founders

The Most Valuable Startup Resource

 

As an entrepreneur, what’s your most valuable resource?

Your colleagues? Your network? Ideas? Money? Time?

All crucial, but this one tops the list:

Your pool of mental energy. 

Just like the physical energy required to run a marathon, you need a big ol’ pool of mental energy for the psychological demands of building a business. It’s common sense but often de-prioritized amidst the startup whirlwind. It’s a prerequisite. It’s what makes everything possible.

When your pool is full you can take on the world. When it’s drained maybe you can go through the motions but your company needs way more than that. And if it’s drained too much of the time, there’s the ever-present risk of depression and complete burnout.

Things that can fill your pool: positivity, a healthy lifestyle, helping others, amazing friends and coworkers, getting awesome results by focusing on key tasks.

Things that drain your pool: negative thoughts like resenting your competition, taking poor care of yourself, engaging in flame wars, team drama. Really anything that detracts from the laser focus on your mission.

Be aware of your pool and guard it closely. Don’t let yourself or others drain it. If you treat it like the precious resource it is, amazing things can happen!

How Do Great CEOs Handle Setbacks?

One of my favorite quotes is “Life is 10% what happens to you and 90% how you react to it.” (It’s a paraphrase of a Charles Swindoll quote.)

Think about that. Feels empowering, right?

I know and work with a quite a few CEOs. It always strikes me how the great ones react to difficult situations. I’m talking about really stressful stuff like repeated rejection from investors, missing payroll, cofounders leaving, or major pivots.

I’ve blogged before about founders being mentally prepared for anything because shit will happen, guaranteed. But how do great CEOs react when things actually go south? Here’s what I’ve learned from them:

Do:

– Analyze it. What just happened? What caused it to go bad? How can it go better next time? Don’t be a slave to your emotions. Make a list. This is your business, so be businesslike about it. Only then can you …

– Learn from it. Avoid the vicious cycle of the same issues happening over and over. And use that knowledge to salvage the situation/relationship if at all possible.

– Be accountable. What could you personally have done to get the results you wanted? Sometimes there’s not much else you can do, but you’d be surprised how often the answer is “Yeah, I guess I could’ve done ‘x’.” CEOs who aren’t accountable will fail. It’s that simple.

– Be honest and fair. Everyone gets their ass kicked. Keep your integrity no matter what.

– Stay in tune with your passion! Never forget why you started your business and why you’re on a mission. If you’re not passionate about it nobody else will be.

Don’t:

– Blame others. Maybe this happens because people are scared of being wrong and looking like a screwup. Good news: Everyone is wrong and screws up on a regular basis ‘cause we’re all human! Give yourself a break and accept that you’ll make plenty of mistakes.

– Get discouraged. Crappy stuff will happen. Getting discouraged is contagious and if you make a habit of it your team’s morale will sink.

– Get angry. Anger is sometimes a defense mechanism because it’s easier to feel angry than disappointed in yourself. But it’s counterproductive to your mission and robs you of creative, positive energy. If you feel your blood boiling take a break, a walk, meditate, anything to cool down and regain your perspective.

– Panic. I’ve seen CEOs completely change their strategy after a lost deal or one bad meeting with someone they respect. Stay confident in your mission! If you stay cool and focused, so will your team.

– Burn bridges. Get used to rejection – it’s part of startup life. Even if someone says no, maintain the relationship and don’t write anyone off. You’ll gain respect as a leader by being professional when you don’t get what you want. Also it can be great for your business: sometimes today’s “no” becomes tomorrow’s “yes”.

Startups are freakin’ hard and as CEO you’ll be challenged more than you thought possible. But you control much more than you think. 90% of life is how you react. Your move.

Passion vs. The Emotional Rollercoaster

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Founders need to be passionate about their business. But as a startup grows it can be difficult for entrepreneurs to separate passion from unhealthy emotional reactions. They’ve probably poured their heart and soul (and maybe money) into the venture. It’s their baby, and it’s personal. But if they take every up and down personally, they’ve bought a ticket on the emotional rollercoaster. And the results are going to make everyone nauseous.

I’ve witnessed the amusement park founder in action. On good days (e.g. glowing media coverage) he thought his team was invincible. On bad days (running out of money) he would scream in an employee’s face in front of everyone, ranting about their incompetence. Emotionally ill equipped, eventually he refused to give up control and the company went under.

It may require strategies to emotionally invest in longer term goals instead of daily wins and losses. But if leaders can keep the passion burning and stay off that rollercoaster, everyone can enjoy the ride.