Holloway Editione1.0.0
Updated August 14, 2024Youβre reading an excerpt of Great Founders Write, by Ben Putano, writer, entrepreneur, and book publisher. Heβs the founder of Damn Gravity Media, a publishing house that inspires and educates tomorrowβs great founders. Purchase now for lifetime access to the book and on-demand video course.
Natalie is the CEO of an enterprise SaaS startup (real names have been changed to protect the guilty).
Every Monday morning, after making her coffee, Natalie checks her companyβs Stripe dashboard to review their Net Monthly Recurring Revenue (Net MRR), the companyβs North Star metric. Itβs lower than she expected to see, so she shoots a direct message to her Head of Growth, Miguel.
βHey Miguel, whatβs the status on our Q3 Net MRR? Weβre already a month in and donβt seem to be on track to reach the target. We need to keep up the pace or weβre going to get lapped. Let me know what I can do to help.β
Miguel is just getting ready for his week when he gets a push notification on his phone. Itβs from Natalie. Miguel reads the message. Then he reads it again. What does she mean by βweβre going to get lapped?β He feels his adrenaline rising and his heart starts to race. As the head of growth, the buck stops with him. Itβs his ass on the line if they donβt hit their Net MRR.
So Miguel copies Natalieβs message to his growth teamβs Slack channel and DMβs the product team lead as well. He adds the note:
βThis month is critical for us. Net MRR is our top priority. We have to keep pushing. Let me know what you need from me.β
The companyβs sales, marketing, and engineering teams all read the message. Their collective panic rises.
What does Miguel mean by, βNet MRR is our top priority?β they wonder. Do we need to change our focus, or just keep doing what weβre doing?
What does it mean for Chris, the senior product manager, whose team has been working for six weeks on a highly requested customer feature? What about Adam, the director of marketing, who is halfway through a co-branding campaign with a channel partner? What does it mean for Nikki, the new director of sales, who has been nurturing enterprise opportunities but is still a month or two away from filling her pipeline?
Natalieβs message seemed harmless at first glance. She asked one of her team leads about a major quarterly goal. But in reality, sheβs caused a wave of uncertainty throughout her company. Her lack of clarity raised more questions than her team could possibly answer.
Being a startup founder is a stressful and lonely job. When the pressure is on, we tend to βact now and think later,β a survival instinct that keeps us safe from snakes β¦ only to run straight into a den of lions.
In times of high pressure and uncertainty, one leadership trait is more valuable than any other: clarity.
Clear communication is the knife that cuts through chaos, giving you and your team a direction and a plan. It focuses your limited resources like a laser aimed at the single most important thing. Clarity brings sanity back to insane situations.