What Is Founder Mode, Really?

Lately, it seems like lots of us (dare I write, most) founders and our capital providers are talking about Founder Mode — whether you’re tuning in to business podcasts, scrolling through LinkedIn posts, or having casual conversations with fellow founders. And if you’ve been out of the loop, here’s the short version: Founder Mode (as opposed to manager mode) was coined by Paul Graham in a recent essay on the topic and touches on the unique way that founders — especially "hardcore" ones — run companies. It’s direct, sometimes intense, and different from the way many organizations are (traditionally) run.

There’s no question I find myself drifting into Founder Mode. And the reason the concept has gone viral among founders and those who work with and/or around us is simple — it hits a nerve.

There are some who see Founder Mode as a super valuable and unique blend of visionary work, high-stakes decision-making, and the ability to shift gears at any moment. Others see it as overzealous and say it stretches both founders and their Ideal Stakeholders too thin. Here's my take: The truth usually sits somewhere in the middle, and in this series, I aim to bring a little more nuance (and hopefully, understanding) to the debate. In my view, Founder Mode isn’t an always-on thing — it’s a mode, a moment-in-time thing.

Defining “Founder”

I say this often, but words matter. Why? Because how we define them shapes how we think about them. It’s hard to have a useful conversation if our definitions about the topics we’re discussing are different, so let’s see if we can find a clear definition of what “Founder Mode” really is before we dive into why it’s the latest business concept to go viral.

Let’s start with founder: In my opinion, “founder” is a word that’s thrown around way too often to describe anyone who starts a business. The truth is not every entrepreneur is a founder. In fact, most aren’t.

As founders, we have a personal stake in the vision and mission of our companies, and we also see these companies as extensions of ourselves. This is a key difference from just any entrepreneur — some may simply be pursuing an opportunity that presented itself rather than following a profound vision or idea. Founders are driven by a deeper sense of purpose and connection.

I believe there are five entrepreneurial archetypes:

1. Visionary: Visionaries have a clear, often disruptive idea of what the future looks like and are obsessed with making that future a reality. (These are the founders we most often think about.)
2. Legacy: Legacy entrepreneurs tend to build new companies in established industries. Just like the Visionary archetype, they’re deeply committed to building a damn good company they can pass on to future generations.
3. Lifestyle: The Lifestyle archetype wants to build a business that will serve their personal needs and support the life they want. They aren’t aiming for hypergrowth but are more focused on balance, freedom, and autonomy.
4. Accidental: In many cases, Accidental entrepreneurs never intended to start a business and don’t begin with a clear vision. Circumstances push them into building a business, and sometimes it evolves into something significant.
5. Opportunist: Opportunists identify a market gap or short-term trend and create a business to capitalize on it. They aren’t emotionally connected to the idea and aren’t invested in building a great company — they’re mainly in it for the money.

While I’d love for all five of these archetypes to embrace the Founder’s Mindset (I’ll share more on Founder’s Mindset in the next article in this series) and occasionally embrace Founder Mode, the reality is that only the Visionary and Legacy archetypes statistically (I love probabilities) tend to possess this mindset innately.

The Lifestyle, Accidental, and Opportunist entrepreneurs have businesses that are usually more transactional or situational by nature. This means they might not always have to live in the intense, multifaceted reality of Visionary or Legacy founders who naturally step into Founder Mode because they see their businesses as extensions of themselves. They’re the ones who really get into the long, if not infinite, game of building a company and have a vision beyond the now, looking 5, 10, or even 20+ years into the future.

For Visionary and Legacy founders, their companies are a vehicle for their personal mission and are deeply tied to their identity and long-term ambitions. They often feel the burden and the privilege of having to balance vision with execution, leadership with coaching, and long-term strategy with short-term crises. These are the ones at the center of the Founder Mode discussion.

Defining “Mode”

Now, let’s talk about mode. "Modes" are the mental frameworks or mindsets we all function within at any given moment. None of us are in a single mode all the time — we have different hats we wear, and our mode changes based on different scenarios or contexts. For example, throughout my forty-plus years in business, I’ve found myself switching from Founder Mode to Coach Mode to Investor Mode and then to Dad or Husband Mode at the end of the workday.

Once you understand the beauty of being "intentionally modal," it’s liberating. Many of us walk through life without really knowing what mode we’re in, and even worse, we’re often guilty of trying to be multi-modal, juggling several modes at once. Let me be clear: That’s not possible, and it’s certainly not healthy for us or those around us.

It’s important to understand that each of our modes is not a different "alter ego" we’re tapping into. When you change your mode, you aren’t switching identities or putting on a mask. I don’t buy into that. Why? Because an alter ego is a false front — it's inauthentic. Modes, on the other hand, are real. They’re facets of who we are. Our modes are part of our authentic selves, and it’s up to us to be sure we’re focused and intentional when in each mode.

