Being a CEO of a start-up company is one of the most coveted jobs, but it is also the least understood job. Most people believe that startup CEO’s are all-powerful, and they can do whatever they like. Of course, this is not the complete truth. Even though CEO’s have the power to run the company; their activities are usually directed towards meeting the needs of customers, employees, investors, and communities. Here are some important responsibilities of the CEO in a start-up company.
Get Office Space
Once you have a few enthusiastic employees, you must get a decent office space. Initially, you can work from your garage or house until the team members are around 7 to 8 people, but once their number increase you may have to get a place. You can approach a real estate broker to find a place that fits your needs. Initially, try to keep the monthly expenses and the length of commitment as low as possible.
Building a Strong Team
The CEO of a start-up company not only hires, fires, and leads the top management but also hires, fires, and leads the entire organization. CEOs must resolve conflicts between senior members of their team and make sure they work together in the same direction. They must set the vision and strategy of the company and make sure this is communicated to each member of their organization.
The CEO’s job is one of the most challenging jobs in the company. As a CEO of a start-up company, you are responsible for everything. You handle marketing, operations, financing, human resources, public relations, sales, hiring, compliance with state regulations, and several other activities. Some of these activities can be delegated, but this delegation can be done only by the CEO.
Most start-up CEOs believe that raising funds for the company is their most important duty. Fundraising is important, but the main contribution of a CEO is to build a great business with the money raised. CEOs of start-up companies must set the direction and hire a team to accomplish the goal.
Good Working Atmosphere
A CEO is also responsible for building the work culture of the start-up. It is a known fact that a company’s biggest asset is its staff. If the working atmosphere is not good, it can drive away enthusiastic employees. The work culture of the company can be built in different ways and the CEO of the company sets the tone. The dress, the people close to the CEO, and the overall attitude of the CEO plays an important role in setting the culture of the company. The CEO must congratulate the top performers of the company and show interest in developing their skills. This will motivate the employees and they will try to give their best.
Allocation of Capital
One the biggest problems faced by start-up companies is the allocation of capital. Today, many start-ups are funded by angel investors. CEOs must know how to allocate their funds so that their investors get maximum return. The CEO must set the budget for each department and make sure the department received the funds on time. While allocating funds, they must keep a small percentage for unplanned expenses. CEOs must realize that cash is king, and it is their duty to make sure the bank balance stays above zero.
Also, they must consult the senior management before making a big investment. At the end of the day, the CEO must be able to produce $1 of shareholder value from each dollar raised from investors. If the CEO is unable to produce value, the funds must be returned to the investor.
As a CEO, you must be a jack of all trades. You must build a product that your customers love, recruit an efficient team, get funding from investors and partners, and guide each member of the organization. However, being responsible for every aspect of the business does not mean that they cannot delegate their responsibilities.