The Rollercoaster of Companies: Why They Often Go Down Before They Go Up
Business isn’t just a rollercoaster, it’s the wildest one in the park. The kind with stomach-lurching drops, unexpected loops, and the occasional moment where you wonder, “Why did I get on this ride in the first place?” For CEOs and investors, this ride can feel more like survival than fun, especially when things are barreling downhill faster than expected.
But here’s the thing about roller coasters: the drop isn’t the end. In fact, it’s often where the momentum for the climb begins, provided you know how to hold on, steer, and keep your lunch down.
When Trouble Hits
I was chatting with an investor recently, someone with 22+ years of experience and the kind of battle scars that only come from doing this work. He mentioned something fascinating: nearly every one of his most successful investments was, at one point, a total mess. Not the “oops, we missed projections” kind of mess, but the “oh no, we’re on fire, and nobody brought water” kind of mess.
Some of these companies had been stars pre-COVID: solid businesses with great teams and big potential. Then the pandemic hit, and suddenly, they were in survival mode. Revenues tanked, teams fractured, and the board meetings? Let’s just say they were less “strategic planning” and more “emergency triage.”
Yet many of these companies made it through. Not just made it, but came out stronger on the other side. How? They didn’t give up on the ride. They brought in the right kind of support, someone who’d seen this movie before and knew how to rewrite the ending.
Boards, CEOs, and the Perfect Storm
Here’s where things get tricky. When a company hits turbulence, boards often look for quick fixes. And while many board members are brilliant, with finance degrees from top schools, and impressive resumes, they’re not always equipped to deal with operational chaos.
It’s like hiring a Michelin-starred chef to fix your kitchen plumbing. Sure, they know food, but what you really need is someone with a wrench and a solid understanding of pipes. Without that, boards often panic:
- “Let’s replace the CEO.”
- “Maybe we should just write this off.”
- “What if we… restructure? That’s a thing, right?”
Meanwhile, the CEO is in their own storm. They’re overwhelmed, unsure what to do, and certainly not going to admit that to the board. Let’s be honest: A CEO saying, “I don’t know what I’m doing” in a board meeting is about as safe as yelling “fire” in a crowded theater.
So, problems get ignored, or worse, addressed with half-baked solutions. And too often, companies that could have been saved are left to flounder.
The Right Kind of Help
Here’s where a trusted advisor makes all the difference. Not a retired operator, who recently sold their company and now spends most of their time on the golf course and occasionally takes calls to “stay in the game.” No, you need someone who’s been in the trenches and spends their time helping leaders who are dealing with issues. Someone who knows what it’s like to:
- Sit in the CEO’s chair when everything feels like it’s falling apart.
- Look at a seemingly unsolvable problem and say, “Okay, here’s what we do first.”
- Facilitate hard conversations, prioritize the right issues, and actually fix them.
This is more than theory, it’s lived experience. The difference is night and day.
Think of it like this: when your car’s engine breaks down, do you want the person who read about repairs in a textbook or the one who’s rebuilt engines with their bare hands? Companies don’t need theory in a crisis; they need someone who’s navigated storms before and can stabilize the ship.
Why It Matters
For CEOs, having this kind of support is life-changing. Imagine having a safe space to admit challenges and work through them, not with someone who’s judging, but with someone who’s guiding. For investors, it’s the difference between writing off a company and watching it thrive again.
The truth is, the downward plunge is often just a phase. With the right insight, stabilization, and strategy, companies can climb higher than before. But it takes a skill set beyond PowerPoints and polished resumes. It takes someone who knows how to coach, advise, and actually get things done.
The Climb Back Up
So, if you’re watching your company struggle, or if you’re an investor seeing one of your portfolio companies in freefall, don’t panic. Don’t give up. And for goodness’ sake, don’t just bring in a retired consultant looking to feel useful again.
Instead, find someone who knows the ride. Someone who’s been through the highs, the lows, and all the stomach-lurching twists in between. Because when the right advisor steps in, that downward spiral? It’s just the momentum you need for the climb ahead.
Ready to talk to someone who’s been there, done that, and still shows up for the ride? Let’s chat. The climb starts here.
