Recently, Brian Chesky, co-founder of Airbnb, delivered a remarkable insight at a Y Combinator event. Most entrepreneurs who heard his talk said it was “the best they’ve ever heard.” This was more than just a talk. Through this session, Chesky flipped conventional wisdom on startup management, introducing the concept of Entrepreneurial Mode. Today, we will explore what entrepreneurial mode is and why most founders need to break away from managerial mode.
1. Managerial Mode vs. Entrepreneurial Mode: What’s the Difference?
One of the most common pieces of advice founders hear as their company grows is, “Hire great people and give them the freedom to work.” While it sounds reasonable on the surface, this advice often leads founders in the wrong direction. Brian Chesky followed this advice, but the results were dismal. He began studying how Steve Jobs ran Apple, and in the process, he developed his own “Entrepreneurial Mode.”
What is Entrepreneurial Mode?
Entrepreneurial mode is essentially a hands-on approach where founders deeply involve themselves in every aspect of their company, moving beyond managerial mode to manage all facets of the business. It stands in stark contrast to the typical management method, where tasks are delegated to subordinates, who are left to figure things out on their own.
2. Why Should Founders Move Away from Managerial Mode?
Successful founders, including those at Airbnb, step away from managerial mode because it doesn’t suit them. Most founders want to oversee every aspect of their company in line with their vision and philosophy. However, managerial mode often leads to excessive delegation, which can harm the company in the long run.
A Real-World Example: Airbnb’s Growth Secret
Before developing his entrepreneurial mode, Brian Chesky researched Steve Jobs’ management style and explored new ways of running a company. Jobs’ method of gathering Apple’s top 100 employees for annual workshops inspired Airbnb, and the results were remarkable. This entrepreneurial mode became the secret to startup growth while maintaining a strong vision.
3. Success Factors of Entrepreneurial Mode: Managing Without a Black Box
In managerial mode, it’s common to treat organizations as modular black boxes. Tasks are delegated to subordinates, who handle the details. However, entrepreneurial mode demands a deep understanding of every part of the company and direct involvement in key decisions. This helps founders make decisions that align with their vision, ultimately driving better outcomes.
4. The Need for a Shift to Entrepreneurial Mode
Many founders experience frustration and discomfort in managerial mode. They instinctively feel the need to be more involved in every aspect of their company. Unlike managerial mode, this approach aligns the company’s direction with the founder’s vision, fostering more creative decisions.
Especially as startups grow, founders face increasing pressure on how to manage their company. But with entrepreneurial mode, founders can lead their company to success in their unique way.
5. The Need for Entrepreneurial Mode: Preparing for Future Success
While there are few books or educational resources on entrepreneurial mode, individual founders are successfully applying this approach through experimentation and experience. In the future, entrepreneurial mode will be understood as well as managerial mode, and many successful founders already recognize that it holds the key to success.
Conclusion: Achieving Greater Success Through Entrepreneurial Mode
Entrepreneurial mode is different from managerial mode, where authority is delegated to employees. Instead, it involves founders taking direct control over operations, ensuring that the company grows in line with their vision. Many founders are now abandoning managerial mode in favor of entrepreneurial mode and achieving greater success. Consider applying entrepreneurial mode in your own venture. The possibility of success is in your hands.
References: paulgraham.com, “Founder Mode”