Over the past 10 years, and particularly through the bull market that lasted well into 2021, investors have chased the most promising startups and their founders. Among them was “John,” whose bravado, assuredness, and larger-than-life charisma were assets that spoke of his zeal and commitment. But now, in a sharply changing investment environment, these same personality traits have become a liability as investors ask him tough questions about performance and capital requirements for his business. Instead of engaging, John’s immediate response has been to shut down the conversation. “I’m not worried about getting funding,” he said, despite his latest pitch for additional capital being turned down a dozen times. “This isn’t my first startup. I’ve rung the bell three times before, and I will this time too.”
How Founders Self-Destruct Under Pressure
Many leaders’ coping mechanisms can seriously backfire.
September 09, 2022
Summary.
In this article, we examine three categories of detrimental behaviors that are becoming more common among entrepreneurs as they face mounting stresses over their funding and the health of their businesses. These behaviors are “moving against,” “moving away,” and “moving toward,” all of which are coping mechanisms that attempt to regain control through manipulation, deflect reality and harsh criticism through avoidance, or avoid pain and fear through ingratiation. We will also highlight how self-awareness, paired with professional and personal support, can stave off self-destructive behaviors and promote more positive interactions and, importantly, results.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Business Case Development. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Make your next business case more compelling.