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 OK - for those regular readers of the G-B-U feature, as promised here is a "G" story. Actually, it's two stories rolled into one. Most of the time, the entrepreneurs we back act responsibly, ethically, and professionally. So, it can be hard to decide where to draw the line, since there are too many "Good" stories to tell.
But, over the last six to nine months we've seen two CEOs do something very similar that strikes us as exceptionally "Good." In both cases, she and he (one of each gender) came off a very successful quarter - yes, even in these turbulent times. Both came to their respective Board meetings with the happy news that the company had grown nicely and had finally achieved that wonder of wonders - cash-flow breakeven!
So, what did they ask the Board for at that moment of happiness around the table? More stock options? Bigger bonuses? Perhaps a relaxation of the expense plan so they could hire more employees?
No! They both asked permission to cut expenses below the currently approved plan.
"What?", you say! Cut spending as things are looking good?
Both these CEOs were alert enough, and knew their businesses well enough, to be looking past the immediate good news to see their sales funnels contracting, their sales cycles extending, with the knowledge that new equity in these times would be very expensive. In addition, they both got a taste of what it means to control their own destiny (which you do at cash-flow break-even or better) and they weren't about to give that up without a fight.
Just as importantly, they got out ahead of events, ahead of their respective Boards, and ahead of the power curve. That's what seasoned executives do. Oh, and on that note, they are both first-time CEOs. Their lack of "CEO experience" didn't stop them from demonstrating superb executive instincts. Good on ya', both!
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