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The 5 Levels of Leadership to be a Successful Startup Founder
By Renew Capital Marketing and Communications Team | Wed Nov 20 2024
Source: Vantage Circle
Leadership is essential for success in any business but it is especially crucial for early-stage startup founders in Africa. Whether you're in the initial stages of launching your startup or you've already started scaling, John Maxwell’s 5 Levels of Leadership offers a solid foundation for becoming a more effective leader.
However, how can this leadership model be applied to the daily challenges and opportunities you face as an African startup founder?
In this blog, we’ll explore how these leadership levels can be applied to your leadership journey as a growth-oriented founder, helping you build a high-performing team and scale your startup.
Level 1: Position – Establishing Your Leadership Role
What this level means in the Maxwell model: At this stage, your team follows you because they have to. Your role gives you authority.
For Startup Founders: As an early-stage founder, you might be the face of the business but leadership goes beyond your title. The startup ecosystem is always evolving and your leadership position will only be effective if you learn how to lead a team.
In the early stages of a startup, you’ll face unpredictability, limited resources and constant changing of market dynamics. These challenges will test your leadership and require you to adapt quickly.
Actionable Steps for Startup Founders:
- Lead by example: Be the role model you want your team to follow. Set the tone for work ethic, communication and integrity. Your actions will speak louder than words.
- Clarify your vision and communicate it frequently: The mission and vision should be clearly communicated through onboarding materials, team meetings and internal communications within the company's culture and operating principles. Consistently integrating them into daily practices ensures alignment and keeps everyone focused on shared goals.
- Set clear expectations with your team: As a leader, define team goals, roles and measurable outcomes, while providing regular feedback and encouraging open communication to ensure everyone understands their responsibilities and aligns with the overall vision.
At the start of your leadership journey, it's all about mastering the basics. This stage is essential because it sets the groundwork for everything that follows. You need to get comfortable with core leadership skills like setting expectations, managing time effectively and making decisions confidently. It’s all part of the learning curve that will prepare you to lead with clarity and purpose as your startup grows.
Level 2: Permission – Building Relationships with Your Team
What this level means in the Maxwell model: People follow you because they want to, not just because they have to. Trust and relationships are key.
Source: Achievers
For Startup Founders: As a founder of an early-stage startup, building trust and relationships with your team members is important. Your team starts following you not because they have to but because they want to. Connect with them, understand their needs and show them that you care beyond just the business.
However, this level isn’t just about being liked, it’s about being genuine. Listening to people, understanding their challenges and finding ways to support them makes you more than just a leader with a title.
Actionable Steps for Startup Founders:
- Host regular one-on-one check-ins with your team members: Whether remote or in-person, spend time getting to know your team. Ask about their career goals, challenges and how you can support them. This shows that you care about more than just the work and makes them feel like they are an essential part of your journey. Ask them what’s working, what’s not and how you can help. You’ll be amazed at how much stronger your relationships can become by simply showing you care.
Level 3: Production – Delivering Results with Your Team
What this level means in the Maxwell model: At this stage, you’re moving beyond just leading and managing. Your team follows you because you’re proving you can get results.
For Startup Founders: As your startup grows, results are key for keeping the momentum going. Your ability to execute your ideas will be what sets your business apart from others.
For early-stage startup founders, this is the level where you make real progress. You’re no longer just talking about your idea, you’re executing it. Whether it’s landing your first customers, hitting your first revenue milestone or securing investment, your leadership at this stage is driven by results.
Actionable Steps for Startup Founders:
- Set clear KPIs and share results: Whether it’s increasing user acquisition, product development milestones or securing funding, measure and communicate your progress regularly. This will help you demonstrate the importance of results to your team.
- Celebrate team wins: In the early stages of a startup, every win, no matter how small, counts. Celebrate these milestones to boost morale and reinforce that everyone plays an important role in your startup's success.
As you grow as a leader, understanding What Early-Stage Investors Look For in founders or startups before investing will help you shape your leadership strategy and approach.
Level 4: People Development – Empowering Your Team to Lead
What this level means in the Maxwell model: You develop other leaders who can take the business forward. You move from being the “doer” to the “developer”, guiding others to step into leadership roles.
