Building a team · Business Management

Is it beneficial for the company to hire CEO who will not founder of the company; instead of finding the co-founder and hire him for the same position?

Sagar Patil Co founder at Archat Technologies Pvt. Ltd.

May 11th, 2017

Currently there is two founders of my startup company, but we don't have deep knowledge of doing business. Should we find new co-founder for company who knows all about business by adjusting equity and hire him for CEO position? Or should we hire some non co-founder CEO?

James Anzaldua

May 11th, 2017

An experienced/smart/business savvy/sales/business development person is worth 'their weight in gold'. I just turned down a co-founder position with a company called ICON Smartech for several reasons. However, the CEO clearly conveyed (to me) that his expertise was in 'engineering' (and not in 'business'). When it's all said and done with, it takes a 'team' to have a 50/50 chance to succeed... PERIOD! However, what's most important (IMHO), is 'chemistry', trust, integrity, and mutual respect. If you can't get passed that part with regards to finding a qualified CEO, why bother? Take your time finding the right person for what is (obviously) a very 'key' position with the company. The way I see, it, you will be spending more time with this person than your family (that's the 'reality'). With that said, I wouldn't want to spend 12 - 15 hours a day (or more) of my life with someone who I don't trust... would you?

Martin Omansky Independent Venture Capital & Private Equity Professional

May 11th, 2017

Don't hire any CEO now. Too expensive (in cash and/or equity) and unnecessary at this early stage. Use funds instead to advance your product offering and sales activity. Find and pay as a consultant a mentor/industry greybeard to give you advice and drive the vehicle until you get some traction.