Cultivating a CEO Mindset
Preview from Chapter 3 of The Creative Business Handbook by Ekaterina Popova and Alicia Puig
Cultivating a CEO Mindset
When you launch your business, it may seem uncomfortable or strange at first to call yourself a CEO or founder. Even though your business is brand new, we urge you not to shy away from the title. Regardless of the exact position you give yourself on paper, what’s most important is both embracing and stepping into your new role as the leader (and often also the face) of your company. It’s no secret that starting your own business is no easy feat, and with it comes a mountain of new responsibilities. In this chapter, we will outline the steps for breaking down any mental barriers you may have with regards to seeing yourself as a CEO, as well as other mindset challenges. You may not even realize you have these self-imposed barriers until you’re about to debut your business or are in the midst of growing your nascent company. For this reason, we want to address these potential struggles now. This way, you’ll feel ready to tackle any challenges that may arise and use your creative capabilities and other strengths to help your new business thrive.
Hint: Since you are running a creative business after all, there’s no need to call yourself a CEO if that title doesn’t fit with your vision or vibe. You can and absolutely should make up your own title that is a better match to your business. For the purposes of this chapter, however, we will use the term CEO, since it is the most frequently used.
In this chapter, we also want to give you an overview of the hurdles that may come up mentally, emotionally, and financially so you know you can handle them, even when it feels like the end. Both of us faced adversity while building our businesses, and we want you to know that no matter what happens, even if you make a mistake, you can recover from it. The biggest shift you can make today is to adopt a learning mindset to truly step into your leadership role going forward. When you make an agreement with yourself to observe emotions, situations, and failures with grace and curiosity you’ll quickly learn, recover, and use any situation to your advantage.
Experiencing Imposter Syndrome
There is a wealth of research on the many ways imposter syndrome creeps into our lives. According to the American Psychological Association, “First described by psychologists Suzanne Imes, PhD, and Pauline Rose Clance, PhD, in the 1970s, impostor phenomenon occurs among high achievers who are unable to internalize and accept their success. They often attribute their accomplishments to luck rather than to ability, and fear that others will eventually unmask them as a fraud.”
When Kat first started her magazine, she was so afraid of being called a fraud that she didn’t even include her name on the about page. After all, she didn’t have a degree or background in publishing or a fancy connection to the art world. Who was she to start a magazine? Even though she was driven by passion for the art community and committed to figuring things out, she didn’t even tell people about her project because she feared people would find her business illegitimate. Even as museum curators, galleries, and artists with more experience than her became interested in the platform, she hid behind the business for several years.
No one starts out an expert, and the more we practice confidence, celebrate our baby steps, and create the work we feel called to, the easier it will be to accept our identity as leaders, creators, and business owners without shame. Think of someone you admire—they didn’t start with a huge audience or recognition from their industry. They too had to show up and trust their vision, even before anyone approved of their work. Next time you doubt you are the right person to call yourself (insert your dream title here) ask yourself if you take actions based on this title, and if so, the answer is yes!
Kat learned another valuable lesson during a brief partnership that didn’t work out. She was working with someone who had no experience in the art world, yet, this person exuded such passion and confidence about running a magazine, no one questioned her credentials. She went on to build her own successful business and carve out her place in the industry simply by showing up and claiming her spot as a leader and founder. Kat’s ego had to take a back seat when she realized success has very little to do with experience, outside validation, or pedigree. We become successful by taking inspired action on our dreams and boldly embodying the person we are becoming. Next time you doubt you are the right person to build a successful business, claim it and proudly put your name on the about page. Remember these lessons and know that if a dream has been given to you, you are meant to experience it.
Whether fueled by the less-than-supportive comments of family or friends, a symptom of lack of confidence, or the pressures of societal expectations, it is not rare to at some point feel like you are doing more than what you are capable of, or that you aren’t qualified, experienced, knowledgeable, etc, “enough” to be running a business. We’ve both experienced this on numerous occasions and it’s hard to look beyond it, especially when you’re working to build your company alone. You can get lost in a downward spiral of negative self-talk that can derail you from your ultimate goal of building your dream business. If you ever find yourself in this position, there are a few key things you can do to combat it:
Stop and take a long, slow breath to refocus your mind on something else for a moment.
Did this unnecessary distraction subside or go away? If not, step away from your work for a bit to give yourself a break and a chance to recharge.
Reach out to a partner, parent, or pal who you know will give you a solid pep talk. This is just one of the benefits of having a supportive network.
Finally, try to remember that this business is your big idea and your passion—that fact in itself makes you the best person to be in charge.
Throughout Alicia’s career in the arts, she has fairly often been the only woman or person of color in the room. Even though she only faced overt discrimination on rare occasions, this has had an underlying effect of making her feel like an outsider. When she opened the gallery, self-doubt started creeping in. Who am I to run a business? Do I belong in this space? When you haven’t seen others like you doing what you want to do, it’s especially hard to imagine how you will succeed. During these periods of uncertainty and confusion, she relies on two things: the mission of supporting emerging artists and the unwavering support of a core group of family and friends.