Source: Canva
For Startup Founders: As a founder, it’s no longer just about you. If your startup is going to scale and succeed in the long run, you need to invest in your team’s growth.
The future of your business depends on how well you develop your current team, helping them grow into larger roles and take on more responsibility. By empowering team members to lead projects, you not only create new leaders but also open the door for them to explore opportunities and innovative ways to drive your startup’s growth.
Actionable Steps for Startup Founders:
- Create growth opportunities for your team: Offer mentorship, training and leadership programs and give them the tools they need to take ownership of projects and responsibilities.
- Delegate and trust your team: Don’t hold onto all the decisions yourself. Give your team autonomy in their roles and provide them with the tools and resources to succeed. Also, encourage them to grow their skills and be patient as they learn.
For example, at Renew Venture Lab (RVL), Renew Capital provides mentorship for startups, helping founders become effective leaders who can inspire their teams.
We guide founders through a comprehensive training program that equips them with the skills to scale their business, improve themselves and develop their teams for long-term success.
Level 5: Pinnacle – Leaving a Leadership Legacy
What this level means in the Maxwell model: People follow you because of who you are and what you represent. You leave a legacy of leadership that will continue even after you’ve moved on.
For Startup Founders: Legacy is important for African entrepreneurs looking to leave a lasting impact. This isn’t just about growing your company, it’s about making an impact that lasts beyond your business. As a Pinnacle leader, your influence extends beyond your company. You’ve built something meaningful and now your leadership is inspiring others across the startup ecosystem.
Whether that’s by mentoring other entrepreneurs, speaking at industry events or creating a network that supports innovation in Africa, your legacy is defined by how you help others grow.
Actionable Steps for Startup Founders:
- Mentor the next generation of entrepreneurs: One of the best ways to leave a legacy is by helping others rise. Share your knowledge and experiences with other startup founders and become a mentor in the African startup ecosystem.
- Advocate for systemic change: As you grow, use your position to advocate for policies and initiatives that will benefit the broader startup ecosystem in Africa. Whether it’s pushing for better access to funding for women-led startups or improving educational opportunities for future entrepreneurs, your leadership can shape the future.
The journey from an early-stage startup founder to an exceptional leader isn’t easy, it’s an ongoing process of growth and learning. However, it’s rewarding.
Along the way, you’ll face challenges, setbacks and moments of self-doubt. But remember, leadership is a journey, not a destination. John Maxwell’s 5 Levels of Leadership offers a framework that can help guide your leadership journey to achieve success in your startup and make a meaningful impact on the broader entrepreneurial ecosystem.
Start by clarifying your vision, building meaningful relationships with your team and delivering results to leave a legacy you’re proud of. Be a leader who can mold ideas into impactful and scalable businesses.
By understanding where you are in your leadership journey and focusing on growing both yourself and your team, you can build something beyond a successful business, a legacy that will shape the future of Africa’s startup ecosystem.
Are you a growth-oriented founder of a tech-enabled startup in Africa?
Apply now to join the Renew Venture Lab and gain access to our experienced investment team, valuable training and a global network of partners and investors ready to help you secure your first round of capital!
Disclaimer
This blog should not be viewed as investment advice or as a solicitation of an offer to buy or sell securities or to adopt any particular investment strategy. Impact investing and investing in frontier markets specifically, is speculative in nature and involves a high degree of risk. The Renew Capital Angels invest in companies located and doing business in sub-Saharan Africa. Investors should understand and be willing and able to handle the risks of investing in such frontier markets, which are more significant than the risks associated with investing in securities of U.S. companies or in other developed countries. Risks include the risk of total loss of an investor’s entire investment. Investors should fully understand all risks and consult with their independent financial, legal and tax advisors to determine whether any particular investment or investment strategy is appropriate for them. Renew Capital does not make any recommendation regarding the appropriateness of any specific investment opportunity for any specific investor.
Renew Capital is an Africa-focused impact investment firm that backs innovative companies with high-growth potential. Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations and family offices who seek financial returns and sustainable social impact. For the latest on investing in Africa, subscribe and follow us at our social links below.
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