Many startups struggle to scale – and leadership plays a bigger role than founders often realise.
Early growth is fuelled by passion, tactics and effort. But scaling demands a different kind of leadership: more strategic and more focussed on building teams and systems.
Some founders adapt; others get stuck between old instincts and new demands. Success at scale rarely hinges on product alone – it usually depends on whether leadership grows with the business.
Australia’s startup environment is strong. In the 2023-24 financial year, 436,018 new businesses were registered.
Yet, according to McKinsey, “Of those startups that manage to launch and develop a product successfully, about 80% fail to see it through to full scaleup.”
In my experience, the key challenge is adaptive leadership. I’ve worked with many entrepreneurs and built my own businesses. The positive energy in the early stages is remarkable – but optimism and grit alone are not enough.
As Forbes puts it, “Scaleups are not fledgling startups testing their viability – they’re ambitious enterprises ready to soar.”
Maryanne Mooney
This is why leadership quality can affect a company’s market value by up to 30 percent in the eyes of investors.
Before investing in growth, founders must demonstrate that the business model has matured – from unpredictable chaos to repeatable success. It’s not just about having a promising product; it’s about showing staff, stakeholders and investors that the engine can run smoothly and reliably and at scale.
So how do leaders shift from scrappy founder to capable scaleup leader? I’ve observed one consistent pattern that has emerged: those who scale well stay anchored to their original values. In other words, a scaled business should still reflect what mattered most at the beginning.
Why the shift is difficult
The leap from startup to scaleup is rarely seamless. McKinsey notes, “For many startups, the challenge is no longer about securing capital – it’s about learning how to restructure themselves as fast as their organisations evolve.”
In the early days, founders do it all. But scaling requires a pivot: from doer to designer. From solo act to conductor. That means building a leadership team capable of handling the complexity that comes with growth.
Michelle, one of my clients, experienced this firsthand. Her pet food company was rooted in quality and purpose. But financial pressures during scaleup forced hard choices which involved cutting corners. Through reflection, she recentered her team on core values. It wasn’t easy, but she emerged stronger, with renewed clarity about her role as the guardian of the founding values.
Laying a scalable foundation
Startup leaders are visionaries by nature. They often thrive on speed and instinct. But scaling requires structure and alignment. A scale-ready business has a clear mission, a strategic plan, and well-defined roles that are understood and owned across the business. As teams grow, collaboration rather than working in silos becomes essential.
Peter Thiel writes in his book Zero to One, “As a founder, your first job is to get the first things right, because you cannot build a great company on a flawed foundation.” In my work with businesses, I am like an archaeologist, uncovering the founder’s original vision, purpose and values. I want to know if they are still being honoured as meaningful, even when circumstances change.
Brad, for instance, turned his love for Sri Lankan cuisine into a successful restaurant chain. But fear from his refugee past drove him to expand too quickly. After many sleepless nights, he reconsidered his strategy. Reconnecting with his purpose – sharing culture through food – brought clarity and better decisions.
Scaling is more than building systems. It’s about sustaining culture, developing people, and reinforcing purpose. Like a skyscraper, your structure must rise from solid ground. It’s the invisible strength that holds everything together – allowing the business to grow, adapt and thrive.
The personal cost of growth
Founders often underestimate the toll expansion takes on their health, relationships and sense of self. Outsiders may admire success, but insiders know: scaling tests your integrity, stamina, and self-belief.
Bianca, the skincare entrepreneur, lost her way furiously chasing an IPO to please her father. She had financial success but felt empty. It took stepping away from the business to rediscover her purpose.
Paul, whose sportswear brand stemmed from his health journey, chose slower, values-led growth despite pressure from advisors to accelerate. Inspired by his own health struggles, he created apparel designed to motivate people toward fitness. The result? A global brand that is making an impact.
10 ways to move from startup to scaleup
Shift from founder to builder: Empower others. Shape systems, talent and culture. Step back from the weeds but keep a sharp eye on progress.
Clarify vision, purpose, and values: Make them your compass. Embed them across every level and remind everyone of them continually.
Build repeatable systems: Ensure consistency without stifling innovation. Make excellence repeatable.
Recruit the right leaders: Surround yourself with people who can grow the business beyond you. Ensure they are in the key roles and set up for success.
Focus relentlessly on the customer: Let customer needs, not ego, guide your strategy.
Enforce financial discipline: Balance bold moves with smart planning and rigorous practice.
Scale a healthy culture: Growth should make your values louder, not quieter.
Scale yourself: Seek mentorship, feedback, and growth. Be a worthy leader.
Guard your energy: Focus on what matters. Think about the best use of your time and say no more often.
Think long-term: Aim for reputation, impact, and enduring value.
Scaling is not just about getting bigger. It’s becoming better, wiser, and more purposeful.
It demands new leadership approaches, a grounded foundation, and a commitment to what always mattered most.
When founders lead with clarity and integrity, they don’t just grow companies – they grow legacy.
Maryanne Mooney is a global executive coach, international speaker and author.