Here’s an example: Years ago, I had just taken over running a multibillion-dollar lending and investment division where we had an investment committee to talk about the "deals" nearly every day. I’m a very open-door policy kind of person, and very early in my tenure, people started coming by to talk about the deal they were working on. Over time, I found myself getting frustrated with these meetings, and I wasn’t sure why — until I had this epiphany: They were coming in acting like they just wanted me to coach them, but that wasn’t actually the mode they wanted me to be in. Instead, they were trying to figure out whether I was going to be supportive of the deal before it went to the investment committee.

Sometimes, this caused frustration and confusion during the investment committee meeting if my perspective changed based on the discussion. This process just wasn’t working for me.

I ended up writing a memo saying that when people come to me, they need to tell me what hat I should be wearing, and — this is the “big lesson” — they need to know I'm only going to wear one type of hat during the meeting. So... did they want me to be a coach and help structure the deal? Did they want me to help them understand the risk and reward of a company’s business model? Or did they want me to judge the deal?

By becoming singularly modal in these conversations, I not only reclaimed 15–20% of my time but also used the time we did have more effectively because I knew what mode I was supposed to be in. Not to mention the increased productivity of everyone involved. As goes the leader, so goes the rest of the organization.

This wasn’t about me being difficult — it was reality. As a coach, I could guide and help them shape their ideas and push them toward growth. But as an investment committee member, my job was to make the right decision for the company — not because I loved the deal or liked the person, but because it was what the business needed. Different modes, different hats, every one authentically me.

Why Founder Mode Is Worth Exploring

As someone who’s worked with hundreds of founders (not to mention, I’m one myself), I believe Founder Mode deserves a deep dive. That’s why I’m writing this series and just finished recording a podcast on the topic.

No founder is always in Founder Mode. There are so many modes we have as founders: visionaries, coaches, mentors, team leaders, and the list goes on. But if you aren’t clear on what mode you’re in, life becomes chaotic and confusing for both you and those around you. It’s about being consciously in the right mode at the right time and making the right choices to build a damn good, or great, company.

I believe founders are especially unique because we’re typically the only ones with a deep understanding of our company’s vision, purpose, and brand as well as what matters now and where we’re going. We have an instinctive sense for how our companies will get there and who our competitors will be, not just today but tomorrow. After all, the whole damn company was/is our idea. But as founders, we also face countless challenges — some easy to explain, others deeply felt but hard to articulate.

I think one of the many reasons founders (and those who work closely with us) are worked up about the concept of Founder Mode is because lots of founders, including yours truly, occasionally feel there are a lot of people around us who'd prefer to see us toned down. I get it — when we’re in Founder Mode, it can be pretty intense for everyone.

On the other hand, damn good, if not great, founders work extraordinarily hard and deeply, deeply care not just about our vision but also building high-trust relationships with all our Ideal Stakeholders.

While some people argue that Founder Mode is essential because it allows founders to switch roles quickly and meet constant demands, others say it’s unsustainable, claiming it stretches everyone too thin. The debate is heated because both sides have a point.

But underneath all the noise, one thing is super clear to me: Founders matter. And that’s why this topic is so important to dig into. Founders are the ones creating tomorrow’s jobs and building the future. What we do and the decisions we make impact so many more people than just the associated stakeholders.

Up Next…

As this series continues, these definitions of “founder” and “mode” will be the lens through which we explore the complexities of Founder Mode.

In this series, we’ll dive deep into the Founder’s Mindset — the distinct way we as founders think, operate, and approach challenges. We’ll unpack what makes us unique, what drives us, and why our mindset is both a gift and a burden. This exploration is critical because the Founder’s Mindset is what allows us to access and operate in Founder Mode when it’s needed most.

If you want to stay tuned, I encourage you to sign up to receive email updates with each new article in the Founder Mode Series. I’d also love you to share this with others who are grappling with “Founder Mode,” whether they’re a founder or working with one. I want this series to spark discussions and debates — after all, that’s how we learn and grow. As someone who knows he’s “guilty” of Founder Mode, I’m genuinely excited to explore these ideas with any and everyone who's interested in this topic.

So… I’m adding this link to my Google Docs draft of this series. I’d love to get your feedback and read stories from those who have experienced the good, the bad, or the ugly of working with one or more founders in Founder Mode. Who knows — maybe this will turn into a book that includes lots of great stories about founders around the world.

Read the rest of the Founder Mode Series:

• Part 2: Tapping into the Founder's Mindset
• Part 3: Essential Modes for Founders