Common Strategic Mistakes in Early Leadership
Not Having a Realistic Business Plan
Many first-time leaders leap into business without a thoroughly worked out plan. It’s tempting to get started and figure things out as you go, but without a clear direction, it’s easy to lose momentum. A business plan doesn’t have to be a 100-page document – even a one-page summary highlighting your mission, market, financials, and key risks can make a profound difference. Lack of planning is cited as a top cause of SME failure in the UK – you need not become a statistic.
How to Avoid It
- Draft a concise business plan covering your market, offering, numbers, and goals.
- Revisit and update your plan every quarter.
- Use simple templates such as those from the British Business Bank.
Failing to Define Your Market and Target Audience
Another common early blunder is misunderstanding your true customer. Many small business owners assume they know their target market, only to find out later their message or service isn’t resonating.
How to Avoid It
- Carry out genuine customer discovery interviews and surveys.
- Use data and analytics, not just gut feeling, to define your market.
- Revisit your assumptions regularly, especially after big campaigns or launches.
Leadership and Delegation Blunders
Doing Everything Yourself
It’s natural to wear lots of hats early on, but holding on to every responsibility quickly leads to burnout and limits growth. Effective leaders leverage others’ skills and strengths rather than trying to be indispensable.
How to Avoid It
- Identify tasks only you can do and delegate the rest – even if it’s ‘quicker to do it myself’ at first.
- Use tools like Trello or Asana to manage and assign work.
- Read more from our blog: Transformative Leadership On Tap: The Real-World Impact of Part-Time Directors.
Not Setting Boundaries Between Leadership and Operations
Some leaders spend all their time in the office, focused on day-to-day issues rather than acting as vision-setters. While it’s important to understand every aspect of your business, getting caught in the weeds blocks you from seeing the bigger picture.
How to Avoid It
- Schedule fixed weekly time for strategy and reflection.
- Develop managers or leads to handle daily operations.
- Step back regularly and ask: am I working on the business, or just in it?
Team Building and Hiring Pitfalls
Hiring People You Know Over People You Need
It’s common for new leaders to hire friends or family, hoping trust and enthusiasm will trump experience. However, this nearly always creates issues down the road. Skills and values misalignment can harm both relationships and business goals.
How to Avoid It
- Write detailed job specs for every new position.
- Use structured interviews and objective selection criteria.
- If you must hire someone you know, ensure clear boundaries and expectations from day one.
Neglecting to Seek Help and External Advice
Assuming you need to have all the answers yourself is a fast track to blind spots and missed opportunities. Even the best leaders need outside perspectives.
How to Avoid It
- Build a network of mentors or join peer advisory groups.
- Invest in professional services—fractional directors, accountants, HR support.
- Tap into free and paid business support, such as the Institute of Directors or Enterprise Nation.
Execution and Operational Mistakes
All Talk, No Action
Many hopeful business owners endlessly pitch ideas, but never execute. Energy is wasted on discussions and networking instead of building a tangible product, service, or customer following.
How to Avoid It
- Commit to concrete milestones each quarter.
- Use the “ship-it” principle – release early, learn, and iterate.
- Stop chasing perfection before launch; progress, not polish, wins.
Being Disorganised
Chaos breeds stress and inefficiency. Without basic operational structures, important tasks fall through the cracks, and the business struggles.
How to Avoid It
- Develop daily and weekly task lists, prioritising high-impact activities.
- Set up digital filing and calendar systems.
- Hold short, regular meetings to focus the team (see Smartsheet’s meeting agenda templates).
Impatience With Progress
First-time leaders often expect fast growth. However, success rarely comes overnight – perseverance, adaptation, and continuous effort underpin most thriving businesses.
How to Avoid It
- Set realistic short and long-term goals.
- Celebrate progress and learn from mistakes.
- Remember, slow and steady does win this race.
Mindset and Identity Snares
Believing “Entrepreneurial” Myths
Not all successful founders fit the entrepreneurial stereotype. Believing you have to be ‘born an entrepreneur’ can undermine your confidence and judgment. Many founders discover and develop entrepreneurial skills through necessity, grit, and learning.
How to Avoid It
- Learn from diverse founders via podcasts (e.g. The Diary of a CEO).
- Focus on your strengths and surround yourself with complementary talent.
- Challenge self-limiting beliefs through coaching, training, or mastermind groups.
Frequently Asked Questions
What’s the Number One Mistake New Leaders Make?
Failing to plan adequately and define a clear target market is the most common pitfall for SMEs and startups. Without a strong foundation, leadership effort is wasted on the wrong direction.
Can I Outsource Leadership Tasks?
Absolutely. Many growing businesses work with part-time or interim executives, such as those found through Leadership Services, to access expertise and leadership as needed.
Should I Hire Friends or Family?
While it can feel easier, only hire people you’d employ if there was no personal connection. Prioritise skill, attitude, and alignment with business goals.
How Do I Know If My Leadership Is On Track?
Beyond revenue and growth metrics, watch for team morale, staff turnover, customer feedback, and how well the business runs without your constant involvement.
Learning from Experience
Few get everything right first time. What marks out effective business leaders is their willingness to listen, learn, and adjust quickly. If this is your first time leading a company, keep learning from those who have walked this path before you.
- Listen to founder stories at StartUp Podcast YouTube
- Join UK entrepreneur communities such as the Federation of Small Businesses
- Dive into deeper advice on Leadership Services Insights
Key Takeaways
- Invest time upfront in planning, organisation, and defining your audience.
- Don’t try to do it all—delegate and build the right team.
- Hire for skills, not friendship, and seek advice beyond your inner circle.
- Learn by doing, stay adaptable, and don’t fear mistakes.
- Remember: in the words of leadership expert Peter Drucker, “The best way to predict the future is to create it.”
For more leadership advice and executive support, explore our extensive Insights library or get in touch to discuss fractional director support tailored to your journey.
