There are numerous leadership positions in a company, with co-founder and founder being the most common. Co-founder and founder each play a significant executive role in the company. Both are integral members of the leadership team and contribute to upholding the business’s values, achieving its objectives, and expanding its operations.
However, many continue to be unfamiliar with the distinction between a co-founder and a founder. Therefore, this article will discuss their respective meanings and distinctions.
Also read: What Is a Chief Business Officer (CBO) and Their Role in Startups?
What is a Co-Founder of a Company?
Co-Founder Meaning and Job Description (source: Freepik).
Co-founder is an executive team member who plays a significant role in establishing the company. Typically, this individual collaborates with other founders to create and launch the business. Co-founders share certain responsibilities with one another. There is occasionally only one founder and co-founder. In such situations, they determine their own roles.
A co-founder may also be a highly-skilled individual who assumes an active role once the business is established or contributes to the company’s leadership and future vision.
Also read: Important Positions in Startup Organizational Structure
The Differences between Founder and Co-Founder
After knowing the co-founder meaning, let’s discuss about their differences with a founder. A founder is an individual who establishes a business and transforms ideas into tangible profits. The founder establishes the business infrastructure and initiates operations. A solo founder is an entrepreneur who establishes his own enterprise. However, if multiple people are involved in the launch of the company, they can be considered co-founders. A company may have a founder and one or more co-founders on occasion.
For instance, if we create and construct a startup, we automatically acquire the title of founder. A few months later, we may seek a co-founder to fill in some of our knowledge gaps. In this case, we are appropriately referred to as startup founders. However, we will refer to our business partners as co-founders.
Alternatively, if we decided to start a business with two other friends. All three would be involved from the project’s inception. Consequently, we would all be considered co-founders. Since we all contributed to the establishment of the business, it would be inappropriate to claim the title of “founder.”
Also read: The Difference Between CEO and Director in A Startup
The Responsibilities of the Co-Founder
Next, we will discuss about the co-founder responsibilities. A co-founder may play a variety of roles within a company. The majority of co-founders assist with leadership issues and company visions. In fact, they rarely participate in other business decisions unless they acquire an additional title, such as CFO or COO, or are assigned to a different role. Among the responsibilities of a co-founder are the following:
Communicating the company’s vision to its stakeholders and ensuring its survival. Multiple founders strengthen the company’s vision by ensuring that it is adhered to at every level of the business. They can provide leaders and employees with training or discussions on how to uphold the company’s vision.
Supporting business objectives. Some founders play an active role in establishing goals for the business, collaborating closely with the CEO and other leaders to ensure the goals are attainable and within the specified time frame.
Some co-founders also contribute to the upkeep of the company’s morale by holding training sessions, updating meetings, and taking an active role in the development of their employees in order to boost their confidence.
Also read: The Importance of Business Incubators for Entrepreneurs
Tips for Finding a Co-Founder for a Company
When a company determines that it needs a new co-founder, multiple references can be used to find qualified candidates for the crucial position.
1. Private network
Your personal network is the best resource for finding a new co-founder. People with whom you have worked, gone to school, or who are simply acquaintances can make excellent co-founders. Due to our familiarity with their personalities and skills, we can easily determine whether or not they are a good fit for the company.
However, if we are unable to find a co-founder within the private network, we have other options for finding a suitable candidate. There are social networks, online startup communities, events, conferences, and specialized programs including startup incubators and accelerators.
These methods could be the best options for finding a co-founder, particularly for founders who have an extensive network of other startup founders. Moreover, co-founding a startup, particularly a large one, is a goal for numerous individuals. Therefore, we could solicit a recommendation from these networks in order to identify a suitable candidate for the co-founder position.
Also read: Advantages of the Transformational Leadership Style in Startups
2. Investors
If we were unable to locate a co-founder through our private network, we could do so through investors. Active investors in a market typically have a vast network of startup actors. Therefore, in addition to discussing fundraising, discuss the need for a new co-founder with investors.
3. Events
The candidates for co-founders were present at the events we attended. To find a suitable co-founder candidate, match the co-founder candidate’s profile with the event audience’s profile.
4. Headhunters
If you have difficulty finding a desirable co-founder on your own, you can hire headhunters. Involving professionals in the candidate selection process can be practical and profitable. Typically, headhunters aid in developing a well-defined profile. We only need to pay them if they find us a better candidate.
Also read: Crisis Management Plan, Is It Important for Startups?
What to Look for in a Co-Founder?
What is Co-Founder? The Definition and The Responsibilities (source: Freepik).
Whether we want to work with a co-founder from the company’s inception or after the company has been established, there are a few characteristics we should look for in a co-founder to ensure we choose the right person.
Priority one when searching for a co-founder is experience. A co-founder must have the right combination of knowledge and skill in order to increase personal competence and succeed within the company (or the capacity to learn them as needed).
If we lack mastery in certain areas of expertise, this requirement is mandatory. Remember that we must find a co-founder with complementary and balancing technical skills and experience.
This is a plus for us if we find a co-founder who has previously founded a company. These experiences could be of great assistance in the early stages of our company and in resolving common issues.
Stress management is yet another important quality to consider. The startup industry is stressful and draining, so look for candidates who can withstand the pressure.
Undoubtedly, it is difficult to determine how a stranger handles stress. Consider a well-known member of the candidate’s personal network in order to determine how they handle pressure and obstacles.
If we come across a desirable candidate with whom we are unfamiliar, we must ensure that he or she has adequate experience and is adept at handling stressful responsibilities. This is why selecting a co-founder who has already founded a company is the best option.
Lastly, when speaking with a potential co-founder, inquire about their goals and motivations for starting a business to ensure that their visions align with ours. Be wary of anyone seeking co-founding status for selfish reasons.
This was a brief explanation of co-founders for those interested in launching a startup. We must look for these qualities in a co-founder or business partner!
