The new CEO is very smart
and had a good education but doesn’t have a clue about how to run a business. The
new investors replaced the founder in order to allow the business to grow. The founder
was bored by the day-to-day and had a new business idea.
We’ve been working in an
open plan co-working space, but the new CEO insisted we also get an office. He
also wanted to get a receptionist/bookkeeper. He commissioned an agency to look
at our logo and branding. This alone was going to cost $12K, which is more than
we had spent on anything so far.
What seemed like trivial
expenditure to him seemed like a fortune to the rest of us. He also wanted us
to do an 18-month rolling cash flow forecasting. None of us really knew how to
do this and it took a lot of time. He would call a meeting to review it and
this would take more time. None of us were sure what we suppose to learn from
He kept telling us these
were things we needed to do to grow. But we were only 18 months old, our cash
position was marginal, and we were barely coping with our day-to-day
No matter what we said,
the new CEO refused to engage in the daily operations. We needed help and all
we had was more things to do. It is OK to add new things, but surely we should
stop doing some other things.