By Fernando Berrocal

What makes the difference between startups that succeed and become success stories and those that (which are the most statistically) fail? Leadership is a crucial component that may create or fail a business. While having a strong team, a viable product, and a successful funding campaign are all important parts to obtain the goal, the day-to-day challenge of keeping the startup ship afloat comes down to leadership.

The stakes keep rising as your business expands and overcomes many obstacles. If you don't develop alongside your startup, you're limiting not only yourself, but also the business in which you've spent so much time, effort, and sweat. Here are some important areas where startup founders and cofounders should concentrate their efforts to improve their leadership abilities.

Never Cease Fundraising: You're probably all too acquainted with this talent. But keep in mind that it never ends. You can close your doors on the day you finish fundraising. If fundraising is a never-ending effort, you'll need to toughen up your approach. Fear of rejection, nervousness about returning to the same source for further money, freezing when making cold calls, and stuttering through elevator pitches are all situations that successful entrepreneurs must develop a strong hide to weather. When dealing with fundraising anxiety, face your worries head-on. Create an elevator pitch that is impenetrable. Prepare solid responses to investor questions in advance of any meetings or cold calls. Actively pursue leads by requesting introductions from your network, board members, and other investors to possibly interested investors. Remind yourself why you began this business and why it's worth investing in regularly so that your enthusiasm and devotion come through when you approach investors.

Know-How to Encourage your Staff: As your startup expands, you'll need to increase the benefits you provide to employees who have worked hard to make it a success. Recognized achievement is a powerful motivation. It matters a lot to sit down with each member of your team and congratulate them on the specific areas where they excelled. Employees will feel heard and that you care about their growth if you provide thoughtful comments and guidance. Consider providing additional benefits such as a paid vacation, a flexible work schedule, or another incentive that demonstrates your appreciation for their efforts. Invest in training programs regularly to develop abilities that will boost productivity and stimulate innovation.

Take Care of Oneself: This might be rephrased as "don't burn out." Burnout is an occupational danger because of the continual demands of running a business. Although it may appear that you must work around the clock, the fact is that no one benefits if you hit a wall and lose your drive and attention. Define work-life balance and lead by example to foster a business culture that appreciates it. Knowing how and to whom to assign responsibilities is a key component of leadership. Trust your team and delegate part of the job to them. If you require assistance, hire one. Make the most of the resources available to you to achieve a work-life balance. Delegate, take vacations, eat healthily, and get enough rest. You'll have the stamina you need to see a successful startup through the long haul if you do it this way.

Seek Out a Mentor: You most likely already have one or more mentors. Are they, however, capable of guiding you through this next stage of your business? Do they have relevant experience for where your business is right now? If that isn't the case, choose a new mentor who is knowledgeable about the terrain you're currently working with. A mentor can help you maintain your focus on the big picture and prevent mistakes by keeping you on track. If you need a new mentor but don't know who to approach, go out to investors and board members. These are the individuals who are the most up-to-date on your startup's current situation and may know someone who can help. Otherwise, you might post a message on LinkedIn or join up for a mentor matching service.

Organize a Meeting with your Legal Team: Congratulations if you've made it this far without getting into problems with the law. However, be mindful that the more money you make, the larger your staff, and the broader your scope, the more likely you are to inadvertently violate legal borders. Maintain frequent meetings with your legal team as your business expands to ensure that you're aware of all applicable laws and have strategies in place to deal with any legal hurdles that may arise.

In resume, as your business grows, you'll need to improve your leadership abilities as well. Developing a motivational administrator for your team, improving your fundraising skills, avoiding burnout and practicing self-care, finding a mentor appropriate for this stage of your startup's growth, and receiving legal tutoring will all help you sail through this stage to even greater growth and success.

Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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