From Entrepreneur to CEO – pt 2
By VICKY BROWN
In last week’s episode we covered the ‘leading people’ side of becoming a CEO. Well, this week we’re going to cover some of what I call the technical CEO responsibilities.
Now, I’m going to suggest that you study a few business frameworks, find one that resonates with you and how you want to run your business, and execute on it.
For me, early on, that framework was based on the E-myth Revisited book by Michael Gerber. I really loved it because it focused on systems and processes – and I just loved that -it made everything so clear for me.
But, find what works for you, and then get to it.
Now, keep in mind, no matter what framework you choose, You’ll need to get familiar with the tools of the CEO trade. Not because they’re fancy, but because they have real value, and you’re going to need them. Here are just a few:
Metrics – they’re like a yardstick that businesses use to see how they’re doing. They can measure all sorts of things, from how much money they’re making, how happy their customers are, how efficient their processes are, to how well their employees are doing. They help businesses set targets, track progress, and make decisions. They’re really handy because they turn complex things into simple numbers that you can compare over time or against other businesses. But what’s important to remember is that what works for one company might not be as useful for another, because every business is different.
Cash Flow is the amount of money coming in and going out of the business. This is a critical thing to understand because many a company has gone under saying “but I have sales – what do you mean we’re broke?!” Yep, that’s a cash flow issue. The money may be coming, but it’s not there in time to cover the bills when they’re due. So yeah – you really need to understand Cash Flow
ROI or Return on Investment – this is a measurement you use to figure out how much you’re getting on an investment. Now, it might be money – you invest in a stock and you get a dividend. Or it might be something else like knowledge (you invest in a course and improved your skill set), or opportunity (you invest in a mastermind and meet incredible people who can help you grow your company).
Burn rate – this is a term used a lot in start ups, particularly in start ups that have investors, because it basically means how fast are you spending the money. When you look at a company’s burn rate, and the amount of cash they’re bringing in and the cash on hand, it gives you a picture of how far they can go before they’ll need more money
Churn rate – if your business has a subscription model, then this is the rate that customers stop subscribing to the service. A high churn rate is a bad thing, because it means you’re loosing lots of customers.
Bootstrapping – this is what lots of entrepreneurial companies do, especially in the beginning. It means they use money from the founder, and then money the business makes, to start and grow the business. So no outside investor money. In fact, some companies may never take outside money.
Value Proposition – this is the unique mix of products, services and benefits that your business offers to your customers, in comparison to your competitors. So the secret sauce that makes you different from everyone else. It can take a while to really define your value proposition – it’s not as easy as “oh, we have excellent customer service”
“… And remember, when you truly put on that CEO jacket – well just know that your job will be completely different than it is today. I know mine is. You’ll realize that your simple thought time, is 100s of time more valuable than your ‘doing’ time.“
Due Diligence – this is when someone does an analysis, or audit to confirm various facts. It’s traditionally used when one company is going to acquire another. But it can also apply to all sorts of situations where you want to be sure the facts are the facts. Something like, doing your due diligence before you hire that Vice President of Accounting for your company.
KPI’s or Key Performance Indicators – are like the most important metrics for your business. They’re the ones that really show whether you’re hitting your goals. Each business will have its own KPIs based on what’s most important for it. For example, a retail store might focus on sales per square foot, while a website might look at the number of visitors or how long people stay on the site. KPIs help you keep your eyes on the prize and make sure you’re moving in the right direction. They’re a bit like the vital signs doctors check when you’re in the hospital. But instead of measuring your heart rate or blood pressure, they’re checking the health of your business.
Alright, that’s a lot around the nuts and bolts of being a CEO – but knowing the lingo isn’t the most important thing.
Preparing yourself for this journey is the biggest piece – because it’s mostly internal work you have to do on you.
Don’t waste another minute trying to figure out how to get your business going and what should come next.
Grab your Free 3-Step Leader’s Journey Business Builder course, and get freedom and peace of mind, knowing you are on the right, proven track.
Look carefully at your business, and your goals. And now, figure out what would be the highest and most valuable version of your in leading that business. And commit to being that person today.
Learn what you need to learn, put yourself in uncomfortable situations that force you to grow – hey, join that mastermind, get a coach, accept that speaking engagement, write that book.
And surround yourself with people smarter than you. People who have already done what you want to do. They can’t do it for you, but they might be able to help you avoid some quicksand pits along the way.
And remember, when you truly put on that CEO jacket – well just know that your job will be completely different than it is today. I know mine is. You’ll realize that your simple thought time, is 100s of time more valuable than your ‘doing’ time. Oh yeah – you’re gonna get transformed, so buckle up.
Now, don’t get me wrong, the job can still be hard – in fact even harder than before – but it’s also massively more fun and fulfilling.
And don’t let yourself get trapped in that ‘oh, I can’t do all this, I’m not a CEO’. Well, I would beg to differ. You stepped out on your own didn’t you? Remember the amount of courage that took. And you committed to your vision – well, that took massive courage too. So this CEO challenge – well, it’s right up your wheelhouse.
I love this quote by Bob Proctor:
The reason most people don’t make decisions is due to the fact that they can’t see how they’re going to get there.
So, what do they do?
They keep doing the things that they can see how they’re going to get there.
And this is why their life never really changes.
So make the decision, go after the things you can’t readily see how you’re going to get there, and watch your business and your life, change right before your eyes. Mine did.