Insights
Raising Capital

The importance of good leadership in a start up business

Not everyone is a born leader but all are born with the ability to learn the leadership skills necessary to become one.

Leading a start up business can be a very delicate balancing act. Don’t worry - nobody gets it right all the time.

It’s worth remembering that even successful business leaders often make mistakes. What do they do when this happens? They recognise the mistake, learn from it, and then move on, putting their new knowledge to work.

So, what qualities are associated with good leadership, do you have them, and how will they help you run your start up business?

1. First of all, you need a team to lead

As soon as you hire your first employee, you’ve started your leadership journey. During the early stages of your business, every single hire you make will have an impact on how the company operates, exists, and grows.

Putting the right team together is essential and choosing the people who are going to play a vital role in the success of your business requires that you have an eye for spotting the right talent.

2. A good sense of direction

Not only do you have to know where you’re heading and what you want to achieve with the business, you have to make sure everyone understands and believes in what you’re all working towards, as well.

If you all have different goals and objectives, you’re never going to reach them. It’s up to you to make sure that you’re all on the same page.

Join GrowthFunders and become a member

3. Be a good mentor

Although the people within your start up business will have been hired for a specific role, limited budget and resources at this early stage, will often mean that they’ll be called on to carry out other roles within the team. Therefore, it is up to you to guide your team as they hone the skills they already have and develop new ones. 

Giving constructive criticism and useful feedback is an imperative part of good leadership. Guide your team members towards perfection. Sometimes all they need is a second pair of eyes and your input on whether they’ve taken the right angle with their work.

Encouraging and praising your staff also falls under the mentorship banner. If someone produces a great piece of work, let them know about it! Alternatively, if you can feel the mood dipping for some reason, lift it by encouraging everyone to push towards their next achievement, both individually and as a group.

In order to be able to engage with your team in each of the ways listed above, it is necessary that you are able to communicate clearly and effectively with them.

4. Communicate clearly

If your team doesn’t understand what it is you want, there’s a pretty fair chance that they won’t be able to deliver, and that won’t be their fault.

Whether it’s content creators who require a written brief or a sales team who need to understand their targets, it’s up to you to ensure that you are communicating clearly and effectively and making sure that everyone knows exactly what both you and the business requires from them.

Perhaps most importantly of all, you need to:

5. Believe in yourself

Be confident in the decisions you make. Showing a lack of confidence (no matter how subtly), will cause your team to doubt that you know what you’re doing and subsequently they'll lose faith in your abilities to lead them.

You manage the business, so walk the walk and make sure it is operated in the best way possible in order to allow and encourage high growth.

Remember...

If you don't have a great team, there's nothing for you to be the lead - nowhere for you to exercise your amazing leadership skills - so take your time and make the right decisions.

Now you know how important the team is to your start up business and future success, the next step towards creating your high growth business will most likely involve raising capital. A changing market brings with it new opportunities and alternative finance solutions. What's the right approach for your business?

 Start to raise investment for your company today

Driving Growth.
Creating Value.
Delivering Impact.

Backed by

Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.