Growing companies often face a crossroads when deciding who leads the team. There are two common approaches, each with clear benefits and pitfalls:

1. Hire Highly Experienced Leaders

Many startups recruit seasoned leaders who bring strategic thinking, market insights, and an extensive network of industry contacts.

Strengths:

• Immediate credibility with investors and partners

• Brings proven strategic knowledge and structure

• Can set a long-term direction for the business

Pitfalls:

• Often requires a delivery team underneath to execute their vision

• Can be less hands-on, which may slow progress if resources are lean

2. Promote or Hire Technical Experts on the Cusp of Leadership

Another approach is to elevate a skilled doer, a technician or specialist into a leadership role. They can execute and deliver fast, which is crucial in the early stage.

Strengths:

• Hands-on and agile, perfect for fast-moving startups

• Cost-effective compared to senior hires

• Drives immediate results

Pitfalls:

• May lack strategic perspective or leadership experience

• Risk of burnout if execution is constant without mentorship or support

The most successful startups often blend these strategies using experienced leaders to define the roadmap, and emerging leaders to drive delivery with coaching and development.

How to Develop Leaders in Your Team

No matter which approach your business takes, leadership development should be intentional. Here’s how to nurture capable leaders from within:

1. Identify Emerging Leaders Early

Look for employees who:

• Show initiative and go beyond their core role

• Solve problems proactively

• Adapt well to change

Spotting potential early allows you to invest before leadership gaps become urgent.

2. Provide Training and Development Opportunities

Leadership skills rarely develop by accident. Offer:

• Mentorship programs pairing new leaders with experienced ones

• Workshops and leadership coaching to build confidence and capability

• Courses tailored to the Australian business context to ensure compliance and local relevance

3. Encourage Ownership and Autonomy

Give potential leaders ownership of projects or initiatives. This builds:

• Confidence in decision-making

• A deeper understanding of business impact

• Practical leadership experience

4. Align Feedback With Business Cadence

Annual reviews are too slow for high-growth environments. Instead:

• Use quarterly or project-based feedback cycles that mirror delivery schedules

• Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound)

• Celebrate wins quickly and course-correct in real time

This keeps leadership development practical, relevant, and aligned to growth.

5. Foster a Culture of Feedback and Recognition

Create an environment where feedback flows in all directions. Encourage leaders to:

• Ask for input and listen to their teams

• Share feedback constructively

• Recognise and celebrate contributions regularly

A feedback-rich environment builds trust and self-awareness, accelerating leadership growth.

The Business Impact of Strong Internal Leadership

When leadership development is a priority, growing companies benefit from:

• Sustainable growth – Future leaders are ready when the business needs them

• Higher retention – Employees stay when they see investment in their future

• Innovation and resilience – Strong leaders foster creative problem-solving and adaptability

Leadership isn’t just about filling roles—it’s about building the capability to navigate complexity and change.

Conclusion: Leadership as a Growth Engine

For startups and scale-ups, developing leadership within your team is more than an HR initiative, it’s a strategic driver of growth and stability. Whether you hire seasoned experts or grow leaders from within, your long-term success depends on having capable people ready to guide the business forward.

At Pupal, we help startups and high-growth companies build internal leadership pipelines, career and learning frameworks that drive performance, retention, and sustainable scaling.
Let’s build the leaders who will take your business to the next stage.