NPS Blog

The Financial Fact Founders Can’t Forget

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Unlike professional business managers at many incumbent companies, company founders can never forget this simple fact: Revenue doesn’t come from thin air; it comes from customers.

This way of thinking, it turns out, is essential to sustainable, profitable growth. In their upcoming book, The Founder’s Mentality, my Bain colleagues Chris Zook and James Allen found that, since 1990, returns to shareholders at public companies where the founder is still involved are three times higher than at other companies. Moreover, among the elite companies that Bain identifies as sustained value creators—that is, those that have achieved a decade or more of sustained profitable growth—two-thirds clearly exhibited the traits of Founder’s Mentality, whether or not the founder was still at the company.

In my latest post on LinkedIn, I look at how the customer focus that comes with a Founder’s Mentality can help a company succeed.

Read the blog post here: The Financial Fact Founders Can’t Forget

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