Is your company a tourist destination?

As I have built HungryWheels one wheel at a time, the wheels of time have taught me about life as much as about the life-cycles of a business, its actors and the stage. I do not profess to have learnt it all, however, time has been kind to reveal a few things. Today, I accept that companies are nothing but organic living beings, which are born, grow, proper, age, decay and die.

Time has also shown me the various actors in my startup journey. Let's just say that I now see any company as a tourist destination. I call those who journey along with me - 'Tourists' eg. colleagues, managers, co-founders, vendors, investors, family, consultants, et all.

Each chooses the destination which fits their aspirations, budget and life stage. They come and go, some stay longer than others, some fall in love and others out of it. Each tourist has a story to tell and may even boast that their time was the best time of the destination (that's if the start-up is lucky). Sometimes they show you gems hidden in your own destination ((err company/ startup).

Much like the tourists, companies also goes through the ageing process. Those that got you there may not be able to get you where you want to go - becomes the biggest elephant in the room. How long you stay at the helm, and how much equity you retain is a function of how many times are you able to burn your self image to take on the new avatar to match the ageing process of your company. At the start its romantic to think everything is possible for you. Then jumps in probability and lastly plausability of your promise. None knows and mostly time alone if left to tell the real story. If you don't believe me, you can look into the startup world to see big titans fall and rise to become demi Gods/ Godesses and fall yet again.

I have been writing these realisations down in my diary, and just when I thought of sharing these gems, I found an eloquent book. So, I am taking the liberty of sharing an excerpt from 'Narrartives and Numbers' by Ashwath Damodaran, which illustrates what I wanted to share albeit in a better and simpler manner.

Early in the life cycle, founders need to be compelling storytellers, capable of convincing investors of the viability and potential of a business, even when there are no results (or even products) to point to.

As the firm transitions from the idea to the business stage, the promoters of the business need to bring business-building skills into the equation to convert promises to numbers.

When the firm starts to grow, the test for managers is whether they can start delivering results that back up the story.

In maturity, managers need to frame their narratives to match up to the numbers that are being delivered; continuing to tell a growth story when a company's revenues are flat will lead to a loss of credibility.

In the final stages, managers will be tested on their ability to get past denial, accept that the business is in decline, and act accordingly. Figure 15.1 illustrates these shifts.

Early in the life cycle, having the right person at the head of the company is key to whether it succeeds or fails, but as a company matures, there will be a point in its life cycle, especially if it has found a formula that works and is in a settled business, when it may not matter much who its top managers are.

Eg. ExxonMobil's value is unlikely to change much with a different top management team, and that may well explain why you could be an investor in ExxonMobil and not know who its CEO is, or even care. In contrast, it would be foolhardy on your part to invest in a GoPro or Uber without finding out more about who runs these companies and without being comfortable with their styles and philosophies.

If you buy into this notion that the managerial challenge shifts as companies move through the life cycle, it stands to reason that the qualities you look for in a CEO are different at each stage.

Those who have had the benefit of time, scale and collective intelligence of a long run know that the the story-teller must change with the story. The actors who tell teh stories of our tourist destinations have to be at the right place at the right time.

Early in the process, it is the visionary CEO who is best suited to telling the company's story and convincing others that a business idea has potential. As you move from idea to product, while vision is still critical, it has to be supplemented by the capacity to build a business.

As the business takes hold and you seek to scale up, it is the opportunistic CEO who finds new markets and businesses that the company can enter to grow efficiently.

Once the company is established as a successful business, the CEO has to learn how to play defense, as competitors are drawn by success to imitate and improve on the company's offerings.

As the business moves into its mature phase, the CEO has to be a realist about growth and its costs, recognizing that going for more growth. at any cost, can be value destructive.

In the decline phase, the CEO has to be comfortable with the conclusion that the best course for the company may be to shrink, liquidating assets that others are willing to pay higher prices for or that have outlived their usefulness.

As a founder I am mindful of my weaknesses and strengths, I am more accepting today of who I am not, and what I can't do.

Founders are responsible for curating the tourists. Why you may ask? Because we alone run the risk of the wrong story or half story or no story being told about our destination. The wrong story will dissuade other great future tourists from coming, and all because we invited the wrong tourist during the wrong time/season of the companies cycle. Hence, Ashwath Damodaran's mapping of 'Investor Challenges', is also important to understand. As this tourist is the one of the key visitor, who can make or break your tourism economy.

I am grateful to everyone who had knowingly, unknowingly, willingly and unwillingly helped me learn that the only real luxury in life is time. And there is not greater teacher than time.

If you have any suggestions/ edits/ additions/ questions i'd be happy to edit/ answer/ update this article.

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