"Founder Mode" Explained

Y Combinator co-founder Paul Graham recently published a blog post titled "Founder Mode," where he discusses how Brian Chesky promotes two ways to manage a company: Founder Mode and Manager Mode.

The post quickly became a hot topic among entrepreneurs, sparking genuine conversations about how founders should run a company in today’s world.

Let’s break it down in this one. 👇

At a recent YC event, Airbnb's co-founder Brian Chesky gave a talk that stood out to everyone there. He challenged the usual advice about running big companies, which suggests hiring good people and letting them work on their own. Chesky tried this as Airbnb grew, but it led to major problems. He then found a better way by closely studying how Steve Jobs ran Apple. Which seems to be working, as Airbnb now has one of the best cash flow margins in Silicon Valley.

Many other founders at the event shared similar experiences. They had been given the same advice and found it damaged their companies instead of helping them grow. The problem, Chesky pointed out, is that this advice is meant for professional managers, not founders. There’s a big difference between running a company you started and managing one you didn’t.

Chesky’s insights revealed two ways to run a company: "Founder Mode" and "Manager Mode."

Manager mode keeps leaders at a distance from daily work to avoid micromanaging, but founders feel more effective when they stay hands-on. This approach isn't well documented, and founders often feel pressured to adopt manager mode, even when it goes against their instincts.

Unlike the typical hands-off style, founder mode encourages deeper involvement, such as meeting regularly with staff at all levels, not just top executives. Steve Jobs famously did this by hosting retreats for Apple’s key people, which made the company feel more connected and startup-like. This approach might be seen as unusual or even risky, but it worked for Jobs, and Chesky believes it can work for other founders too.

Chesky’s approach shows that founder mode doesn’t mean doing everything yourself; it’s about finding the right balance of involvement.

Each company will be different, and founder mode allows leaders to adapt as needed, creating a more effective and authentic way to scale. If more founders embrace this style, they could achieve even more by staying true to how they naturally run their companies.

Now it's up to you which mode you want to be in.

Subscribe and stay updated in the entrepreneurial world.