The Founder's Superpower
by Stephen - 14th January 2025
Every founder dreams of building something remarkable. A business that's both impactful and rewarding. Yet, as Noam Wasserman so astutely outlines in his seminal 2008 HBR essay "The Founder's Dilemma", a choice often looms large: do you prioritise wealth or control? Or as it's often colloquially known, Rich vs. King.
This phrase evokes a decision paralysis that many entrepreneurs experience as they build their startups.
On one hand, there's the appeal of maintaining full control over every decision, vision and aspect of the company. On the other, there's the desire for financial success, the kind that comes from rapid growth and a profitable exit.
Control feeds our desire to lead with autonomy, while wealth validates the hard work and risk we take on.
This tension is aptly captured by the aphorism:
In the startup world, that saying takes on a practical meaning, which Wasserman thoroughly explored in his book, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. He delves into the choice between wealth and control and examines the implications of each path. It's one of my favourites, and I strongly recommend reading it.
Here's the main takeaway: the truth is that the Rich vs. King trade-off isn't a problem to overcome; it's an opportunity to define your legacy as a founder.
Choosing to prioritise control means aligning every aspect of your business - team, funding, strategy... - to protect your autonomy. You'll likely raise smaller rounds or opt for slower, more organic growth. This path is about building your company on your terms, even if it means sacrificing financial upside.
Conversely, prioritising wealth often involves relinquishing control in exchange for resources that can help your business grow rapidly. It's about understanding that stepping back from decision-making doesn't mean you're stepping away from your vision. It simply means trusting others to execute it at scale.
Both choices are valid. What matters is that you choose.
The trade-off entrepreneurs make - Founders' choices are straightforward: do they want to be rich or king? Few have been both.
You can see this play out in businesses where founders were unwilling to make hard calls. They insist on staying at the helm of every decision while also seeking aggressive funding. The result? They lose credibility with their investors and morale within their teams.
Contrast this with founders who lean into their choice. When they prioritise wealth, they negotiate hard and clearly with investors, securing terms that balance their personal goals with the company's needs. When they prioritise control, they set boundaries early and either choose funding partners who share their vision or they bootstrap to maintain independence.
So, ask yourself...what do you want most as a founder?
Choose wisely. Then commit fully.
Stephen
This phrase evokes a decision paralysis that many entrepreneurs experience as they build their startups.
On one hand, there's the appeal of maintaining full control over every decision, vision and aspect of the company. On the other, there's the desire for financial success, the kind that comes from rapid growth and a profitable exit.
Control feeds our desire to lead with autonomy, while wealth validates the hard work and risk we take on.
This tension is aptly captured by the aphorism:
"If you want to go fast, go alone. If you want to go far, go together."
In the startup world, that saying takes on a practical meaning, which Wasserman thoroughly explored in his book, The Founder's Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. He delves into the choice between wealth and control and examines the implications of each path. It's one of my favourites, and I strongly recommend reading it.
Here's the main takeaway: the truth is that the Rich vs. King trade-off isn't a problem to overcome; it's an opportunity to define your legacy as a founder.
Decisiveness as a superpower
The most successful founders aren't necessarily the smartest or the most innovative. They're the ones who make clear, intentional decisions and fully commit to them. The Rich vs. King dilemma is no different.Choosing to prioritise control means aligning every aspect of your business - team, funding, strategy... - to protect your autonomy. You'll likely raise smaller rounds or opt for slower, more organic growth. This path is about building your company on your terms, even if it means sacrificing financial upside.
Conversely, prioritising wealth often involves relinquishing control in exchange for resources that can help your business grow rapidly. It's about understanding that stepping back from decision-making doesn't mean you're stepping away from your vision. It simply means trusting others to execute it at scale.
Both choices are valid. What matters is that you choose.
The trade-off entrepreneurs make - Founders' choices are straightforward: do they want to be rich or king? Few have been both.
The danger of indecision
Wasserman's research is clear: founders who try to have it all often lose both. When you refuse to prioritise, you send mixed signals to your team and investors. Your vision becomes diluted, your growth stalls, and your relationships suffer.You can see this play out in businesses where founders were unwilling to make hard calls. They insist on staying at the helm of every decision while also seeking aggressive funding. The result? They lose credibility with their investors and morale within their teams.
Contrast this with founders who lean into their choice. When they prioritise wealth, they negotiate hard and clearly with investors, securing terms that balance their personal goals with the company's needs. When they prioritise control, they set boundaries early and either choose funding partners who share their vision or they bootstrap to maintain independence.
A framework for clarity
If you're a founder wrestling with this dilemma, here's a framework you'll find useful:- Define your goals. What's driving you; autonomy or financial success? Be brutally honest with yourself.
- Align your strategy. Look at your company's needs. Does your growth plan require heavy investment or patient, steady scaling?
- Communicate transparently. Share your priorities with your stakeholders: co-founders, team, and investors. Clarity builds trust and makes sure you're all moving in the same direction.
Embrace Rich vs. King
The Rich vs. King trade-off isn't about sacrifice. It's about purpose. By making a clear choice, you're not just navigating challenges; you're laying the groundwork for a business that aligns with your true goals. As Wasserman shows, founders who take ownership of their decisions are better equipped to build sustainable companies and realise their vision with purpose.So, ask yourself...what do you want most as a founder?
Choose wisely. Then commit fully.
Stephen