Hey Founders, Act More Urgently

Hey Founders, Act More Urgently

Your company is probably going to go out of business in the next 12 months.

You’re never going to get that acquisition offer from that large, blue-chip strategic.

You’re dreams of being a leader in your field are all but over.

Unless. Unless, you act with urgency right now. This isn’t business as usual or anything like it. I’ve been talking to founders for the past several weeks and I’m shocked at how matter-of-fact many are in the current operating environment. Right now, the vast majority of start-up leaders aren’t understanding the huge shift going on in our society and our economy. This isn’t something that’s just going to blow over.

The very best founders are taking swift and decisive action. I’m imploring founders of start-ups to meet the moment. Here’s how.

1) Identify the societal and economic shifts that matter most to your industry, your customers, and your employees. Be specific, not 30,000 foot. Talk about these shifts like the guy on the street, not like the guy at McKinsey. Do your best to prioritize them (this is hard, but best guess). Do this work today, by COB.

2) Adjust your strategy and operating plan to meet the new reality of the market. This isn’t always a negative thing. Several companies in my portfolio are having amazing years and can do even better by finding additional ways to help people through this crisis. There’s a unique opportunity here for companies to increase brand awareness by being a visible solution to the new reality of everyday life. But no one can rest on the laurels of an operating plan that was baked months ago. As annoying as it is, you need to start over. Do this work this week.

3) Communicate and align your various stakeholders. A plan is just a plan without buy-in. You need to start communicating early and often with employees, customers, partners, investors, and board members. Share with them how your team sees your new reality, get their counsel on how to adjust, and really listen (hint: the answer probably isn’t “infuse more capital!”). Become a sponge for their input in a way you weren’t before. Do this work by next week.

4) Focus on your core capabilities, competencies, and assets. Now is not the time for adjacencies or “nice to haves.” Now is the time to use your core to produce value for an economy and a population that is hurting. Make sure you understand the business you’re in and make it a point to figure out how your business can be part of the solution — don’t sit this one out (you’ll regret it). Do this work daily.

5) Be visible — don’t retreat to safety. Investors want to know you’re in control. Customers want to know you’ll continue to meet their needs and exceed their expectations. Employees want to know you’ll support them in their new reality. Produce content and be out there. Connect the dots for how you’re helping and, in turn, drive awareness for your company. Folks are both hungry for content and devoid of leadership right now. Meet the moment for your company. Start this work now.

What a time to be a start-up founder. I implore you to act with urgency, serve your stakeholders well, and build your core leadership skills as you go. Please feel free to reach out to me if I can help.