The startup playbook has made pivoting from an initial product design or business plan a certainty. However, even when founders adapt their products to satisfy a newly identified need, they frequently fail to apply the same logic to themselves. While leadership skills come naturally to many folks, leading a startup is a whole different game.
Leading a Startup Is a Whole Different Game
It is often said that startups respond well to transformational leadership or leaders who are mission-driven and inspire others to follow them and their goals. Successful entrepreneurs are often transformational leaders. These leaders inspire their teams to be a part of something greater than themselves, or the purpose transcends self-interest.
Transformational leaders are often self-assured in their decision-making abilities while remaining realistic about their limitations.
Data demonstrates that venture funders replace 20 – 40% of their founders with more seasoned “professional” managers at important transition moments in a startup’s growth. A Business Development Manager who successfully assists the company in gaining an initial set of clients may not have the necessary skills to scale up sales as the organisation keeps growing.
As a startup, you’re often limited in terms of resources, thus it’s important to make the most of what you have, which often means providing support and guidance to employees. This can include mentorship, training, and leadership development programmes.
Providing support and guidance to employees, setting examples, and leading by example are essential for leadership in startups. It also includes encouraging risk-taking and innovation, promoting leadership growth, and maintaining open communication channels.
Leadership is important during every point in the business life cycle, however, during the startup phase, the quality of leadership will likely determine whether or not the business really takes off or fails.
As you ask yourself how you approach leadership alongside your business, keep these principles in mind:
Follow these leadership strategies to help your startup thrive.
- Establish a clear vision and mission.
- Foster a collaborative environment.
- Promote leadership growth.
- Encourage risk-taking and innovation.
- Provide support and guidance.
- Set an example yourself.
- Celebrate success together.
- Maintain open communication channels.
8 Leadership Strategies for Startups to Thrive
Establish a Clear Vision and Mission
Vision is having a clear idea of where you want to go, as well as why. Understanding why you’re going somewhere is central to having a sense of purpose. A clear vision and mission statement provides direction and focus for your startup and can help to inspire employees and customers alike. They should be simple, concise, and easily understood by everyone involved.
Foster a Collaborative Environment
Creating a collaborative environment helps to encourage creativity, teamwork, and productivity. In addition, employees feel more engaged and invested in their work when they’re part of a team.
Promote Leadership Growth
One of the most important things for any startup is leadership development. As your company grows, it will be essential to have leaders in place who can take on new challenges and drive the business forward.
Encourage Risk-Taking and Innovation
To succeed, startups need to be constantly innovating and taking risks. If you have a conservative corporate culture, this cannot be easy to do, but it’s crucial for growth and success.
Provide Support and Guidance
Great leaders make it clear that they welcome challenges, criticism, and opposing viewpoints. In any situation, demonstrating to the person you’re working with that you’re on the same team can go a long way. No team will be completely effective all of the time, and team members will have off days.
Spending time getting to know the individual members of your group and recognising any work or personal issues that may affect them at work will go a long way. Understanding your team will also allow you to identify their professional strengths and weaknesses and assign them appropriate team roles.
Set an Example Yourself
The core of any good leader is self-awareness. As a part of your job, you must look in the mirror and assess what skills are strengths, which areas do not come up as strong points; then work hard on improving them if needed! In startups where things change faster than ever before with new ideas coming from everyone all at once, it’s essential that leadership keep their heads held high—reconstitution needs to be quick but impactful decisions need time.
Celebrate Success Together
A big part of leadership is celebrating success together. When employees feel like they’re a part of something big, they’re more likely to be motivated and engaged. People want to be a part of something bigger than themselves, and great leaders give them that feeling.
Team members will only perform well if they are motivated and understand why they are doing what they are doing. Making the team want to succeed is a core skill of a great leader. In addition, celebrating small and large successes is a great way to show your employees that you appreciate their hard work.
Maintain Open Communication Channels
The final key to leadership in startups is maintaining open communication channels. The real work of leadership is communication. It’s a key component of how leaders achieve their objectives daily. As a successful leader, you must involve employees at all level of the organisation and ensure that they understand what is expected of them.
A competent communicator can convey a message and clear up any ambiguity. As a result, people will grasp what you’re saying and be ready to follow your lead. Communication is essential for building trust and creating a positive company culture.
There’s no question that leadership is important in any business, but it’s especially crucial in startups. After all, startups are all about taking risks and innovating, so you need a leader who can motivate and inspire others to think outside the box.
If you want to be a great leader, start by being a role model to your employees. Then, be passionate about your work and set an example for others to follow. Next, be relentless in your pursuit of success and always look for ways to improve. And finally, never give up on your team or yourself.
These eight leadership strategies can help transform your startup into a successful business. Are you ready to lead the change?