As mentioned, imposter syndrome sometimes comes as a result of others' words and actions toward us. In this case, always remember that usually they’re just trying to be helpful, not hurtful. People think that by expressing their concerns, they will keep you from avoiding failure or embarrassment. Yet they don’t understand that the regret of never trying would haunt you far more than failing ever would. Ultimately, our advice in this situation is this: don’t let anyone else tell you what you’re capable of (unless, of course, it’s someone who is hyping you up and reminding you that you can achieve even bigger goals than you imagine!).
Struggles with imposter syndrome also happen as a result of comparison. Think back to Chapter 1 when we asked you to research your potential competitors. Did this process trigger any feelings of jealousy or unworthiness? Indeed, it can be frustrating to see others having already achieved the goals you want for yourself. When you’re in the initial phases of launching and running your business, however, this is the time to put blinders on and stay dedicated to your own path, especially if you find you’re susceptible to these feelings that distract you from your work.
Recognizing Fear for What It Is
The truth is, we will always experience a degree of fear. It’s part of the way our human brains protect us from danger. According to Smithsonian magazine, “Fear reaction starts in the brain and spreads through the body to make adjustments for the best defense, or flight reaction. The fear response starts in a region of the brain called the amygdala. This leads to bodily changes that prepare us to be more efficient in danger: The brain becomes hyperalert, pupils dilate, the bronchi dilate and breathing accelerates. Heart rate and blood pressure rise. Blood flow and stream of glucose to the skeletal muscles increase. Organs not vital in survival such as the gastrointestinal system slow down.”
When we face actual harm, it’s quite helpful to have this function—our body focuses on survival and shuts down or lowers most other functions. The problem is, most of the time in business, nothing is as threatening as the brain interprets it to be. This visceral fearful response may happen when you are about to share your products for the first time, do a live presentation, or pitch to an investor. When our brain focuses on survival, it becomes difficult to make truly informed decisions. We end up reacting impulsively, freezing, or hiding from the challenge in front of us. The key to moving forward and facing situations that arise with grace is to not let this primal response control our decisions. We must become observers of our emotions in both life and business.
Early on her journey, Kat froze whenever she faced a financial challenge, an uncomfortable confrontation, and even growth. Instead of buckling down, making sales calls, and taking action, she would go into full panic, unable to move forward. It’s taken her a long time to understand the body and mind connection and observe discomfort instead of running from it. We can achieve calm and release crippling fear through meditation, breathwork, prayer, mindfulness, and journaling.
We both had to find unique ways to nurture our mental health and create a strategy for dealing with fear and anxiety in our lives and business. For Kat, morning pages, meditation, and walking her dog helps her stay grounded and keep a distance from seemingly scary things. For Alicia, yoga, reading, and spending time with family have been key to thriving amid difficulty. When we step away from the problem, we can see it from a new vantage point and make better decisions.
In the beginning of starting your business, it’s common to fear failure, the unknown, and even massive success. When Kat first started earning money from her platform, she had no business experience and money management made her extremely nervous. She was afraid of charging customers money and that the IRS would come after her. When she sold a painting, she was terrified the client would dislike it and return it. Then came the fear of letting people down, not being able to host successful events, having launches that flop, and losing it all. We will never run out of things to be afraid of, but we all know that the magic, connection, success, and financial abundance is on the other side of these negative thoughts.
Eventually, Kat became too tired of feeling anxious and afraid, so she sought a solution and a new approach to running her business. After all, she had signed up for this path of being an entrepreneur to have more freedom and flexibility—not to anxiously bite her nails every second of the way. When we can observe our thoughts and emotions and understand that they may come from our families, society, and past conditioning, we are able to have more grace toward ourselves and make informed decisions rooted in facts rather than emotions. Our lives and businesses tend to be connected, so we encourage you to create a strategy for addressing your fears. This way, you can take care of your mental and physical health, no matter what’s going on, and keep building your dream. When uncomfortable emotions arise, learn to step away, observe them, and ask yourself, “Where is this coming from?”
Banishing Money Woes
Money is another important topic that has a key mental component. Whether you realize it or not, your attitude about money and how you think about it plays an integral role in how you run your business. Our thoughts about money are conditioned from a very young age, and it can negatively affect your company if the way you think about money is rooted in limiting beliefs.
Do you catch yourself saying anything along the lines of “there aren’t enough clients,” or “they won’t pay me enough”? Are these statements really true or are you allowing the fear of scarcity to cloud your judgment? Additionally, many have a bad habit of thinking of money as bad or evil when it is simply a resource. Remember that a financially successful business helps you provide for yourself and family, as well as support any causes you believe in.
