People often label the CEO and founder as the same person, but have you ever thought about it?

Organizations and business operations are changing rapidly, and the line between these roles may seem blurry, but both play a unique and critical role in defining organizational dynamism.

There is a common question: "Is the CEO the owner of the company?". No way, no, the answer resoundingly is no.

Let’s break down what really matters about these roles—and why understanding the gap is crucial for companies and business leaders everywhere.

Who is the Founder?

Founders are people who have a high level of personal involvement in the company’s purpose and goals.

The founder is the person who initially came up with the business, took the initial risk, and made the initial vision of the business a reality through a tangible startup.

Driven by passion, creativity, and a desire to solve a challenge or disrupt an existing sector, founders are the backbone of the company. Their action aligns with their talk, their investment in the company’s early days, the recruitment of core team members, and shaping the culture.

In many cases, the founder is also the first CEO, but that isn’t always the case as companies evolve.

Company Founder Responsibilities

Here’s the in-depth analysis of what a founder has under their hats:

• Setting the Vision and Mission: Founders are the ones who establish the foundation for the company’s ideals, cultural values, and even the top goals.
• Securing Funding: The founders seek to raise funds through the solicitation of investors and personal savings to help kickstart and maintain the company during its initial years.
• Product Development: Founders tend to do their work in developing the first product or service, typically undertaking such jobs as coding, designing, or making prototypes.
• Assembling the Team: Founders pick the first team of members who are inspired by the vision of the business and present no problems at the beginning.
• Legal and Administrative Work: From registering the company to sorting out initial agreements and compliance, much of the unglamorous early work falls to the founder.
• Risk-Taker-in-Chief: Founders own the biggest risks—financially, reputationally, and emotionally—while the business is still fledgling.

As the business expands, some founders focus on the board or advisory roles, whereas others remain focused on taking the company into long-term success.

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What is a CEO?

The CEO or Chief Executive Officer sits at the top of the organization and manages day-to-day operations. While founders conceive the first ideas, CEOs are the driving forces that bring those ideas to lasting, financial success.

CEOs may be the founders, but they often aren’t. Often, organizations scout for a CEO who has skills in growth, management, and complicated leadership, who the founder usually leads as the business develops through different phases of its lifecycle.

The board of directors and shareholders usually hold the decision-making power and accountability of a CEO, which ensures the company’s long-term success.

Key CEO Responsibilities

The key CEO responsibilities include:

• Strategic Planning: CEOs chart the company’s growth course, operational strategies, and future direction, translating vision into reality.
• Operational Oversight: They manage the executive team—COOs, CFOs, CTOs—and make sure every department is aligned with corporate goals.
• Decision Making: Final call on major decisions lies with the CEO, whether it’s market expansion, new products, or investment opportunities.
• Stakeholder Communication: The CEO bridges boardroom and business, investors and employees, media and markets. They’re the organization’s chief spokesperson and ambassador.
• Resource Allocation: Responsible for where money, time, and talent are spent for the utmost impact.
• Financial Performance: CEOs ultimately answer for profit, loss, growth, and sometimes even the company’s very survival.

It’s worth noting that top CEOs often come with years of experience and advanced credentials, and they sometimes undergo specialized leadership training to stay on the cutting edge of global business management.

Recommended Read: 8 Key Metrics to Measure the Impact of Leadership Development

Difference Between CEO and Founder

At startups, these roles are often merged—the founder is the CEO. However, as companies grow, the need for specialized skill sets often drives a split.

Recommended Read: Certified CEO Training Program - A great starting point to your leadership journey

How The Taplow Group Can Support CEO and Founder Leadership?

Leadership has become crucial in every organization today. This is where leadership consulting firms like The Taplow Group can be of true value.

Our executive search consultants stand out as a global force in helping organizations recruit, develop, and coach high-performing CEOs and founders.

If you need an exhaustive CEO training program, targeted succession plans, or unique leadership development, The Taplow Group offers tested strategies alongside revolutionary leadership education for CEOs.

Our consultants are sensitive to the intricacies of the founder-CEO dynamic, helping leaders and boards navigate change, debate, or a change in leadership. The Taplow Group offers individual solutions to assist both founders and CEOs in adapting, cooperating, and succeeding.

Final Thoughts

The line between founders and CEOs is much more than semantics – it is crucial to creating a robust, adaptive leadership across your organization in every phase.

The process of development, achievement, and lasting influence becomes essential if one wants to achieve growth, success, and lasting impact, as done by The Taplow Group, for example, by building the right teams and investing in leadership development.

Take a call and consult our executive search consultant for your organization’s sustainable growth & success.

Frequently Asked Questions (FAQs)

Q: What specific responsibilities does a founder typically handle?

A: A founder is primarily responsible for creating and launching the business.

• This includes developing the original idea or product, defining the company’s vision and mission, and setting the initial culture.
• They often secure startup funding, recruit the founding team, and handle early marketing and sales efforts.
• They also manage legal, operational, and administrative tasks during the company’s infancy.
• Founders usually take on significant risk personally, financially, and reputationally.

Q: How does the role of a CEO differ in startups vs established organizations?

A: In startup settings, CEOs act as overseers of a wide variety of activities such as funding, introduction of new products, team management, and customer interaction. In contrast, CEOs of reputable organizations focus mainly on strategic goals, internal processes’ fine-tuning, multiplication of the size of a company, and management of complex relations with important stakeholders, such as boards, investors, and large workforces. They delegate routine functions to the senior leaders and focus on creating sustainable growth, monitoring risk prevention, and managing corporate POS.

Q: What skills are essential for both founders and CEOs?

A: Both founders and CEOs require strong leadership skills, including:

• The ability to motivate teams, communicate vision clearly, and make tough decisions.
• Emotional intelligence is a must, enabling them to build relationships across stakeholders.
• Problem-solving, resilience, and adaptability are shared traits critical across the founder and CEO spectrum.
• Additionally, founders benefit from entrepreneurial risk-taking skills, whereas CEOs often enhance their leadership through formal training and consulting.

Q: Do founders always maintain control of the companies they start?

A: Not always. Founders may lose control after raising external funding or appointing boards and professional executives, although they often retain significant influence through equity ownership or board roles.

Q: How important is leadership training for CEOs and founders?

A: Leadership training is critical to equip CEOs and founders with skills to navigate operational challenges, inspire teams, and drive innovation and growth. Many organizations undertake such training to enhance executive effectiveness.