How to choose your title as a business owner

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Page written by Chris Godfrey. Last reviewed on October 15, 2024. Next review due March 1, 2025.

What’s in a name? Quite a lot it seems, as there are dozens of business titles to explain who does what within a business structure. Your business title can set you apart from other company employees, indicate special skills, even determine how much you get paid. But which is right for you? Let’s dig into the hierarchy of business titles to discover more.

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What is a business title?

A business title is a formal designation or a label given to an employee or business owner that reflects their role, responsibilities, and position within an organization. It helps internal and external observers define a person’s position in the business hierarchy, clarify what they do, and can communicate authority.

What different business owner titles are there?

When it comes to their title, business owners are spoilt for choice:

Owner: The Owner has full legal and financial control of the business. This title reflects the individual’s ultimate authority over decision-making, operations, and ownership of assets within the company.
CEO (Chief Executive Officer): The CEO is the highest-ranking executive in a company, responsible for making major decisions and setting strategy. They report to the board of directors and are in charge of overall operations. CEOs are typically employees of larger businesses and may or may not own any share of the business.
Founder: The Founder is the person who originally established the company. This title reflects their role in starting the business, though they may or may not be involved in day-to-day operations.
Managing Director (MD): The Managing Director oversees the company’s daily operations and ensures strategies are executed. They often sit on the board and report to the CEO or owners, focusing on management and leadership. In smaller businesses, the MD may also be a major shareholder or be the sole owner.
President: The President often manages the overall day-to-day operations of a company, making key decisions on business strategy. This title typically ranks below the CEO and is usually given to an employee. The President title is more commonly used in large organizations and can be awarded to the head of a business division – for example, President of Sales.
Director: A Director can be a shareholder of a business who sits on the board – although their role may be only advisory, and they may have no executive function. Alternatively, a Director can also be in charge of a specific department or function within a business. They manage teams and resources, reporting to senior leadership such as the Managing Director or CEO.
Principal: The Principal is typically the main decision-maker in small to mid-sized firms, often holding ownership and operational responsibility. In professional services firms, they guide strategy and manage key client relationships.
Managing Partner or Managing Member: A Managing Partner (in a partnership) or Managing Member (in an LLC) leads and makes high-level decisions, representing the firm in major actions. They have both management and ownership responsibilities.
Administrator: The Administrator oversees the business’s administrative operations, ensuring efficient workflow, compliance, and resource allocation. They typically focus on internal functions, such as finance or HR and report to higher-level executives.
Proprietor: A Proprietor is a sole owner of an organization, and the title is commonly associated with small businesses. This title reflects total control over the company’s assets, decisions, and operations, without external partners.
General Manager: The General Manager is usually an employee who manages day-to-day operations of a division or entire company. They oversee staff, budgeting, and operational efficiency, typically reporting to executives such as the CEO or Managing Director.
Chairperson: The Chairperson leads the board of directors and ensures the board operates effectively. They provide governance, offer strategic advice, and act as a liaison between the board and senior company executives such as the CEO.
Director of Operations: The Director of Operations is responsible for overseeing and optimizing day-to-day operational processes. They focus on improving efficiency, resource management, and achieving business objectives, reporting to top executives.
Technical Director: A Technical Director leads technical aspects within a company, ensuring engineering or IT operations run smoothly. They guide the technical team, often reporting to the CEO or other top management for strategy alignment.
Creative Director: The Creative Director oversees the company’s creative processes, including branding, design, and media. They lead creative teams, develop the artistic vision and direction, and report to executives or senior leadership.
Finance Director: The Finance Director is typically in charge of the business’ finances and will play a key role in structuring investments, obtaining business loans and dealing with business grant providers. The Finance Director usually reports to the CEO or MD and is a core member of the senior management team.

5 tips for choosing your business title

How do you decide which name is best for you? Here’s how:

1. Determine your company structure

The structure of your business may indicate your business title. For example, if you set the business up as an LLC (limited liability company), you are technically a ‘Member’ although you may prefer to be called a Founder or Principal. Corporations will usually have a board of Directors and a CEO or Managing Director. Partnerships will usually use the title Partner or Managing Partner.

Be aware that you should determine your company structure in a way that is best for the business – tax efficiency, share of profits, legal responsibility, financial risk, etc – and not your business title. There’s no law that says you cannot be a CEO in a partnership, or a Founder in a corporation and so on.

2. Choose titles by area of expertise

You may choose your title based on your level of ownership, level of responsibility or your area of expertise. For example, if your skills are technical and you are responsible for all things IT or engineering, you may be called Technical Director. Or, if you’re a wizard with business finance and in charge of the business accounts and investments, you could take the title Finance Director.

3. Create your company hierarchy

If you’re running a sole proprietor business, you and are the company and your business hierarchy is a simple as it can get. However, as your business grows and you add employees, partners and shareholders, so the business ‘family tree’ becomes more complicated. Your company hierarchy helps everyone – including those within the company as well as suppliers and customers – to know who is responsible for what, who reports to who and who’s word carries weight.

If you’re at the top of the tree, then ultimately, everyone else reports to you. However, you wouldn’t want that. Especially if your business has dozens or even hundreds of employees. Instead, you’ll have a layered hierarchy, like a wedding cake, where tiers of workers and management report up the chain to their direct supervisor. Eventually, only a small number of senior management, perhaps three of four people, will report to you. This will give you the informed oversight of all operations that you need without overloading you with the granular information that lower-level managers are responsible for.

4. Consider future company needs

As businesses grow and they add more employees, partners or directors, so their hierarchy will change. This means it is important to create a hierarchy that is flexible and will allow for the addition of new titles and reporting lines of sight. You don’t want a rigid structure that ends up dumping dozens of reports to one person, nor do you want a corporate family tree that creates roadblocks to employee promotion or that can create resentment or petty jealousies if some workers feel the importance of their role is not being recognized.

5. Think carefully before using a creative or silly business title

It may sound fun to call yourself The Head Honcho, Top Dog or The Big Kahuna, but really, how does that look to employees or the outside world? If you’re not serious about your business title, how serious are you about business? Skip the silly names and play it straight. People want to deal with the Founder, not the Big Cheese.

How Swoop can help

It doesn’t matter if you’re the CEO, Managing Partner or Financial Director, working with business finance experts can make all the difference when you’re seeking funding. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality business loans from a choice of lenders. Put your business name up in lights. Register with Swoop today.

Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.

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