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The opinions expressed by the entrepreneur's contributors are their own.
The following excerpt is from Scott Duffy's book Breakthrough. Buy it now on Amazon | Barnes & Noble | Apple books | IndieBound or click here to buy it direct from us and SAVE 60% in this book if you use code LEAD2021 by 4/10/21.
I often ask the following question to the CEOs of entrepreneurs: What is your responsibility as the person responsible for your company?
This is often met with a blank look. Sometimes I get a vague answer like, “Well, I do a lot of things. I think my job is to keep the company or project moving. "
These are not useful answers. It's no wonder that many CEOs just bounce off between crises without really thinking about how to proactively advance the company.
Before assembling your team, you need to be absolutely clear about what role and day-to-day tasks the company will lead. Knowing what to focus on can also help ensure that your time is not being spent in other people's businesses and preventing them from doing their jobs.
Below are some of the most important parts of your daily job description as a CEO:
The CEO is responsible for the company's vision and direction
This seems pretty straightforward, but it is more complicated than it sounds. You need to look to the horizon and know where you want your business going. This type of vision is different from a goal in your mission statement. Your vision is a measurable three, five, or ten year view of where you want to be.
I recommend starting with the sales and profits you want to make and then working backwards to see what it takes to get there. You need clear drivers, processes and responsibilities to steer the progress of your company on the way to your vision. In short, having a vision is worthless unless you can develop the details to achieve it.
Related Topics: Creating a Tribe That Will Help Your Business Succeed
The CEO has ultimate responsibility for cash.
You may think that watching the money is the job of the CFO, the bookkeeper, or the bookkeeper, but no.
For every company, cash and access to cash is the elixir of life, the air it breathes. If you run out of money, you're done. You will be surprised how quickly a fast-growing, high-margin company runs out of money. You may need to use cash to add to your working capital, build inventory, or fund your accounts receivable. Managing the financial ups and downs is ultimately the responsibility of the CEO as it is vital to the health and survival of your business.
The CEO needs to make sure that the right people are in the right place at the right time.
CEOs may be sentimentally attached to long-term employees who have been there from the start. They refuse to let them go or put them aside even when they are no longer beneficial to the company.
As the business grows, you need to make changes. The people who brought you to a cusp may not be the people you need to take you to the next level. The CEO, harsh as it may seem, has to be dispassionate about hiring and firing. If you can only afford two sellers, these have to be the best two sellers you can find. Some people work better in startups than in more mature companies. Recognize the strengths and weaknesses of your employees and don't wait too long to attract new talent. The wrong people will overthrow you.
Related: 5 Steps to Take Control of Your Personal Brand
The CEO is responsible for the most important relationships.
The CEO must “own” the most important relationships in the company, e. B. to bankers, major vendors, the largest customers and shareholders. Any outsider with the power to change the future of your business – through ordering, selling, lending, etc. – needs to have access to you (and you to them). You want them to be comfortable any time of the day or night when they call you. Too often, entrepreneurs pass these relationships on to high-level employees. But what if these employees go and take the accounts with them? You cannot and should not be in control of every contact. But do you know who the keys are and keep them close.
The CEO needs to have processes in place to continue learning.
You did your market research before you started your business, right? At that time you had nothing on the line. But now that your life is anchored in your business, it is a good idea to keep a careful eye on what's going on in your industry, with your competitors, and with your customers.
Business is changing faster than ever now, and the annals of recent corporate history are littered with the bones of companies that haven't evolved or adapted fast enough to survive the rapidly changing environment. Attend conferences, speak to advisors, and meet your rivals. Use tools like Google Alerts and LinkedIn to keep track of what's happening in your space and outside the company. Read specialist blogs and ezines. Learn and sell when you're on the go, whether it's in a one-on-one meeting or meeting with thousands of attendees, or when meeting customers at a small event. Hire a business coach and assemble an advisory board to gain experience and wisdom from people who can help you keep up to date.
Related: What's Your Entrepreneurial Kryptonite?
The CEO has to be a cheerleader.
You need to let the rest of the team know what's going on, explain the company's results, and involve employees with your vision for the future. If you want them to get a stake in what you sell, you need to balance their interests with yours. Often times, the best way to do this is through open and engaging communication.
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