Finding a balance when the buck stops!

By mike | January 6, 2015 | Improve business

I am often asked when a new start-up is formed between two investors – who should be in charge? There are two polarizing arguments, and both are put succinctly in this recent article in The New York Times – coincidentally about Australian co owners of Appster.

Josiah Humphrey and Mark McDonald work happily as co-chief executives of Appster. They have found an extremely efficient way of working together, without the whole decision making process becoming slow and cumbersome. Boundaries have been set for each persons role and important decisions are made jointly. The problem that can (and probably will) arise is that one person will want control. When outside investors become involved, the whole area of business politics rears its ugly head again – one of the over riding reasons many businesses are started – to escape that!

The opposite approach – not wrong but different – relies on one person being responsible for the company  – one strategy, one vision and one decision maker. Decisions (if the correct person is in the role) can be made quickly and dynamically.

There is no correct approach – as in all of these matters, it will depend on the individuals – and how successful or not the business start up is!

If you would like to discuss your business start up get in touch with Mike Harding at Harding & Co, Chartered Accountants, Mona Vale – 0401 631 904