I’m the CEO and cofounder of RentSpree, and I write about real estate business. RentSpree is reimagining how people rent homes.
According to recent data from the Bureau of Labor Statistics, 50% of startups fail within their first five years. Seven years ago, I co-founded real estate software company RentSpree shortly before graduating business school. During my tenure as CEO, I have had the privilege to lead this company through its pivotal first few years, having successfully completed three rounds of financing, grown our employee base to over 200 full-time employees and helped more than 1 million renters through our platform.
But make no mistake: It’s impossible to make perfect decisions and avoid all missteps. The most important thing CEOs can do is take every step of the journey as a learning experience. This helps you do better in the future by avoiding the same mistakes. In honor of our seven successful years in operation, I’d like to share seven key lessons that shaped me as a CEO in hopes that you may learn from them:
1. Fail fast and make decisions faster.
Failure is an inevitable part of the business journey. As a CEO, I’ve learned that failure should be embraced as a valuable learning opportunity rather than something to be feared.
However, you need to have enough self-awareness to know when you’re failing so you can pivot. Making the decision faster helps you to course-correct and arrive at the optimal decision much sooner. In addition, fostering a culture that encourages experimentation and innovation is essential, so employees feel empowered to take calculated risks.
2. Not everyone is your target customer.
Understanding and exceeding customer expectations is crucial to building long-term loyalty and driving repeat business. However, avoid the critical mistake of over-indexing one person’s or a small group’s opinions—they may not be representative of the larger population. Learning the difference between feedback and criticism will help you make necessary adjustments.
In addition, data can help you determine who your real customers are so that you can spend your energy on them. Building strong customer relationships and providing excellent service is essential to a successful business strategy.
3. Know the difference between confidence and arrogance.
Confident people are naturally easier to follow, but arrogant people find it challenging to get people to trust them. Upholding a solid moral compass and leading with integrity is not only the right thing to do, but it also contributes to the long-term success and sustainability of the business.
4. Successful people put themselves out there.
You need to become comfortable with rejection. Building a solid network is a long process but pays off over time. I’ve learned the importance of networking and building meaningful relationships with industry peers, mentors, and advisors. Look for events in your industry, step out of your comfort zone and strike up a conversation. Meeting people in person is always recommended, but we live in a digital age, so leverage social media platforms like LinkedIn that are designed for networking.
5. Hire people who are smarter than you.
Intelligent and capable employees can bring fresh perspectives, unique talents and diverse expertise to the table. They can challenge your assumptions, push you to think critically and inspire innovation within the team. By hiring individuals who are smarter than you, you can tap into a broader range of ideas and solutions, leading to better decision-making and improved outcomes. Additionally, sharp employees can take on complex challenges, freeing up your time to focus on strategic planning and leadership responsibilities.
6. Stay humble and never stop learning.
Today’s fast-paced business environment requires leaders to constantly update their knowledge and skills. Continuous learning helps leaders become more agile, better equipped to handle challenges, and more capable of leading diverse teams. The moment you think you “know it all” is really the first step toward disaster.
At the same time, don’t forget that the people you see who are great at something rarely become that way naturally. It may seem effortless now, but that’s often because years of practice are happening behind the scenes.
7. Evolve with the times.
I’ve learned that being adaptable and willing to evolve with the times equipped me to succeed in today’s rapidly changing world. The business landscape, technology and societal norms constantly evolve, and leaders must keep up to remain effective and competitive. Evolving with the times means being open to new ideas, embracing change and continuously learning and upgrading skills. Being willing to change will make you more agile in responding to disruptions and crises and finding innovative solutions to complex problems.
My seven years as a CEO have been filled with valuable lessons. From embracing failure as a learning opportunity to understanding my true customers, these lessons have shaped my approach to business. Plus, building a solid network and upholding integrity are a critical aspect of my business philosophy.
No matter where you are in your journey, apply some of these tips to increase your chances of success.
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