“You Can Count Them on One Hand!”

Honesty is something you can’t wear out. –Waylon Jennings

I have worked at my fair share of startup companies in the past, with varying degrees of success!  It is not for the faint of heart, as each day can toggle between enormous satisfaction and bone-crushing despair.  If you survive the adrenaline and the uncertainty, the good days typically outweigh the bad days.  But regardless of the daily challenges, there was typically one concrete question each company had to address.  How do you gain credibility and grow the customer base?

Early in my career, I worked for a company with only two paying customers, both of whom signed up based on relationships with the board.  During our sales pitches, we were told to be vague when describing our customer “base”.  Typically, we used words such as “a handful”, “several”, or “plenty”.

During one such prospect presentation, the discussion flowed effortlessly.  I had developed a great rapport along the way, and I was certain each side had built up credibility and trust.  Toward the end, I opened it up to questions, and the gregarious, larger-than-life CEO jumped right in.

“Fascinating technology.  I’m curious, how many customers do you have?”

I reflexively relied on my training and did not hesitate.

“Oh, we have a handful of paying customers.”

The CEO wrinkled his brow.

“Could you be a little more specific?”

Hmm.  No one had pressed me on his before.  I stammered, a little less confident than the time before.

“Um, I guess I mean, you can count them on one hand.” 

The room audibly gasped.  Was I missing something?

The CEO smiled and slowly raised his hand.

“Oh yeah? Could you count your customers on THIS hand?”

I slowly lifted my gaze to his outstretched hand and (gulp!) THE DUDE HAD ONLY THREE FINGERS!

Time stood still.  Sweat poured down my forehead. I was literally speechless.  But instead of embarrassing me for no reason, the CEO turned it into a teaching moment.

“We really like your product and we like you.  Just be honest and transparent with your answers.  That’s all we ask.”

It was great advice to receive early in my career.  And it is great advice for all of us as we navigate our personal and professional lives.

Face the Music

We will be on the receiving end of a lot of tough questions over the course of our lives.  As entrepreneurs, we will be grilled by the Board or the public markets.  As salespeople, we will be under scrutiny from the customer.  As employees, we will be questioned by upper management.  As teachers, we will be challenged by our students.  As parents, we will face tough questions from our skeptical children.  People will be expecting an honest answer.  How will we respond?

It’s not as simple as it sounds.  We may not want to hurt any feelings.  We may not want to reveal a weakness.  We may not want to open up an uncomfortable discussion.  Obfuscation may trump transparency under the white-hot spotlight.  But we have to stay true.  People deserve direct answers, even if those answers reflect poorly on us or the other person.   Anything swept under the rug will eventually be discovered.  Anything avoided in the moment will be revealed down the line.  And delaying the inevitable will only exacerbate the situation and create trust issues.  Facing the music with grace and sincerity is the only viable option.

Answer the Tough Questions

We will have to step out of our comfort zone.  We will have to admit a weakness or failure.  We will have to point out inconsistencies that will create controversy.  But that is okay.  Reasonable people do not expect perfection.  They know there will be shortcomings and flaws in any plan, any presentation, any theory, or any approach.  But they want to know they will be in good hands if something goes wrong.  And they want to know that the person on the other side will move mountains to address their concerns.

Of course, we want to avoid brutal honesty.  There is no reason to go out of our way to embarrass or point out the shortcomings of ourselves or others.  But we must be prepared to answer the tough questions head-on.  We must be prepared for the consequences of honesty and authenticity.  We must be prepared to sometimes walk the tightrope without a safety net.

It won’t be easy.  But the long-term gain will far outweigh any short-term pain.  And the benefits and rewards of transparency will be far too many to count on one hand.