I heard from my founder buddies that their companies are in a bit of a mess. So, I thought I’d share a few thoughts to spice things up.
Sometimes, you think the problem lies in your processes, job descriptions, lack of talent, or high turnover, even a loss of motivation… but the real issues often boil down to these four things:
When your company is in chaos:
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Money & Finance: If your cash flow is struggling and you can’t pay your team on time, it’s hard to stay focused. Business is about financial investment. You need to know when to buy low and sell high. Don’t buy at the peak and sell at the bottom. Do you have enough money to last until the end of 2026? Founders must have the confidence to make decisions. They are the most qualified to make those calls. Outsiders can’t fully understand the implications of those decisions.
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Who’s the leader in your company? The person responsible and at the forefront is the leader. They’re the ones who will stay until the end to clean up the mess if things go south. Founders deserve the most respect for taking on this responsibility. Whoever is responsible and cares about the company will contribute 65% to its success. Investors don’t invest in smart people; they invest in founders who are committed to their success. If you know that person, respect them. Financially, always be prepared for tough times. Be ready to cut losses or retreat when the market declines.
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Advisors Know your role and help the leader win. Your mindset, attitude, and actions should always be focused on helping the leader achieve their vision.
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Team Have unwavering faith in the leader because the team is fully committed and consistent in their words, actions, and attitudes.
However, most companies are chaotic because:
- Cash flow is insufficient
- The leader is dedicated but not in the right position or mindset
- Advisors don’t respect the leader enough
- The team doesn’t fully trust the leader (due to lack of information), leading to a breakdown in the team
What you should do:
- Founders should understand finance and cash flow.
- Good advisors will help you
- Clearly define who is responsible and leading the charge in this phase.
- Advisors will help you
Ultimately, a successful company only needs:
- A dedicated founder with a positive energy, passion, and commitment
- Highly skilled advisors who respect the founder
- A strong and loyal management team
But we often do the opposite:
- We’re eager to sell and do business but don’t collect money on time. We focus on offense but not defense.
- No one in the company is better than you, Or… the person who is better than you doesn’t realize that they exist because of you.
- Choosing the wrong people who don’t respect you
- Expecting employees to understand your pain, which will drain your energy.
You’ll struggle to achieve your goals, even if you’re dedicated, if things aren’t in the right place. Remember, founders succeed because they know how to put everything in the right place.
End of Q4 2024.
Best regards.