Leadership challenges vary depending on the size of the business. The nature of start-ups and SMEs, however, make them go more often through transformations, and much faster.

Let’s delve into the dynamic world of executive leadership within these companies to explore critical strategies for success, including fostering innovation, managing financial constraints, and cultivating talent, while also examining the hurdles CEOs must overcome to achieve sustainable growth and maintain a competitive edge in today’s rapidly evolving market.

What is a CEO’s mind like?

CEOs tend to do many things at the same time, as their role itself requires a multitasking mind. However, unless these skills are honed, they end up losing focus. To develop your organisation without losing this focus, particularly when diving into a routine or doing all things as a jack-of-all-trades, (for example, also overseeing HR, accounting, operations, business development and project management), you need to stop doing everything and stay resolute on what you do best, i.e. be the leader of the organisation.

Building your corporate culture around your leadership style

A leader needs to understand and acknowledge the difference between his A-players and B- or C-players. They all need to be managed differently. If you focus on the development of top performers only, which is usually only 10% of a workforce, you will have an ineffective team. If you keep developing B- and C- players, A-players will leave an organisation as there is no drive and development for them there. This, coupled with the fact that every person has a different personality e.g. proactive, reactive, submissive, assertive, aggressive, sublime, makes it more evident that senior leadership is more about people management than business management.

Aligning your team

It is critical to ensure your processes are geared towards a cohesive understanding of the business itself among your team members. While tasks come and go, the underlying deliverable should always be the growth and success of the business itself. Once this becomes second nature to the team, all processes become attuned to this deliverable. From regular catch-up sessions with leadership teams to revisiting the company’s vision and mission from time to time, it’s important to make sure this cohesiveness is communicated.

Balancing risk-taking and innovation with stability and consistency as a leader

Everyone has a different leadership style, thus, it is highly recommended to have a founders in a business or a founder plus executive team with varying expertise and performance styles. If your personality is that of a go-getter, it’s recommended to have an analytical person with you to balance that risk taking, outgoing approach and get 2nd opinion to vet ideas and strategies.

Developing future leaders

A business can only grow based on the growth trajectory of its people. Businesses that provide opportunities for their team to grow into leadership roles usually thrive as a sense of ownership is instilled in said team members. However, two things are critical for this to succeed: a healthy feedback and coaching environment where areas for improvement and development are identified.

It is important to remember that a business, especially, small businesses, must be accountable to itself first, then to its shareholders and customers. The effectiveness of leadership strategies should be measured by setting clear goals, tracking progress towards those goals, gathering feedback from team members and stakeholders, and assessing the impact of the strategies on the organization’s performance and culture. Without this, a business is just working on feelings and emotions of founders rather than actual results and impact.

Originally published by Arabian Business magazine.  

As one of the most expensive startup costs is payroll, founders often wonder if they should hire in-house, outsource, or rely on freelancers. Each approach comes with its own considerations, and the decision should be tailored based on individual business needs.

Planning: The First Step

Rushing into execution without adequate planning can be a pitfall. Some of the points you need to address are: have you outlined your business concept? Have you identified target markets, industries, and key decision-makers within those sectors?

Building Your Dream Team: Freelancers vs. In-house

Contrary to popular belief, your initial hires shouldn’t be the ones servicing clients. Your primary concern should be your business’s online visibility. Invest in a digital marketing and SEO specialist, as they will help with high website ranking in search engines and generate leads that are crucial to fueling your business. When considering a remote team versus local hiring, always factor in the nature of the role. Positions like tech and digital marketing may not require local expertise and could be outsourced to save costs without compromising quality. Your client servicing team, of course, should be based locally.

Freelancers

Pros:

• Specialist Expertise: Freelancers often possess niche skills honed over multiple projects.
• Cost Efficiency: Engaging freelancers can be more cost-effective than full-time hires.
• Contract Flexibility: Projects can be short-term, long-term, or on a per-project basis, offering flexibility.

Cons:

• Time-Consuming Activity: A lot of time goes into proper briefing, while the timeline for the delivery of results can often be dictated by a freelancer.
• Management: Coordinating with multiple freelancers can be administratively heavy, and it can be very difficult to form an effective team with them.
• Control: Freelancers may become preoccupied with other projects, making it hard to ensure the prioritization of your project unless you offer a higher rate.

In-house Roles

Pros:

• Dedicated Focus: Full-time employees are fully aligned with the company’s mission and objectives.
• Direct Communication Channels: Immediate feedback and seamless communication streamline processes.
• IP Control: With an in-house team, you can be less concerned about information leakage. Ownership of materials produced also resides with your brand.
• Cultural Integration: Corporate employees breathe the company culture, ideally ensuring greater loyalty.

Cons:

• Cost Considerations: Salaries, visas, benefits, and overheads can strain budgets.
• Scalability Challenge: New projects can require extensive hiring; however, upon their completion, the need for such extensive overhead may diminish, making it challenging to let people go.
• Skill-set Limitations: The team’s expertise is bound by its existing members unless new specialists are onboarded.

When to Consider an Agency

Instead of investing in a team of specialists, consider an agency that provides a comprehensive suite of services. Local agencies can offer in-depth market knowledge and connections. Boutique-style teams often showcase a proactive approach and can often deliver results faster than in-house teams. Additionally, it’s worth considering the legal and tax implications of each hiring option.

Agencies

Pros:

• Diverse Expertise: An agency houses varied experts, offering a comprehensive solution.
• Driven by KPIs: Agency work is structured on a performance-based approach, which guarantees consistent results.
• Cost-effective: Onboarding of the whole team may cost less or same as onboarding of just one mid-level in-house manager.
• Press-office: PR team can replace the whole marketing/PR department.

Cons:

• Cost Implications: Top-tier or big in size agencies command premium prices.
• Potential for Generic Solutions: Choosing a less experienced PR partner might result in receiving generic solutions rather than tailored strategies.

In the intricate dance of building a business, there isn’t a one-size-fits-all approach. For startups, beginning with freelancers and gradually integrating in-house talent can be a balanced approach. To manage complex tasks without overburdening your company with numerous hires, lean on agencies’ expertise and speedy service delivery. A complex approach can help keep your business lean. This ensures that you remain focused on your primary roles as a leader.

Based on the piece published in Wamda.