Overlooked Traits of Successful Startup CEOs
Part 1
Photo by Dima Valkov from Pexels.
Startup CEOs are incredible—superhuman when at their best.
Building a successful and sustainable business is rare; creating one that also scales to the 10s of millions of dollars in revenue is a feat; building an organization where people thrive and love to work too, well, that’s a hat trick. What’s more, as CEO, you put your integrity on the line in persuading others to join you in this challenging task--when there’s no sure way to ensure the desired outcome.
People often highlight as top traits of startup CEOs (also, entrepreneurs and founders) things like:
Creativity and vision. Yes.
Passion for the product. Yep.
Leadership skills. No doubt.
Perseverance. For sure.
Risk taking. Has to be.
Speed. Of course.
I agree, and I firmly believe there are other related traits that are as (or more) essential to startup CEOs and founding teams who want to succeed.
In this blog post, I cover why the first three items above are important but not enough. See next week’s blog post for a discussion of the final three.
Being visionary and creative means looking backward.
Creativity involves combining different ideas floating around our heads into something new (IdeaFlow), and building a new business is as much about the current day and the past as a vision for the future. Startup CEOs need to be experts at using what you already know and looking backward.
Computer scientist Kenneth Stanley uses the analogy of “stepping stones” when discussing breakthrough innovation.
The successful entrepreneur sees what is about to be possible in the world based on what’s already happened and what’s emerging right now. You see when one missing stone (an emerging social phenomenon or technology, for example) is just appearing, which will enable you to create something for the very first time. I imagine a river with two banks. The stepping stones help us hop, from stone to stone, from one bank to the other. The startup “visionary” sees the constellation of stones snap into place that allows us to build a new-to-the-world, high-impact product and business.
The product is important but secondary.
As a CEO, founder, entrepreneur, you need to be passionate about your business idea and product, and you need to commit to another ideal. You need to be dedicated to understanding the problem that your product solves in your customers’ lives. You need to become the absolute expert in the particular struggling situation that leads a large number of people to seek a better way to get something meaningful done in their lives.
This focus on the problem—over the product—serves as a true north that keeps your business focused early on and avoids straying later. The insights from deeply understanding the problem will make all your other decisions—about what to prioritize in the product roadmap, which go-to-market channels you should pursue, how to talk about the product in sales meetings or marketing, and so much more—obvious. It’s a gift that keeps giving.
Leadership isn’t about being the only star.
Of course, a startup CEO is ultimately responsible for the business. This does not mean you need to do all of the work. Early on, one of your most urgent jobs is showing traction with customers, or once you’ve gotten traction, scaling up.
You should prioritize and focus on the work that only you can do, and if that takes up all of your time, you need to get help with the rest. You need to tap into the ingenuity of other human beings you trust.
I’m not talking about you assigning work and telling people how to do what they are tasked with. I’m talking about delegation where you share the outcome you seek and allow your teammate to choose a path to that destination. This may still require and involve a ton of communication and collaboration across the organization, which is completely fine. You need your team.
Read part 2 here.