Scaling a startup is an exhilarating but chaotic process. The initial team, often a tight-knit group of high-performing individuals, suddenly finds itself expanding into a multi-layered organization. New management roles emerge, and existing employees, many of whom have never managed teams before, are promoted into leadership positions.

The problem? These newly appointed managers are expected to navigate complex leadership challenges with little to no formal training or support. It’s a trial-by-fire approach that can lead to burnout, poor decision-making, and high turnover—ultimately threatening the startup’s momentum.

The startup world moves fast. Founders focus on product development, securing funding, and scaling operations, often overlooking the critical need to invest in leadership development.

“Founders are promoting their very best people into the hardest roles,” says Michelle Cheng, Talent Director at Notion Capital. “More often than not, it’s not a job they’ve done before.”

Unlike established corporations with structured training programs, early-stage startups often lack the resources or budget to prioritize leadership development. The expectation is that managers will “figure it out” on the job—a dangerous assumption that can lead to inefficiencies and frustration.

The transition from an early-stage startup (a small, dynamic team of generalists) to a mid-sized business (a structured organization with defined leadership roles) is one of the most critical phases of growth. Employees who were once responsible for execution are now responsible for strategy and people management.

But leadership isn’t just about delegation—it requires emotional intelligence, decision-making skills, and the ability to navigate conflict. Without proper training and support, new managers may find themselves struggling with:

✅ Managing Former Peers – Shifting from colleague to leader can be uncomfortable, especially when giving feedback or making tough decisions.
✅ Balancing Leadership and Execution – Startups demand agility, but new managers often struggle to delegate, leading to burnout.
✅ Navigating Rapid Team Growth – As teams expand, communication becomes more complex, requiring structured processes and management techniques.
✅ Handling High Expectations – Investors, founders, and employees look to leadership for direction, placing immense pressure on inexperienced managers.

Without the right foundation, even the most talented employees can falter in leadership roles.

🚩 Burnout & High Turnover: When managers feel unsupported, their motivation declines, leading to disengagement or resignations.
🚩 Team Disruptions: Poor leadership can create misalignment, reduce productivity, and lower employee morale.
🚩 Scaling Challenges: Without strong leadership, startups struggle to maintain culture, communication, and operational efficiency.

This is the reality for many startup managers, thrown into the deep end with no life raft.

If startups want to scale successfully, they must recognize leadership development as a strategic investment, not a luxury. Here’s how they can support new managers effectively:

1. Implement Structured Leadership Training

Formal training shouldn’t be reserved for corporate giants. Startup-friendly leadership development programs—whether internal or external—can equip managers with essential skills like decision-making, conflict resolution, and team motivation.

Programs like our SLP™ provide early-stage managers with hands-on leadership training, peer coaching, and mentorship from experienced professionals. Similar initiatives can make a significant impact in startups looking to nurture in-house talent.

2. Prioritize Peer Learning & Mentorship

Leadership can feel isolating, especially in a fast-paced startup environment. Creating peer mentorship groups, where new managers can share challenges and insights, fosters a sense of community and accelerates learning.

Experienced leaders within the startup ecosystem should also take the time to mentor rising managers, offering guidance and real-world advice.

3. Foster a Feedback-Driven Culture

Startups thrive on agility and innovation, and that should extend to leadership development. Encouraging continuous feedback, both from peers and senior leaders, allows managers to refine their approach and adapt quickly.

This can include:
🔹 Regular 1:1 check-ins with founders or senior executives
🔹 Anonymous 360-degree feedback sessions
🔹 Open forums where managers can discuss challenges and solutions

4. Invest in Leadership Coaching

While startups may not have the resources for full-scale corporate training, they can leverage leadership coaching on an as-needed basis. External coaches or advisors can provide managers with personalized guidance, helping them develop the confidence and skills to lead effectively.

5. Recognize Leadership Development as a Long-Term Investment

Many startups hesitate to invest in training, fearing it will divert resources from product or growth. However, failing to develop leadership capabilities can cost far more in the long run—through lost talent, operational inefficiencies, and team disruptions.

A well-supported leadership team is not just an internal benefit—it’s a competitive advantage. Companies with strong leadership structures scale faster, retain top talent, and navigate challenges more effectively.

Scaling a startup isn’t just about increasing revenue or hiring more employees, it’s about building a sustainable leadership infrastructure. New managers need support, training, and mentorship to navigate their roles successfully.

The good news? Investing in leadership development doesn’t have to be costly or complicated. Simple initiatives, like peer coaching, structured feedback, and mentorship programs can significantly enhance leadership readiness.

At the end of the day, a startup is only as strong as its leaders. And the best investment any startup can make? Ensuring its managers have the tools to lead with confidence, clarity, and impact.