Even highly successful companies have tremendous problems. Just look at Groupon (NASDAQ:GRPN). Not long ago, it was a darling of the tech world. But lately, there has been buzz that the company’s CEO and co-founder, Andrew Mason, may get sacked!
So how can startup CEOs deal with the inevitable challenges? To see, here’s some helpful advice:
Damon Schecher, CEO of Shipwire
"During tough times, I remind myself that my board and the public want me to succeed, but they also want me to be authentic about the problems and the path forward. They prefer brief phone updates. They prefer being engaged as thought partners. And in return, over the years they've given me surprising leeway and loyalty."
Scott Sellers, CEO and Co-Founder of Azul Systems
"Every CEO deserves a learning curve. Your board and investors will give you the chance to succeed, however, you have to be dedicated to not only executing on strategy - but even more importantly - being an excellent communicator. I would break it down to four critical success factors: 1) Your priority needs to be your people. Be visible, support your team, and help them stay focused on what they can control. 2) Listen to what the market is telling you. Sometimes the business model that built your company needs to change. 3) If you have to make changes (in either people or strategy) – make them quickly, and openly. 4) Know what you are good at – building a business takes a different skillset than sustaining one, or executing a turnaround. Finally, bring on some trusted advisors as part of your core management team and board that can come up with creative ideas as well as execute on them in the eyes of the market."
Ethan Oberman, CEO of SpiderOak
"The ascendancy of any company is never a straight line but rather littered with bumps, obstacles and challenges along the way. These 'scars' give a company character and an inherent ability to deal with those days or months that don't go as well as others. As CEO, there is no substitute for an uncompromising belief in the company's vision. Emotions must never be allowed to swing wildly in one direction or another but should remain balanced - showing excitement and disappointment - but never to the point of alienation. These two elements combined are the key to weathering difficulties and finding success on the other side."
Larry Lang, CEO of Quorum
"As a Duke basketball fan, in difficult times I recall Coach Krzyzewski’s philosophy of 'next play' from his book, 'Beyond Basketball'. It’s a reminder not to dwell on whatever bad thing recently happened (or good thing, for that matter), lest the past distract you from the task at hand. Instead, pause to gather any lessons, but mainly - move on."
Marcus Ryu, CEO of Guidewire
"CEOs must adapt their message, framing, and diction just to get their point across to multiple audiences — from customers to investors to the board — while staying true to the same reality. And great CEOs can inspire and motivate all of them."
Tom Taulli is the author of How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO and High-Profit IPO Strategies. Follow him on Twitter at @ttaulli.
