The Startup CEO Mindset
How military discipline can help you overcome business obstacles
In 2022, I came to read Good to Great by Jim Collins. It’s one of the best business books I have read so far. One core principle of this book is the Stockdale Paradox. And I think it perfectly illustrates the mindset you need to have when you start a company.
What is the Stockdale Paradox
The name “Stockdale Paradox” comes from James Stockdale, a United States Navy admiral, and prisoner of war during the Vietnam War. Stockdale was held captive for more than seven years. During this time, Stockdale observed that the prisoners who were most optimistic about their chances of being released were often the first to die. They clung to the hope of being rescued quickly, only to be devastated when they realized this would not happen. For example, soldiers with a family hoped to be released for Christmas only to see their hope crushed on December 27 when they realized it did not happen.
Stockdale found that the prisoners who survived were those who faced reality head-on. They acknowledged the severity of their situation and understood that it was unlikely they would be released anytime soon. But they refused to give up hope.
The Stockdale Paradox is based on balancing two seemingly contradictory traits: unwavering faith and an unflinching commitment to reality. If you focus solely on optimism and positivity, you will be blindsided when unexpected challenges or setbacks come at you. If you focus solely on reality, you quickly lose hope and give up in the face of adversity.
How does it apply to startups?
As a startup founder, you must have the courage to face reality and acknowledge the severity of your situation. As the CEO, all you have is nothing more than a vision and a (hopefully working) MVP.
You must have faith that you will overcome the challenges in front of you. You must have a clear vision of what you want to achieve and a plan for how to get there, even in the face of obstacles.
You must also face reality and acknowledge that you must keep delivering, get customers onboard, iterate on your products, and increase revenue.
I have seen many CEOs be too optimistic only to see their hopes being crushed. It is very easy to believe that a potential partnership with a big company, closing one big contract or a new key hire will solve all our problems. And that our company will soon be on a growth path to the moon. The reality most startup CEOs forget is that one good event will move metrics in the good direction by a fraction of what you want. You need to keep delivering to achieve success constantly.
Never lose faith. Always face the harsh reality when you wake up and look in the mirror. And keep executing.