Your Business Model = Your Role in the Company

As a company founder and CEO, it may sound odd to hear that your company’s business model will determine your future role.  But it will.

If you’re one of the rare companies that can turn a net profit early on, it greatly increases the chances of you sticking around as CEO for a while.  On the other end of the spectrum, if your model focuses on building your user base now and worrying about monetization later, your dependence on investors will decrease the likelihood of you keeping that CEO title indefinitely.

Different founders have different agendas.  Some have little or no emotional attachment to their enterprise and only want to make a big chunk of cash from an acquisition.  Others want to build a truly great and influential company, even if that means they won’t be involved in day to day operations at some point.

Often times market forces will choose a viable business model for you.  But when you can choose one, be realistic that the more outside investment, the more your ownership will decrease.  And as your stake in the company dwindles with each funding round, chances are so will your role.

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