During the period between the 9th of Av, when the fast commemorating the destruction of the Temple takes place, and the 16th of Av, Israeli Valentine’s Day, I was reminded of the time when I was an entrepreneur and beginner CEO of a startup company.
Manic depression - fast transitions from euphoria to difficulties
Different memories arose; from fast transitions and a lack of separation between euphoria and success, to sudden and unexpected encounters with a difficult and painful reality.
We were a small company, yet we managed to succeed in scheduling a visit from the executives of an established European company that was interested in our technology (on power point).
In an attempt to impress them, we hired ten students to sit with their computers in the company’s corridors (with family photos on the tables), so that the company would look bigger. At that time, we were located in a building that had previously been used as a sewing shop and, therefore, was offered at a reasonable rental cost. We paved the mud puddles – thanks to Petah Tikva municipality – at the entrance to the building using interlocking stones, so that the guests did not feel as if they had arrived at a third world country’s offices. The area has since become a bustling hi-tech center.
We held in hand a strategic cooperation agreement
The visit was an impressive success. It turned out that the product we had begun developing was exactly what the guests were looking for, aligning both with their products as well as with the organization’s business strategy. Four weeks later we held in hand a draft of strategic cooperation agreement, the dream of every company at this stage, which was to our satisfaction, to the investors’ relief, and, of course, a boost to the morale of our employees.
Nasdaq collapsion made this agreement as good as tissue paper
However, soon after the Nasdaq collapsed, in what would retrospectively be called ‘the bursting of the bubble.’ The European company we had made a business agreement with announced the layoff of 20,000 employees. Needless to say, their desire to invest in cooperation with a Middle Eastern startup was lost. It was not difficult to recognize the disappointment among investors and employees. My partners, who were the living spirit behind the technical negotiations, also became depressed, though I didn’t have the privilege of getting depressed or showing my disappointment.
I had to broadcast a business-as-usual
The investors, who just before criticized my decision to rent offices suitable for only 50 people and not 200 as they urged me to do, changed direction overnight and instead became outraged at the waste of such a large office area, attempting to convince me to move to even smaller offices.
You find yourself thrown from focus on 'time to market' to 'survival mode'
In a short moment you can find yourself thrown, without preparation, from a mindset focusing on rapid growth – where the only parameter is time to market – into survival mode. My partners did not hide their concern and disappointment. The investors who had been urging the company to spend more money to achieve results immediately saw their dreams recede and were forced to sit on the fence and wait for the markets to recover.
From 24 flavors of ice cream to "what will happen" and "how long would the money last for"
The employees who until a moment ago would stream in, asking questions like “why don’t we have laundry services here,” (’24 flavors of ice cream’ in today’s terminology) started posing more fundamental questions like “what will happen” and “how long would the money last for”. It was understandable, as they were watching their friends in other companies being fired. Luckily, I had been in the industry during previous waves like this, albeit not in the position of CEO, so the fall of the market and layoffs in the industry were not strange to me; however, I still had the feeling of Cinderella when she suddenly notices that the clock shows five minutes past midnight, and that what was until a moment ago a noble horse had turned into a fat rat.
Sympathy and empathy for CEOs who have to go through the current crisis
Seeing the current crisis, I feel sympathy and empathy for the other CEOs who have to go through the crisis. For most of them, this is the first crisis after many years without one as serious as this. It is much easier and more exciting to manage employees during times of growth, when the competition is merely for treats and there is no budget limit.
From "we are all family” to layoffs
As a CEO, there is nothing harder than layoffs. Even when I fired people who deserved it I lost sleep, let alone when I had to say goodbye to excellent employees after a long period of time selling everyone the narrative of “we are all family”. It doesn’t really matter how good your management is, or whether you ‘won’ and have investors who are also human, you are alone in this thing. You can’t really share the responsibility nor can you open up about your doubts in a conversation, because this is all seen as weakness.
I need to thank the company's chairman for being there with me
The person who helped me during these times was the chairman of the company; he was a cool, sharp, and experienced human being who was there to listen, direct, and help. This is another opportunity to extend my thanks him.
So, the point it, don’t try to look for magic solutions.
Running a marathon in sprints
This is a reminder that you are running a marathon in sprints. It doesn’t matter if you sail a racing boat or an aircraft carrier – all of them are challenged to drive when the sea is rough. But we are on a roller coaster, and though there are dips, there are also ups.
You need to find yourself someone who will support you
You need to find yourself someone who will support you, with whom you can be open and think out loud with about your challenges, both professional and personal. Someone experienced, but unbiased. In rare cases, it can be a partner, a good friend, a spouse, or an external consultant. You need to manage yourself as a resource that needs to be looked after and give yourself what you would give to any of your managers if they were in a similar predicament.
And, if we return to the opening, I wish you an easy fast and a happy Love Day.
