What’s a Company?

You might be thinking, "What the heck is this guy talking about?!" But the question goes deeper than it seems. Let’s critically dive into it.

A Set of Employees

At its core, a company is more than just a group of people—it’s a set of employees united by a common mission. Every individual within the company is there for a purpose, contributing to the collective goal. When employees no longer align with that mission, they often leave or are let go. This alignment is crucial, especially in startups, where the mission drives everything forward.

Older, larger companies, however, can sometimes lose sight of this. Over time, employees may start working just for the paycheck, and not for the mission. From my experience, those who have been with the company for a long time often seem disconnected from the core purpose. The passion fades, and what was once mission-driven work turns into routine.

Does Every Single Employee Need to Understand the Business?

Not necessarily. In a capitalist society, every employee is expected to fill a specific role with clearly defined responsibilities. While understanding the broader business can be helpful, it’s not a requirement for everyone. Employees are like pieces of a larger puzzle—each fulfilling their part to complete the overall picture.

What is essential, however, is creating a solid foundation for your employees. This foundation ensures that each person can effectively carry out their role within the system, even if they don’t see or understand the entire business landscape.

Entrepreneurial Employees

One of the most valuable types of employees is the entrepreneurial one—those with the drive and energy to build, take ownership, and ship things. These individuals are vital to the growth of early-stage startups because they learn fast and adapt even faster. Their hunger to gain new experiences and meet business needs often outweighs any initial lack of experience.

However, they are also the hardest to retain. These employees are always looking for the next challenge. If they feel underappreciated or that their growth potential is limited, they’ll leave—and more often than not, they’ll start their own companies. If you manage to hire these people, you’ve struck gold. They’re like golden apples, hard to find but incredibly valuable when you do.

Integration of Core Components

As a CEO, your primary role evolves as the company grows. In the beginning, you are the core component, wearing many hats and directly influencing all parts of the business. But as you scale, you delegate these responsibilities, entrusting them to others.

Your job then becomes one of integration. You must ensure that all these delegated components work together smoothly, much like integrating different parts of a software system. And just like software, your focus shifts to scalability—ensuring that the business can grow without losing its core functionality. It may sound amusing, but this is what running a company boils down to: building systems that scale.

Conclusion

Running a company is a complex task that involves managing not just people, but systems, alignment, and growth. Whether it's ensuring that employees are mission-driven, retaining entrepreneurial talent, or integrating the core components as you scale, a company's success depends on its ability to evolve while staying true to its purpose. Balancing these elements is what transforms a collection of employees into a thriving business.

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© 2024 Hashim Alsharif