Founder and co-founder, what is the difference?

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Founder and co-founder

We all have heard of words such as founder and co-founder but in any startup, people should know the role for any specific job tittle and hence in this article we will clarify what is the difference between founder and co-founder of a company.

If we want to simplify the facts we have to say that the mastermind and main person behind a company, the man/woman who stablished the business entity is called founder. And obviously a co-founder is a person who helped founder in stablishing that company and works alongside founder.

But this seems like oversimplification and we have to go a little bit deeper to know what is exactly the role of founder and co-founders in a company. A co-founder is an essential entity in any startup. Founder and co-founder are like heart and brain for a body and body can’t live without either of them. So what is the role of a co-founder then? They simply have two main goals: they either bring new ideas for founders or help them realize their goals and bring life to founder’s ideas for a business.

Starting a startup or any other business alone is a very hard task and usually no one suggest this approach when it comes to startups. But there is a catch in having one or many co-founders. If communication between founder and co-founder is not right then we have a recipe for trouble. And how one can overcome this problem? Shareholders agreements is the answer.

These agreements act as a legal platform for any company with more than one founder and co-founder. This agreement will let founder and co-founder know their roles and things like power level, decision making authority and obviously, number of shares for each person.

This agreement will lead to need for a specific person in a company: director of company. Any company may have one or more directors and they should stablish a clear relationship among themselves and owners of the business. To stay in the course that’s in line with this article, we won’t go in depth of director’s category.

A co-founder is an extra brain for a company. Two minds can see a broader horizon than only one and this shows the importance of co-founder. But there is a fine line which can make a founder and co-founder relation work perfectly. If they think exactly the same way then benefits of having a co-founder are very limited. The best approach is to have a co-founder who thinks in the same direction as founder but not in the same way. This will lead to having to point of view on the same goal and hence the whole company will bloom. This is very important in case of startups and a team of founder and co-founders with common goal and positive attitude to make company grow, usually will lead to best results and on the other hand if we have a team who see each other as rival and only object another’s point of view to prove themselves right then startup will fade in chaos.

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