Regardless of your political persuasion, Obama cannot save CEOs. In this issue, we talk about taking responsiblity for growing your company. I look forward to your comments. 

 

 Rick Erling
(972) 727-6880
 
 

Recently, I chatted with a CEO of a privately-held $70M VC-funded software company from Silicon Valley about his company's inability to grow top line revenues at an accelerated rate. His investors were going crazy because he was missing his investment milestones and were demanding performance. The CEO was concerned that his VC contract ratchet clauses would be activated and he would lose larger portions of equity if he did not execute fast.

The CEO went on to blast the U.S. economy and President Obama as the root cause of his firm's inability to grow business. His VP of sales, VP of marketing and VP of operations all said it was the economy -- what do we do?

He had hoped that the economy would get better and his company would return to the growth rate of previous years. As our conversation continued, the CEO discussed multiple new business opportunities he was considering that he had hoped would energize his current business success. As we talked, he went on to describe nine new business market directions he wanted to activate simultaneously that might supersize his revenue.

Nine new business launches!

Being an entrepreneur myself, having started three companies, and having worked with VCs and investors, his concern is legitimate but his action steps to resolve his company's inability to grow were misguided.

Do you know what your competitive advantage is?

Here is what I advised the CEO:

1. Stop blaming the economy. It is not going to get any better. Regardless of your political persuasion and who wins the White House next year, the worldwide economy is not going to get much better for at least 2 years . . . and maybe as many as 5 years.
    
2. Hope is not a strategy. Waiting around for someone else to adjust your success makes no sense. You are the CEO -- execution is the key to success. Take action now!
    
3. Growing your business is a premeditated step-by-step process. Where do you get your strategy from? Are you making it up as you go? Are you asking your executive team for input (and are they the same team that put you where you are now)? Learn how to grow your business, don't assume it just happens.
    
4. Money hides mistakes. Prior to today's current recession, some companies floated along having year-over-year success just hanging on. However, today's recession has exposed many companies' business model weaknesses because they must execute well to stay viable in today's economic environment.
    
5. Focus on Strategic CEO Productivity®. For CEOs, it is not just time management. It is the process of managing your business and personal time more effectively -- focus on reaching researched objectives based on best practices and market gap analysis on business goals. Trying to do everything simultaneously does not increase your success or your life satisfaction.
    
6.  As an CEO, you need to work less to earn more. When implementing the Value Forward 360° Business Success Assessment and Recommendations Program with CEOs, we often find that they are working 60, 70 or 80 hours a week. This time allocation to their business often reduces their business growth potential because their business is managing them - instead of them managing it.

So, if you are a CEO seeking to accelerate your business success in this crazy economy, focus on these six action steps and your business will succeed.

It is not what you say, want or desire . . . it is always what you do! In this economy, you must hunt now . . . or be eaten later!
 

 I welcome your comments.

 To your success,

Rick Erling