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Why do small startups have CEOs and CTOs?

June 23, 2011

Entrepreneurship is attractive to anyone who seeks an alternative to an 8-to-5 office job. Besides setting your own schedule, you get to control what your business does. That means you don’t ever have to have a job you hate.

Small tech startups are popping up everywhere and attracting hundreds of millions of dollars in venture capital. Entrepreneurship communities are forming around cities and universities, connecting hackers, hustlers, and investors. My excitement for the potential of tech startups is why I joined MSU Entrepreneurship Network, and why I co-founded SoapBox at Startup Weekend Lansing.

There is one aspect of startup culture that bothers me: Executive-level titles for small teams.

In small startups, labels like CEO and CTO are used to make us sound important. They are certainly valuable — as indicators to whether or not the team knows what it is doing.

Dave’s Law for the Seriousness of a Small Tech Startup: When a company has only a handful of employees, and at least one unabashedly labels himself or herself as CEO or CTO, don’t take that company seriously.

What’s the alternative? I think we should label ourselves by descriptive roles. For example, I’m not the CTO of SoapBox, I’m the user experience and product designer for SoapBox. Or maybe just skip labels entirely and provide a short biography. Serious startups already do this.

Don’t do this

The Coursekit team is a great example of what I don’t like. They’re doing something cool, and I mean no ill will, but they’ve fallen into the executive title trap.

Do this

Remind101′s co-founders do it right. These are the people behind the company and product.

Team for Remind 101