8 Valuable Lessons from a First Time CEO
Advice for business owners to survive year one and beyond
Supply chain issues, zero covid policies, price-gouging, shipping delays, inflation and a war. Last year was crazy.
It was also my first year as a CEO of a multi-million dollar company. A true trial by fire, in one of the most turbulent macroeconomic environments in recent history.
Below are the 7 powerful, ego-destroying, self-doubt-inducing lessons I learned.
Lesson #1.
If you give a job, you’re a friend… But, if you ever have to take that job away, even if it’s their fault, you’re the enemy.
Your friendships will always be fragile with people that you’re financially responsible for. No matter how kind you think you are.
Lesson #2.
People don’t differentiate between turnover and profits.
They see the sales, but never the costs. So if you’re going to be transparent, make sure you’re transparent about costs too.
Lesson #3.
LTV (lifetime value) is the new conversion rate.
It’s not about how many you sell, it’s about keeping customers. Real profits come from repeat business, not initial sales.
Lesson #4.
A loss is only a loss if you refuse to correct it.
I had a product that was printed incorrectly and cost me $17,000 — but instead of taking the loss, I spent another $7,000 to create something worth selling that could eventually recoup the full $24,000 in investment.
Lesson #5.
Diversify your supply chain.
Even if you think you don’t need to, you never know when manufacturers will let you down, sometimes through no fault of their own.
As the saying goes, don’t have all of your eggs in one basket.
Lesson #6.
Choose PR over Profits.
If you throw a rock into a still pond, the silent ripples will have an affect into the distance. The same can be said for ‘word of mouth’.
It’s better to keep someone happy, because if they’re not, they’ll go off and say damaging things about your business. Whether they’re true or not.
Take the loss and not the damage.
Lesson #7.
Don’t let your competitors know about your successes, only your failures.
I hear from all of my competitors who like to boast and say “we’re having our best year ever.”
If it’s true, all they’re doing by saying that is incentivising more competition. It’s better to never broadcast your wins… Let them think you’re failing.
Because if they can smell a winner, they’ll just copy it.
Lesson #8.
If you’re going to fail, fail fast.
Not everything you do or try will be a winner. But fear of failure will stifle any innovation, so instead, your aim should be to fail fast.
I failed a lot last year, but I did it quickly and learned from those mistakes.