In this episode of Play Big Faster, we welcome Jim Schleckser, founder and CEO of The Lazy CEO Project, author of “Great CEOs Are Lazy,” and podcast host. Jim shares his insights on how truly effective CEOs work smarter by identifying and addressing the key constraints in their businesses. From finding the “kink in the hose” to the cardinal rule of cash management, this episode is packed with practical wisdom for entrepreneurs at every stage.
The “Lazy CEO” Concept
Jim opens the conversation by clarifying what he means by “lazy” CEOs. Contrary to what the term might suggest, great CEOs aren’t actually lazy – they’re strategic about their time. They focus intensely on what truly matters while delegating, deferring, or eliminating everything else. These executives manage to work normal human hours yet achieve extraordinary results because they concentrate their efforts on the critical constraints in their business.
Finding the “Kink in the Hose”
The core of Jim’s philosophy revolves around identifying what he calls the “kink in the hose” – the primary constraint holding your business back from growth. If you had a garden hose with a kink, you could work anywhere on that hose, but the only work that would actually get water flowing is addressing that specific kink. Similarly, in business, you need to find the constraint point that’s preventing progress.
According to Jim, this constraint exists in only one of three places:
First, it might be in your business model – what Jim calls “wearing the Architect hat.” This involves what you do, for whom, and how you charge.
Second, it could be in your people – “wearing the Coach hat.” This means ensuring you have the right team members headed in the right direction, coaching them up, and sometimes making the difficult decision to move them off the bus.
Third, the constraint might be in your processes and systems – “wearing the Engineer hat.” As businesses grow, the approaches that worked at earlier stages often become insufficient, requiring evolution of operational systems.
From Solopreneur to CEO
For entrepreneurs making the transition from solopreneur to CEO, Jim emphasizes the importance of documentation. You must take what’s in your brain and create systems that allow others to replicate your work. Without teachable systems, your business can never scale beyond your personal capacity.
When it comes to first hires, Jim recommends focusing on either revenue generators (salespeople) or value creators (those who deliver your product or service). These initial team members help you extend your reach and begin building a company that can operate beyond just you.
Jim also makes a compelling case for fractional employees, especially in the early stages. He points out that we already use fractionals in many areas (like accounting services) and explains how a highly skilled fractional executive working 20 hours a month will often outperform a less experienced full-time employee because they’re incredibly efficient with their time.
Common Founder Mistakes
During our conversation, Jim outlines several crucial mistakes that early founders often make.
The first is believing your own hype – thinking you’re “all that in a bag of chips.” Jim stresses the importance of having people around you who will tell you the honest truth, even when it means hearing that your “baby is ugly.”
Another common mistake is the struggle to delegate your strengths. As founders, we all bring certain gifts to our businesses, but as we grow, we must bring in people to handle even the areas where we excel. This is particularly challenging but essential for growth.
The third major pitfall is what Jim calls being an “info-maniac” – needing to be involved in every detail and decision. This mindset creates a bottleneck where the leader becomes the constraint in the business, ultimately limiting how much the company can grow.
The Cash Management Cardinal Rule
When asked about advice for first-time entrepreneurs, Jim doesn’t mince words. His cardinal rule, repeated three times for emphasis: “Don’t run out of cash.”
He explains that 90% of small businesses fail within the first five years because they run out of cash. While many entrepreneurs focus on the P&L statement, Jim insists that cash flow is the true survival metric for early businesses. As he puts it, “If you run out of cash, the music stops, the business is over.” But with adequate cash reserves, any problem becomes solvable given enough time.
For optimal cash reserves, Jim recommends having 2-3 months of expenses in the bank. He also notes that businesses with high margins, subscription models, and low capital requirements are generally in better cash positions.
The Secret to Playing Big Faster
Toward the end of our conversation, Jim shares his “double top secret” advice for entrepreneurs looking to accelerate growth: find a “big brother or sister” partner in your industry.
He cites Microsoft’s early partnership with IBM as a prime example. As a small software company, Microsoft convinced IBM to put their software on every single PC, catapulting them to extraordinary growth they couldn’t have achieved alone.
The lesson is clear: finding the right strategic partner can take you places you could never reach on your own.
Resources and Connection
You can connect with Jim through his company website at TheCEOProject.com, through his podcast “The CEO Project Podcast,” or by purchasing his book “Great CEOs Are Lazy” on Amazon.
Special Offer for this Community
Get a free digital copy of the first chapter of “Great CEOs Are Lazy” by visiting: https://theceoproject.com/
Jim’s book “Great CEOs Are Lazy” has sold over 100,000 copies and delves deeper into these concepts. He generously offers listeners a free digital copy of the first chapter, which he designed to provide a solid understanding of the core concepts.
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