Business Digitals

At a recent YC event, Brian Chesky delivered a talk that left a lasting impression with Paul Graham, with many founders calling it the best they’d ever heard. Chesky argued that conventional wisdom on scaling companies is flawed. He found that the typical advice—”hire good people and let them do their jobs”—didn’t work for Airbnb. Instead, he turned to Steve Jobs’ approach at Apple, which has been successful, as reflected in Airbnb’s top-tier free cash flow margin in Silicon Valley.

The key issue is that founders are often advised to manage like professional managers, but this advice doesn’t suit their unique skills. This creates a mismatch between what is termed “founder mode” and “manager mode.” Founder mode involves direct engagement and flexible, innovative strategies, while manager mode relies on delegation and minimal interference. The frustration with traditional advice and the success of alternative approaches suggest that founder mode is more effective for scaling. Understanding and implementing founder mode could lead to even greater achievements for founders.

Read More >>