Being a Startup CEO is about solving problems Not Chasing the ‘Dream’ or Ideas

Being a Startup CEO is about solving problems Not Chasing the ‘Dream’ or Ideas 

Too often I am approached by potential clients who want to start a business. After a couple of conversations it becomes clear they do not understand what it takes to start a business or simply are not suited to be an entrepreneur. They do not understand the commitment of time and accepting responsibility for the business, especially when raising money to fund their startup.

Too often they are under the delusion they can be their own boss and set their own hours. Starting a business is not an 8 to 5 job. It requires total focus and a lot of hours and problem solving.

Being a startup CEO is not about being an “executive” it is about solving problems. First, you must solve a problem or fill an unmet need in the market to be successful. After that the business itself will constantly present problems which must be solved promptly in such a way that it does not reappear. A really good CEO will be proactive. They will see the potential problem beginning to form and resolve it before it appears. A really successful CEO will create “good” problems like more sales than anticipated, more customers than the business can handle. If they have been proactive they have identified the solution they can quickly implement before the good problem becomes an issue or threatens the business.

One given of startups is that there will be problems, many that cannot be anticipated. Others will be in the nature of being a startup, growth, or problems associated with being a business in your industry sector. One of the reasons investors want to see that you have experience in your sector is they want to be sure you have faced and resolved common problems for your sector. Investors usually invest in industries with which they have experience or have thoroughly researched. They will ask how you have planned to solve industry specific problems and they will know the right answer. If you don’t know the right answer they will most likely pass on investing their money with you.

Understand there is no such thing as a ‘comfort zone’ for a startup CEO. You will constantly be challenged often with issues in areas you must research, access, address, and resolve. As a startup CEO you must truly rise to the occasion and strive to be out of your comfort zone because it will broaden the scope of problems you can solve, expand your capabilities, and you will grow as a business owner. There is also no such thing as “regular hours.”

Being an outcome-oriented problem solver enhances your odds of survival as a business.

Time is of the essence in a startup! You can quickly get behind the curve and for a startup that’s the beginning of the end. Typically, it takes three days to make up for one day’s delay. Problems and issues cannot be ignored or put off they must be resolved and resolved quickly.

Startup CEO’s must be leaders. Problem solving is the essence of what leaders exist to do.  As leaders, the goal is to minimize the occurrence of problems – which means they must be courageous enough to tackle problems head-on before circumstances force their hand to face a problem that has then become a major issue.  Leaders must be resilient in their quest to create and maintain momentum for the business, its employees, customers, investors or lenders.

 Leaders who lack this understanding approach problems with linear vision – thus only seeing the problem that lies directly in front of them and blocking the possibilities that lie within the problem. As such, they never see the totality of what the problem represents; that it can actually serve a catalyst to improve the product or service, practices, policies, and standard operating procedures for growing and competing in the marketplace. They never realize that, in the end, all problems are the same – just packaged differently. The Chinese word for crisis is the same word used for opportunity. Startup CEO’s must adopt this view if the business is to survive.

A Startup CEO must never view a problem as a distraction, but rather as a strategic opportunity for continuous improvement and opportunities previously unseen.

Here are some effective ways to solve problems.

 1.  Don’t Be the Log Jam

When working with clients to resolve efficiency or growth problems the first thing I do is review the processes and look for the log jam. Usually every client’s work flow has a long jam- everything flows smoothly until it gets to a certain point, more often a person in the organization. Being a good CEO means hiring good and experienced people. Ideally people who know more about their area of the business than you do. The best CEO’s hire people with more knowledge and experience in their area of the business than they have.

Often CEO’s in startups or family businesses micro manage. Everything must eventually pass through them. Often the CEO is the log jam. One of my most significant mentors’ philosophy was “you hire good managers and you let them manage.”

You job is to solve problems, not be a problem. Hire good people and let them do their jobs. If the people you hire can’t/don’t do their jobs then you are the problem…..you don’t know how to hire or trust good people. One person can never ‘do it all.’ If you common response is ‘never mind I’ll do it myself’ you’re the problem. Don’t be the problem.

 2. Open Communication

Problem solving requires open and honest communication where everyone’s concerns and points of view are freely expressed. It is impossible to get to the root of the issue in a timely manner when people do not speak-up.

You cannot get to the cause or identify a valid solution with partial or incorrect information, or by making decisions based on assumptions.

 3.  A Solid Strategy

 Without strategy, change is merely substitution, not evolution.  A solid strategy must be implemented in order to solve any problem.  Many leaders attempt to dissect a problem rather than identify the strategy for change that lies within the problem itself.

 

4. Know When You Need Help

 

No one can be an expert at everything. Know when you need help and do not hesitate to call in outside experts who can help you realize your vision.

Effective leaders that are comfortable with problem solving always know how to gather the right people, resources, budget and knowledge from past experiences.

 Effective leaders map-out a realistic plan of action in advance. They have a strategy that serves as the foundation for how the problem will be approached and managed. They anticipate the unexpected and utilize the strengths of their people to assure the strategy leads to a sustainable solution.

 Never shoot from the hip when problem solving. Avoid guessing. Take enough time to step back and assess the situation and the opportunities that each problem represents. Make the problem solving process more efficient by recognizing that each problem has its own nuances that may require a distinct strategy towards a viable resolution.

You know that you have great leadership in your organization when problem solving becomes a seamless process that enables the people and the organization to grow and get better.  If problem solving creates chaos, you may have a serious leadership deficiency.

Problem solving is the greatest enabler for growth and opportunity. This is why they say failure serves as the greatest lesson in business and in life.  Be the leader that shows maturity, acts courageously, and requires accountability.