Is it Normal for a CEO of a Small Startup to Make Every Decision?

No, it is not normal nor realistic to have a CEO of a small startup make every decision, especially if you're a 25-year-old CEO with a team of just 4-5 people. Making every decision not only is unusual but can also lead to several negative outcomes for the company in the long run.

One possible consequence is that the CEO will suffer from the burden and the company will suffer as a result. Decisions will constantly be left unanswered and unmade, leading to a slower growth for the company and potentially damaging projects. The second, more immediate consequence is that the CEO will be overworked, potentially working 14-16 hours a day, which is unsustainable and detrimental to both the company and the CEO's health.

Moreover, it's crucial to know the size of the company. A team of 25 people can range from as few as 4-5 people to as many as 20 people. The managerial challenges and the distribution of decision-making responsibilities are vastly different between a small team of 4-5 and a larger team of 15-20.

For a team of 15-20 people, a second layer of management is necessary, with decisions spread across the company to ensure a more balanced and stable operation. However, if the company is very small and the CEO wants to maintain this size in the long run, a traditional CEO role may not be necessary. Instead, common sense and clear decision-making processes between co-founders can be sufficient. However, this doesn't mean that a CEO (or equivalent) is unnecessary. Without a strong leader, the team may not grow beyond its initial size.

In a healthy and mature startup, the CEO should focus on the following:

Maintaining the vision and mission of the company Sustaining a shared vision and strategic direction Leveraging the team's expertise and decision-making capabilities effectively

It is common and expected in a small startup for the CEO to make key decisions, as they typically have the broad view of the company's vision and the ability to make strategic decisions that align with the company's objectives. This is necessary to guide the company and ensure that every decision aligns with the overall vision and direction. Micromanaging the CEO or CTO, on the other hand, suggests a lack of confidence and trust in their own decisions, including the hiring process.

Startups thrive or struggle based on their vision and the decisions made to support it. If a CEO is heavily involved in every decision or micromanages the leadership team, it may indicate a lack of confidence and maturity in the startup's leadership. In such cases, it may be advisable for the CEO to step back and let the team operate more independently, fostering a culture of trust and confidence in their abilities.

If you do not agree with this principle, it may be time to find a new company to work with, as it is clear that the startup in question is operating in a way that promotes successful long-term growth and decision-making.

Find the right balance between leadership and autonomy to ensure the startup's success. Trust in the decision-making process and the capabilities of your team, and you'll be on the path to building a thriving business.