Michael “Schatzy” Schatzberg is the Co-Founder of Branded Hospitality Ventures.
Are you looking to invest in a hospitality tech startup? Investing in a hospitality tech startup can be like hitting the jackpot at a Vegas slot machine—minus the flashy lights and blaring sounds. It’s an attractive prospect to investors because it’s not just about throwing money at a business; it’s about placing your bets on the right people and innovative ideas. Investing in a hospitality technology upstart is an appealing prospect for investors looking for high growth potential and innovation in the industry. The success of any business rests on the shoulders of its CEO. For your investment to pay off, looking for certain qualities in the CEO of an up-and-coming hospitality tech startup that can guarantee success is essential. From their experience in the industry to their ability to think strategically and solve problems creatively, these five qualities in a hospitality tech startup CEO that investors should look for will ensure your investment is wise.
1. CEOs Who Are Thought Leaders And Operator Centric
What do you call a person with extensive knowledge and experience in the hospitality technology industry? A “hospitologist,” of course! Regarding hospitality technology CEOs, those who are operator centric and focus on building products that solve real-world operational issues can make all the difference in the industry. These leaders are focused on more than just creating flashy products to attract investors or users; instead, they approach technology from an operational standpoint. They understand the challenges the hospitality industry faces and work hard to create solutions that streamline processes and alleviate the pains associated with day-to-day operations. The results of this focus on functionality over flash are often revolutionary and can profoundly impact the industry as a whole. With confident and experienced operator-centric CEOs at the helm of hospitality technology companies, the possibilities for improvement are endless.
2. Vision And Strategic Thinking Ability
Have you ever tried to play a game of darts without actually looking at the dartboard? Trust me; it’s not easy. The same goes for having a vision without strategic thinking ability. It’s like trying to hit a bullseye while blindfolded—you might get lucky once in a while, but for the most part, it will lead to many misses and frustration. Sure, some great leaders utilize sheer instinct and act from the gut, but this is only part of being an influential visionary. Investors want to find a CEO who possesses a powerful vision and, more importantly, how they will get there. Investors want to avoid that person who keeps hitting the wall instead of the target. Unless, of course, his or her’s target IS the wall. In that case, carry on.
3. Leadership Skills
Leadership skills are no laughing matter, but that doesn’t mean we can’t have a little fun talking about them. Being a leader is like being a ringmaster at a circus. You have to keep track of all the different acts, make sure everything runs smoothly, and if something goes wrong, you’ve got to be ready to swoop in and save the day. But unlike a circus, you can’t rely on whips and top hats to get people to follow you. No, a true leader has to be charismatic, adaptable and able to inspire others to work toward a common goal. So, if you’re looking for a sharp leader, remember: They don’t have to be the ringleader of a traveling circus to be a great one—but it certainly couldn’t hurt.
4. Financial Acumen
Money doesn’t grow on trees, but with some financial acumen, a money-savvy CEO might be able to make it rain. Okay, maybe not rain, drizzle at best. But still, having a good understanding of their finances can make all the difference. Gone are the days of balancing the sheets by the seat of your pants; nowadays, watching the numbers and making wise financial decisions are paramount. With some financial know-how, a CEO can make money work for the company instead of the other way around. So, put down the avocado toast and start talking spreadsheets. Just kidding, I’m not that boring.
5. Adaptability And Resilience
The hospitality tech industry constantly changes, and start-ups will undoubtedly face unpredictable circumstances. Investors must look for CEOs who can adapt to rapid changes, think creatively and bounce back from setbacks. Adaptability and resilience are the two characteristics that I believe great CEOs embody. An effective leader must be like a rubber band.
Snapping back from any situation that comes their way. Of course, each CEO’s journey to becoming a resilient and adaptable person has sometimes been challenging sailing.
Most have had their fair share of faceplants, but it’s all about getting back up and trying again, right? A formidable leader could survive the apocalypse with nothing but a paperclip and some chewing gum. So bring on whatever challenges this crazy world wants to throw at them; they should be ready for it. (And maybe a snack, because let’s not get too crazy here.)
Conclusion
We’ve come to the end of our journey through the five qualities investors seek in a hospitality tech start-up CEO. And let me tell you; it’s been a real hootenanny. We’ve learned that a good CEO needs to be a champion operational problem solver, a master delegator, a visionary, a people person and have the grit and determination to see things through. But do you know what else a suitable CEO needs to possess? A sense of humor. Because if they can’t laugh when things go wrong (and let’s face it, things will go wrong), they’re in for a challenging ride. So to all you CEOs out there, keep laughing, hustling and most importantly, be the best CEO you can be. For the would-be investors looking for the next opportunity, I hope this article serves as a template or a cursory “litmus test” to guide you on your next endeavor. Cheers!
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