Effective leadership: transitioning from solopreneur to team leader

Many small businesses are started by ‘solopreneurs’ – self-employed business owners who work without the help of employees or a co-founder.

Whether you have set up your start-up as a sole trader or limited company, you may need to expand your business and hire employees.

Bringing on employees to handle specific tasks can give you more time to focus on growing your business.

However, transitioning from solopreneur to team leader can be challenging and involves much more than simply assigning tasks.

Read on to learn about effective leadership and how to successfully go from working solo to leading a team.

How to go from solopreneur to effective team leader

Develop your leadership skills

Leadership skills could be key for any start-up owner.

However, not everyone is a born leader, and you may not have managed employees before.

So, transitioning from working independently to leading a team can require a shift in mindset.

You might need to hone your existing skills and focus more on collaboration rather than your own contribution.

Key leadership skills you might wish to develop include:

• confident decision-making – to make informed choices
• clear communication – to effectively convey your ideas
• organisational skills – to manage tasks effectively
• empathy – to help understand your employees’ perspectives
• adaptability – to adjust smoothly to change.

You could develop skills over time as you manage your team.

Asking for feedback from your team could help you tailor and develop your approach to leadership.

Consider taking online courses or attending workshops.

Try Learn with Start Up Loans and look at our courses on succeeding in the workplace and leadership and followership.

Hire wisely

Hiring staff can be an exciting milestone for your start-up.

It may require careful planning to employ the right people, at the right time.

Start by considering why you need to hire somebody and what tasks they will perform.

For example, do you need an individual with a specific skill set or more of a generalist who can support with admin?

Consider how much work there is and whether the role should be full-time or part-time.

When calculating the cost of employees, don’t forget to consider National Insurance, pension contributions, and National Minimum Wage requirements.

You may need to balance staff expectations with your budget, as you might not be able to offer the same benefits or salary as a larger business.

However, consider what else could be attractive to potential new hires.

For example, you might offer an extra day off for birthdays, remote working, summer hours, or additional training.

Creating a comprehensive hiring process could help you understand an applicant’s character and skills.

Hiring stages may include an initial face-to-face interview, a task to assess their skills, and a final, more in-depth meeting.

Read our first-time employer’s guide to hiring staff.

Learn to delegate

After handling everything in your small business yourself, you may find it challenging to delegate certain tasks to others.

However, learning to delegate is crucial for any small business owner who wants to grow their team.

To delegate successfully, you may shift from a control mindset to one of empowerment.

Here’s how you could do this:

1. identify tasks to delegate – you could begin by assessing your workload to decide which tasks can be passed to others
2. choose the right person – you may wish to match tasks with team members’ strengths and interests. Consider their experience and career goals, checking that they have the capacity and resources they need
3. set clear goals and expectations – you might outline what needs to be done and how, provide any necessary information about the task, and be open to new ideas on how to complete the task
4. monitor progress – consider regular check-ins to provide guidance and support. Use these meetings to address challenges and adjust plans if needed
5. celebrate successes – recognise and celebrate achievements and milestones to boost morale.
   Effectively supporting your team and acknowledging good work could result in low staff turnover and increased productivity.

Also, consider providing employees with ongoing training and setting clear pathways for promotion.

Create a positive company culture

A strong, positive company culture could help your team – and your business – thrive.

It could shape employee behaviour, influence decision-making, and drive long-term success.

At its core, culture encompasses shared company values, a mission, and a vision that gives everyone a sense of purpose.

Think about your company values – the core principles that define your start-up’s identity – and how they shape your culture.

These could be single words such as ‘collaboration’ and ‘transparency’, or phrases like ‘we strive for innovation’.

For example, a company culture rooted in collaboration could encourage open communication among employees.

Leadership is key to company culture, so consider leading by example.

By demonstrating the organisation’s values, you could set the tone for your team.

Try these ideas for creating a positive company culture:

• create shared goals – working towards common objectives could promote teamwork
• hold regular meetings – you could schedule weekly team meetings to review progress, share ideas, and keep everyone aligned
• use collaborative platforms – tools like Slack or Asana could make it easier for your team to communicate.

Read more about how to motivate your employees.

Encourage good team communication

Effective team communication can be crucial for collaboration, productivity, and morale in a small business.

Here are some simple ways to support a team with diverse personalities:

Regular team meetings

Regular weekly or monthly meetings can keep your team on the same page.

Direct the conversation to relevant topics and encourage open discussion.

You can use these meetings to set goals, track progress, discuss challenges, or address team-wide issues.

1-2-1 meetings

1-2-1 meetings provide both you and your employees with the opportunity to talk privately.

You could use these meetings to provide feedback, discuss professional development, or address specific concerns.

These sessions help you understand your team members, encouraging trust and engagement.

Conflict resolution

Different ideas and approaches can sometimes cause conflicts in a team.

Resolving issues quickly can help maintain productivity and keep team spirits up.

You may need to mediate or encourage open conversation if personality clashes arise.

Promote a ‘learning’ culture instead of a ‘blame’ one, and create an environment where differences are valued.

Team-building activities can also help build camaraderie and understanding.

Using a mixture of communication methods might also be beneficial – emails may help employees remember information, while quick meetings could work better for immediate feedback.

Develop your leadership skills with Learn With Start Up Loans – consider our course on effective communication in the workplace.

Foster a growth mindset

Think about how you could encourage your team to help grow your start-up.

• encourage initiative – encourage employees to propose new ideas, encouraging a culture of innovation
• build trust – you could empower team members by delegating responsibilities to them, promoting a sense of ownership
• promote collaboration – create opportunities for teamwork on projects to establish shared goals
• model resilience – showing resilience yourself could encourage employees to adapt and learn from challenges
• celebrate efforts – recognise and reward success and effort to help motivate your team
• provide learning opportunities – offer training and resources for professional development to encourage ongoing improvement
• feedback culture – use constructive feedback to help you and your team grow from both successes and setbacks
• growth-oriented goals – set challenging but realistic objectives to motivate employees to reach their targets.

Read more about how to be an inspirational start-up leader.