Reference no: EM133539845

Startup Leadership

Throughout history, various theories and methods of leadership styles have been studied. After all, not all leaders possess the same traits or qualities. Each individual has the potential to use their strengths uniquely. Leadership is not limited to personal ambition or growth. Instead, it is an excellent outlook on creating a team or organization that can continue to flourish even when we are no longer part of it. The varying data suggest no single type of leadership behavior to guarantee success. In different contexts, significantly as a startup evolves and grows, leaders need to utilize various techniques that will lead to further success. While transformational leadership significantly predicts positive startup performance, transactional leadership can also reap similar benefits. Startup leaders must focus on being authentic as they adapt their behaviors to the respective situations and contexts and need to develop a variety of skills in addition to the essential competencies necessary for founding and running a business.

Understanding how to be an effective leader of a startup is an essential factor that plays into its ability to increase human capital, survive hardships, and improve overall performance. However, only a few venturers actively engage in their leadership development, as many easily get lost focusing on the everyday operations.

Question 1:

Imagine you are in the role of the CEO and founder of a startup. For years your product has been marketed to and bought by customers in the 30-45 age group. Your head of market research comes in one day with a report stating that the product may be best suited for a younger demographic despite the excellent sales numbers. This would require excellent capital investment to realign ad spend, improve the product's features, and many other unforeseen investments. You are not on board with the decision, but your team reaches a consensus to go through with the idea. How would you handle this situation?

Question 2:

What form of leadership do you see as the best fit for this company? Would you opt for a transactional or transformational leadership style or another kind? Feel free to conduct research of your own and defend your decision.