it’s about basic decency. As a founder, this means recognizing that the timelines and pressures you create are often arbitrary. It’s important to acknowledge the humanity of your team and lead with empathy. That starts with respecting personal time, honoring commitments to mental health and understanding that your team’s well-being is crucial to the success of the company.

At every company I’ve led, we’ve long emphasized that extra work outside of normal hours should be taken on by the people with the most to gain. If there’s urgent work, that’s what equity is for — it compensates founders and employees for the risks and additional time they put in. Employees without equity, on the other hand, should not feel the weight of unrealistic demands without compensation or support. If I absolutely need my employees to work outside of our normal hours, they are paid overtime.

Lead with empathy over ego

In a world obsessed with founders, it’s easy to get caught up in the myth that founders are somehow different from everyone else. But it’s time to debunk that notion. Founder mode might work for a handful of high-profile leaders, but for most startups, it’s a recipe for burnout and bad decision-making. Instead of trying to do it all, founders should focus on empowering their teams and leading with kindness.

The best leaders aren’t those who heroically intervene in every problem, but those who create an environment where others can thrive. As startups face increasing pressure to deliver results quickly, founders would do well to remember that sustainable success comes from building strong, empathetic teams — not from acting as a one-person savior.

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