In our work with entrepreneurs, we describe the journey through second stage as having four distinct phases: being overwhelmed, building the team, developing systems and structure, and pursuing focused opportunities. These chapters are not necessarily linear, and entrepreneurs often reenter one or more as they continue to scale their business or begin new endeavors.
Probably the most repeated — and most uncomfortable — phase is feeling overwhelmed. For one thing, by the time they’re in second stage, entrepreneurs have achieved a pretty solid track record of success. They don’t expect to feel out of control, and they don’t like it. After all, one of the reasons for starting a business was to be in charge of their own destiny.
Yet even if their company is thriving, there are a variety of reasons why the entrepreneur may feel maxed out. For example:
Shifting economic system — The economic system (how revenue is generated) has become more complex and might be outgrowing systems and infrastructure created in earlier days. The company’s offerings and customer base have expanded, and pricing needs to be re-thought. Overhead may be rising, causing issues with cash flow.
Shifting social system — Adding more employees is a perennial source of stress. Especially in early second stage, entrepreneurs suddenly realize they have a “social system” to manage. Communications become more complicated and information-flow problems can create bottlenecks in the business. Employees may be promoted to managerial roles, even though they don’t have management experience.
Too much to do — Additional pressures come from an expanding list of tasks to complete and decisions to be made. Rather than delegating, second-stage leaders find themselves consumed by tactics with no time to think about strategy.
Too many ideas — Entrepreneurs are typically idea-generating machines. They can become frustrated (and frustrating to their teams) when they are not able to execute new ideas or keep track of them.
Getting out of the overwhelmed phase is not about working harder. Rather, it’s about leading differently. Here are some ideas to regain balance:
- Reevaluate economic and social systems. What processes, behaviors and culture does the business need to operate soundly? If an operating system is already in place, you may need to introduce an upgrade. You may not have enough people — or the right people.
- Redesign roles. We often see entrepreneurs wearing too many hats. Remember that you are the architect of your company. You can strengthen the leadership structure by reassigning workflow and empowering your team. What’s more, you can even redesign your own role.
- Slow down and redefine your priorities. Make a list of key objectives so you can focus on what matters most. Recognize that you don’t have enough time to execute all of your ideas and consider what makes sense for you and your team. A great idea might not be a great idea right now. Also, be clear whether you’re just brainstorming or want an idea to be executed right away. If talking to your team, they’re probably going to assume it’s the latter.
Remember, all entrepreneurs experience the overwhelmed phase. In early second stage, it’s a predictable transition as you move away from the survival mode and toward strategic thinking. Later on, it’s an indication that something has shifted and your current systems are no longer working.
Yet being overwhelmed is not a verdict or indication of failure. It’s simply a signal to slow down and make some course corrections. Recognizing the symptoms and pinpointing its causes is key to a quicker recovery. (Click here for a quick assessment.)