Flounder Mode: A Critical Look at Paul Graham's Viral Essay
Not every founder is Steve Jobs. Not every manager is John Sculley. Not every company is Apple. A measured pushback on the meme that ate Silicon Valley.
Happy Tuesday. In today's piece, I share my thoughts on the newest meme in technology and entrepreneurship: Founder Mode. While I agree with several of Paul Graham's points, especially for the very best founders, I think we need to take a step back.
Not all founders are Steve Jobs, not all managers are John Sculley, and not all companies are Apple. Some companies may be better off in manager mode, or some kind of in-between focus where you are not the founder that takes themselves so seriously. Today's piece unpacks Paul Graham's viral Founder Mode essay, examines its implications for startup culture, and discusses why it might not be the universal solution it is being presented as.
The essence of Founder Mode
Paul Graham's Founder Mode essay has taken Silicon Valley by storm. Here are a few key points:
- A contrast between founder-led and manager-led companies.
- A critique of professional managers and MBAs.
- Examples like Steve Jobs and Brian Chesky as great leaders.
Graham argues that founders often feel gaslit when they are told to run their companies like managers. He suggests that "Founder Mode," a more hands-on, visionary approach, leads to better outcomes.
The risks of over-indexing on Founder Mode
While there is real merit to Graham's arguments, I believe we need to be cautious about applying these principles universally.
Not all founders are visionaries. Early-stage startups often need solid operational skills more than they need a grand vision.
Manager-led companies still win. Look at Uber under Dara Khosrowshahi, or Microsoft under Satya Nadella. Both transformed by professional management, not founder showmanship.
The danger of emulation. Young founders of small startups should not try to lead like Steve Jobs or Brian Chesky prematurely. This is where the cultish brand of PG and his essays can do real damage. How can you optimise for Founder Mode when you are in survival mode, which is where most founders live until they reach a revenue or fundraising milestone that validates and de-risks the business?
What actually matters for early-stage startups
If you are running an early-stage startup, here is what I think you should focus on instead of worrying about Founder Mode. None of this contradicts Graham. He has likely written essays on most of these. It is a question of priority.
Cash management. Keep enough cash in the bank to reach your next milestone.
Product-market fit. Or, in YC speak, "Make Something People Want." Understand and solve real problems for your customers. This sits above any management style.
Customer service. Talk to customers. Handle support tickets. Learn and iterate. If founders are doing this, they will set an example, and the best leaders lead by example, not by overly aggressive micro-management. If you are genuinely in the weeds, you can answer some support tickets and make a couple of hundred cold calls a week.
Team building. Hire slow, fire fast, and build a strong core team. Founder Mode is more for when you have already built out a team at scale. The example Graham uses references Steve Jobs and his famous 100-person retreats. That assumes the existence of the 100 people.
Remember, even the most successful founders did not start in Founder Mode. They grew into it as their companies scaled.
The takeaway
Paul Graham's essay offers valuable insights. Just don't get caught up in trying to emulate the management styles of billion-dollar company CEOs. Focus on what matters most for your stage of growth, and let your leadership style evolve naturally as the company grows.
In all, I think Founder Mode is a great thing. It went viral, it got a lot of traction. But don't over-index on trying to do Founder Mode. You'll end up in flounder mode and you won't be successful with your company.
What do you think about Founder Mode? Let us know your thoughts.