10 traits that separate the top 10% of startup CEOs from the rest

September 28, 2016

A CEO is the cornerstone of a company. The CEO sets the vision and culture for any workplace, maintains the financial stability of a company and manages the company’s resources, including the workers, in an efficient way so as to obtain maximum profit. A startup CEO has to work with a compact team and lead them towards success such that they stand out from their competition. While every CEO has his or her own way of thinking, here are the Top 10 traits that the best CEOs share:

1. Best startup CEOs are resilient

Even if everything seems to go against them, the best CEOs continue to work solely on their belief and that often pays off. AirBnB took 1,000 days for its business to start working. Imagine if they gave up on day 999?

Again, while talking about resilience, how can we forget “one of the most impressive corporate turnarounds in history.” Alan Mulally guided Ford out of billions in losses and avoided bankruptcy without government bailouts.

2. Adaptability is what defines the best CEOs

Businesses that become stagnant ultimately die and we have seen numerous examples around. Remember Kodak and Blackberry? The best CEOs are well acquainted with this fact and hence work minutely on details with the changing world.

Adobe Systems CEO Shantanu Narayen didn’t see a future that included distributing software on physical discs. So he decided to change the widely-used Adobe Creative Suite to a subscription-based model which witnesses substantial rise in the number of subscribers.

3. Innovative and Imaginative

“If things are not failing, you are not innovating enough.” – Elon Musk

Relentless innovation is in the core of every great company. Innovation and imagination gives companies the extra edge over its competitors and the best CEOs have proved this to every inch. Elon Musk, CEO of SpaceX and Tesla Motors, has revolutionized entire industries with his focus on moving beyond the status quo.

Casper CEO Philip Krim, along with his co-founders, has completely re-imagined the process of buying a bed. From the price to the delivery – the mattresses are shipped compressed in reasonably sized boxes – this startup has thought through the entire process, including a 100-day trial period.

4. Clarity of Vision

Not only must the CEO realize the future of the company, he or she must grasp the concept behind every product of the company, and what the company aims to give to the society via that product. The best CEOs should be able to make the general public grasp even some of the wildest dreams which the public cannot imagine.

5. Ability to convince people

As captain of the ship, the CEO must be able to convince people to get on board with him. By people, we do not only refer to customers. We include employees, the investors, the mentors and all other interested parties. The investors often have conflicting interests with the customers. It is then the duty of the CEO to bring the investors and the customers in sync with his or her decisions and vision.

6. Being resolute

A CEO must anchor his company to the spot. The startup life is full of unexpected storms and disasters. The CEO must keep the morale and the belief of the employees high, and must be resolute in the face of adversity.

SpaceX and Tesla Motors both faced bankruptcy in 2008 and Musk was left with the decision of allocating the remaining funds between the two or focusing on one. However, he sighted the opportunities in both of his companies and decided not to give up on any one. Finally his risk paid off! Tesla is now trumping Ford and General Motors with a gross profit margin of over 20 percent and SpaceX has been chosen by NASA as the next generation company which will take astronauts to the International Space Station.

7. The ability to focus

The ability to shut out the external world, and to solely focus on the company and its work, characterizes every successful CEO. From the legend, Steve Jobs to the current CEO of Marvel Comics, Isaac Perlmutter, their unending focus and dedication has pulled their company up from tight stops to a successful franchise.

Another example of a great CEO who built a $1.3 billion company with the power of focus is Nick Woodman, founder of GoPro. The company was born out of a personal problem: not being able to take great pictures and videos while surfing. After months of intense focus, a prototype was built and just see where the company stands now!

8. The ability to HIRE and FIRE

The best CEOs hold the ability to inspire and convince experienced professionals to believe in their dream and hence commit to their startup, even though the job might pay less and have relatively less glamour associated with it.

Also, the best CEOs must understand where they have made mistakes in hiring employees. Being able to act courageously on that understanding is vital, otherwise unproductive employees in a startup will leech money from precious funds, and will eventually lead to the unmaking of everything that the startup aims to achieve.

9. The ability to LISTEN

Feedback comes from the employees, the investors and most importantly from the consumers. The ability to take feedback, hear opinions, handle criticism and act on them is what makes a great leader. And the best CEOs even give credit back to the ones who gave them valuable feedback.

10. Advocate their customers’ interests

A good CEO understands that the ultimate job of any company is pleasing their customers. Often, investors may ask for higher returns but at the cost of customer satisfaction but the best CEOs stand for the interests of their customers. Promising growth-stage SEO platform BrightEdge has all new salespeople build a website and use its tool for SEO as part of their training. Great CEOs keep finding ways to ensure that employees care and understand the plight of their customers.

Do you wish to contribute any points to this list? Or do you have any views regarding this list? Leave a comment and let us know!