While we do encourage you to continuously dream big and believe in your vision, many young entrepreneurs fall into the trap of thinking that starting a business means they will make money hand over fist right away. Throughout this book, we share strategic ways to keep costs low so you can start to profit sooner rather than later, but that doesn’t mean you can expect overnight success. What we want to help you do is build something that is financially stable and sustainable over time. Keep all this in mind as you work to lay the foundation of your business. Celebrate the small wins, but don’t get too frustrated if you don’t see exponential growth right away. Steady sales, or even small steps forward, are great accomplishments.
It is almost certain that you will go through slow seasons. The longer one of these periods lasts, the more likely you may be tempted to throw in the towel. This is why, as early as you can, we suggest you make predictions before you officially launch and compare your hypotheses to your actual results, track the timing of your sales, and look for peaks and valleys. Do your customers come to you steadily throughout each week, month, quarter, and year or is it periodically? The more you estimate this in advance and study the sales data in your early years, the easier it will be to not let slow periods derail your business or keep you from having a positive outlook on the growth of your company.
Finding Your Financial Flow
The biggest lesson we both learned about managing our finances aside from all the typical and practical advice you hear from business coaches is that there is a flow and energy to money. We mentioned fear earlier in this chapter, and the navigation of your finances will initially bring up old fears and conditioning. The trick is to lean into being a channel for money. Even when you spend or invest, you always have the ability to earn more because money is a renewable resource. One episode of Kathrin Zenkina’s Manifestation Babe podcast with guest Minister SharRon Jamison beautifully illustrated how our finances or material blessings are best looked at as a channel and not a reservoir.
Much like ocean waves flow in and out, it is the same in the way our finances operate in our business. When we grip too tightly or avoid investing in our growth, we create tension and begin to feel limited. But when we mindfully observe our spending, calculate our costs, and invest—trusting we will bring back even more—running a business becomes more expansive, rewarding, and even fun.
Of course, like with anything new, at the beginning it takes some time to find your footing and figure out which products are lucrative. Aside from practical bookkeeping and financial advice, we want you to know that you always can reach more people and bring in more cash. It may require you to try something new and think outside the box, but you are never stuck in any circumstance. The energy exchange between you and your clients is beyond numbers. As a business owner, we hope you experience sentimental and emotional value from the work you do. For example, even before Kat saw a dollar of profit from the magazine, the messages she received from artists, curators, and readers made her feel like she was contributing something valuable. While we encourage you to aim high in terms of your finances, it’s also important to get clear on your values so you can keep moving forward as you’re building your brand.
To turn a profit, we must observe our finances and our sales, and pay attention to what our clients respond to the most. One of the biggest mistakes small business owners make is investing too much or not trusting their products in the beginning. Early on, Kat didn’t fully believe in herself and ended up giving away products and services and agreeing to opportunities that became huge money drains. She was afraid that if she didn’t give away her own resources, she would lose the support of the people and organizations she admired and wouldn’t grow her business. After creating some very difficult financial situations for herself, including debt, she began to approach opportunities more mindfully, learning to say “no” when it wasn’t valuable to her community or profitable to her business.
There will always be opportunities, events, and partnerships that sound appealing, but we encourage you to pause, consider all financial decisions, and only agree to what feels right for you and won’t jeopardize your resources. Make sure you always have enough to continue operations, buy inventory, and pay your employees before you make any significant investments.
Speaking of debt, this may be a controversial topic, but we want to touch on it in case you find yourself in this situation where you took out a loan to launch your business, find yourself catching up with student loan payments, or had to borrow to keep yourself afloat. Though we both started our platforms without borrowing, when Kat lost her first business, she ended up using credit debt as leverage to rebuild her brand. It took several years to pay it off and at times it was scary and uncertain, but eventually Kat figured out her new business. Once she turned enough of a profit, she paid off her balances. It’s important to note that she already had a proven business plan that worked, and that her previous business failed due to creative differences between the partnership and not financial trouble.
We advise you to consult with a financial expert and, of course, think about any decisions to borrow thoroughly. Although none of us want to owe money, sometimes life, unexpected situations, and setbacks happen. If you must use debt to keep going, don’t be ashamed. You are not alone. In fact, large corporations heavily rely on debt and credit lines to help regulate cash flows. Having debt can add to your anxiety and limit your decisions, so whenever you can, use cash until you can borrow for a big upgrade, increasing inventory, or expanding operations. Even though we can’t offer legal financial advice, from our observation, the best use of responsible debt in our experience is a line of credit or working capital loan to invest in resources to help your business grow in the long run.
ACTION STEPS:
Identify any areas of resistance as they relate to your mindset about becoming a new CEO. Is there anything you’re feeling hesitant or insecure about?
What are you most fearful of when it comes to being a CEO? What is the fear rooted in or where does it stem from? What can you do to quiet or overcome this fear?
Reflect on your relationship with money in your personal life. How does talking about it and thinking about it make you feel? If your answer is overwhelmed or confused, how will you handle money with your business so you don’t feel this way?
How would you like to feel as a leader?
What would it feel like to achieve financial success in your life and business?
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