One piece of business advice I would give my younger self is to “learn how to ask the right questions”.
True mentorship is not about telling business owners what to do but asking pointed questions that help them think differently. So, rather than showering CEOs with advice, ask them probing questions instead. Questions that help them to reframe, rethink and reevaluate
In my experience, CEOs rarely lack ideas but often lack clarity. Asking them probing questions can clarify murky situations. And answering them truthfully can help leaders make quicker decisions and put them on the pathway to business growth.
Below are some examples of what transformational change a simple question can bring.
Clarity, not speed, is what builds great businesses
Knowing your company’s purpose and end goals is vital. Businesses must know why they exist, whether for legacy, wealth, impact or lifestyle. That “why” – often found when good questions are asked – should shape strategy. Without clarity of purpose, execution and planning can flounder.
As such, FOMO (fear of missing out) on opportunities can lead to rushed, poor business decisions that don’t align with the company’s purpose. People see an opportunity in the market and fear that the “window is closing” and, if they don’t act immediately, they’ll lose out. But rather than acting quickly, it’s more important to seek clarity first and ensure the opportunity is strategically aligned to your business plan.
Many business leaders become so immersed in minutia they lose sight of the big picture. So, when I’m working with companies in business growth programs, I ask them to think about why they’re doing what they’re doing, encouraging them to think deeper.
Questions create clarity
Good CEOs know they don’t have all the answers. They instead ask questions and seek feedback from customers, staff, peers, and mentors prior to decision-making.
Key initial questions to ask:
- What is your company good at?
- What sets your company apart from everyone else?
- And if they’re not sure, I ask: How can you compete in the marketplace without a point of differentiation or unique selling point?
Ultimately, if you don’t know why you’re in business, you’re not ready to grow your company.
Questions help you understand what your customer values
Many companies fail because entrepreneurs execute an idea that doesn’t resonate with their target customer. A good example is inventors who often experience a disparity between their product’s features and customers’ desires. While inventors fall in love with features, customers fall in love with outcomes.
Founders instead need to understand what the customer values about their product by asking the question: “What problem does my product solve?” Answering this critical question to better understand what the customer wants can prove the difference between struggle and scale.
For example, one of the most successful advertising campaigns in Australia was the Jeep campaign during the 2010s. The reason for the campaign’s success was that it wasn’t selling SUVs. In fact, it hardly even mentioned the vehicles. The message was that if you have a Jeep, you’ll have a fantastic lifestyle. It’s the same for CEOs: sell what customers value about the product, not the product itself.
Does the prospective customer want to buy?
Similarly, be careful not to confuse enthusiasm with evidence. If no one you’re “selling” to has ended up buying your product, you’re just being politely indulged.
When I was in venture capital, I had a founder approach us who claimed the State Government would buy his product. Before investing, with his permission, I contacted the government department in question and asked them if they’d buy his product? While they had high praise for the founder’s enthusiasm and knowledge, they gave an emphatic “no”. The problem was that he’d never asked them the, “Will you buy” question. So, he didn’t know that his ‘customer’ didn’t want the product, nor what would make it desirable to them.
Question everything and wait for the answers
Success comes not from having all the answers. But from knowing which questions to ask and waiting for honest answers before leaping forward. This discipline separates CEOs who ask questions to help build a valuable and enduring company from those who rush in without asking the right questions – and their idea then falls over.
Be brave enough to ask the right questions and you’ll create the solid foundations needed for business growth.
By Ann Angel, entrepreneur, investor and growth expert at the Australian Centre for Business Growth
This article was first published by Startup Daily