Founders' Choices Vary

What difference does it make when you’re the CEO of “a” Company or “your” Company? Are the rules or authority the same for the founder/CEO that the acquired CEO may have? There are many variables that can dictate what authorities or how a company operates that can have differences in the inner workings of a company. How are you funding your growth: Private equity funds, venture capital, company cash flow, bank lenders, etc. Any of these can alter how you maintain or grow your company.

?Percentage of Ownership or Stock ownership. Do you have a functioning Board of Directors? There are many challenges that a founder will face in growing their business. ?Many founders may have difficulty ?of “letting go” of managing every aspect of running their company. The company’s culture, direction, vision, organizational structure, and oversight. Many founders feel like they are on their own!

?However, many founders built their initial foundation with friends, relatives and other associations and during the “go, go” period everyone is excited to participate and may have been given positions well beyond their abilities and experience, including the founder! Changes are constantly creating chaos or confusion. Instead of everyone doing many things, responsibilities become more compartmentalized. Many start to promote their staff, and replacements are needed. and frustration and stress can be overwhelming. This is a difficult period for many Founders.

?There comes a time when a founder seems overwhelmed and under pressure of how to grow their company’s top line while developing and building leadership/management, systems, procedures, cost controls and capital requirements. This takes the ability to demonstrate that you have more than just a good idea, product or service, but the ability to grow and demonstrate success. By doing so, you can attract experienced management, relationships with lenders, better terms with vendors, etc.??

?Some of the companies cannot grow beyond their founders’ own capabilities after their initial growth spurt. Many have trouble with needed capital, and necessary changes and bringing in some controls. The growth in administration with people and functions may feel like the founder is losing control over everything. Over the years I’ve dealt with companies that grew themselves right out of business, running out of cash even with great margins.?? Some have trouble bringing on someone who may know more or seem “smarter” and can feel like they’re the answer or a threat. Their self-confidence can become a larger ego and that can be another issue by itself.

The reason I talk about this, ?I had these experiences during my first few years in Growing Bullet Freight Systems. And since, I’ve sat with many peer groups of founders and CEO’s and have discovered its more common than I thought. And now as the CEO of the Boardroom and consulting with several different industries and companies, I see these same challenges.

Does this sound like a negative outlook on starting and building your business? NO! It’s more of a warning bell, to become more self-aware of being an entrepreneur. With the national figure of failing businesses, ?as reported by the U.S. Bureau of Labor Statistics, approximately?20% of new businesses fail within the first two years, with the failure rate rising to around 45% within the first five years and 65% within the first ten years.?

Making? decisions is a key component of leadership. Keeping controlled growth, strategy and focus can be diluted with all the other issues a company can face. In order to increase your business’ success, and make well informed conclusions, come and join a CEO Peer Group and receive unbiased, honest and clear guidance in your critical decisions. We are building new peer groups and invite you to become a member and improve your knowledge and direction to assist your journey in both life and your business.

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