20 Leadership Red Flags: How To Know A Founder Isn't Ready To Scale

Forbes

23-06-2025

The ability to scale a startup hinges as much on leadership maturity as it does on market opportunity. Founders who micromanage, resist feedback or avoid tough decisions often stall progress—not because the business lacks potential, but because the leader hasn't adapted to what growth really requires.
Scaling means letting go of control, building trust in others and shifting from instinct to strategy. Below, Forbes Coaches Council members share 20 leadership red flags that signal when a founder's mindset may be holding the business back.
1. Inability To Delegate
If a founder says 'I'll just do it myself' too often, run. That lone-wolf mindset kills scale. Real growth needs delegation, trust and systems. If you can't let go, your startup stays stuck. Scaling is a team sport—not a solo mission. - Anastasia Paruntseva, Visionary Partners Ltd.
2. Believing They're The Only One Who Can Do It Right
One red flag when scaling a startup is what I call egocentric thinking. This occurs when a leader insists on delegating and controlling every aspect of their business because they believe they are the most knowledgeable and/or capable person to do the job. This mindset will always make it difficult for an individual to scale their business because they will be restricted by time. - Andrea Bullard, Andrea Bullard & Company
3. Staying Tactical Instead Of Leading Strategically
A key red flag is staying stuck in tactical mode and failing to transition into a strategic role. Early on, being hands-on is necessary, but scaling requires a shift. Founders must empower their teams to take ownership of execution while they focus on strategy. If they can't let go or trust others, they risk becoming the bottleneck. Scaling up means leveling up your leadership. - Kiran Mann, M2M Business Solutions Inc.
4. Failing To Make Timely Decisions
Indecision can destroy a startup. Decisions must be made quickly. Founders must have the ability to assess risks, benefits and alternatives. They must be agile, think on their feet and adapt. Any decision is better than no decision. - Sunny Smith, Empowering Women Physicians
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5. Rejecting Outside Feedback
Researchers have estimated that only 8 percent of people worldwide possess the right mix of personality traits for startup success, so most will need to be able to work effectively with others if they want to scale. Refusing outside feedback or getting stuck in a 'my way or the highway' mindset suggests that someone isn't ready. Sure, it may work for some entrepreneurs, but not all of us are Steve Jobs! - Megan Malone, Truity
6. Expecting Others To Blindly Follow Them
A clear red flag is when a leader criticizes others for not doing things exactly as they do. This mindset stifles creativity, trust and team development. Effective leaders recognize that different doesn't mean wrong. Empower your team to use their own strengths and approaches—this diversity is what truly drives innovation and helps carry out the vision. - Dr. Marita Kinney, BCC, Msc.D, Pure Thoughts Publishing and Wellness
7. Lacking A Transferable Vision
If a leader can't clearly articulate their vision, expectations or processes well enough to hand them off—like in a playbook that someone else could easily follow and execute—they're not ready to scale. Until the vision in their head becomes something others can understand, contribute to and carry forward without constant oversight, they won't be able to let go or build a team that grows with them. - Kelly Stine, The Leading Light Coach
8. Neglecting Team Development
One red flag is a leader's inability to be a 'people developer.' If an entrepreneur does not prioritize people and create a culture of learning and development, that startup will remain a startup. - Edward Doherty, One Degree Coaching, LLC
9. Dismissing Advice From Allies
If a founder is resistant to advice from their team and/or from their most aligned investors, that is a red flag. It's important for the founder to be the activist pushing the product or service into the world, but they need to build coalitions and learn from others who have seen similar launches. A growth mindset is a must. - Katy MacKinnon Hansell, Katy Hansell Impact Partners
10. Holding On Too Tightly As An Owner-Operator
Scaling means that things will change, and leaders will need to empower others to move things forward. Leaders who speak about themselves as the brand and how they need to position themselves as the face of the organization haven't yet made the mindset shift. It's the difference between being an owner-operator and being an owner. The owner's mindset is ready to scale. - Kristy Busija, Next Conversation Consulting
11. Staying Stuck In The Startup Mentality
A key red flag is a leader who continues to operate with a startup mindset, relying on instinct, individual effort and constant pivots. Scaling requires a shift to systemic leadership, which involves developing people, building processes and focusing on a few high-impact ideas. If the founder can't make this transition, they'll need to bring in someone who can, or risk jeopardizing successful growth. - Gabriella Goddard, Brainsparker Ltd
12. Failing To Attract A Shared Vision
If you want to scale your startup, one thing leadership must do is establish a vision that attracts the right people. Creating a vision and purpose allows you to find your community: those who share your beliefs and want to be part of the journey. This goes for team members, customers and other stakeholders. You can't become a true leader if you have no one willing to follow you. - Robert Gauvreau, Gauvreau | Accounting Tax Law Advisory
13. Avoiding Hard Conversations
Neuroleadership shows that the brain craves certainty, but growth demands embracing uncertainty and social discomfort. Leaders must train their prefrontal cortex to stay calm under pressure and turn tough feedback into adaptive learning. Scaling starts there. - Adam Levine, InnerXLab
14. Making Themselves Indispensable
One red flag is the 'indispensability complex'—when founders create bottlenecks by remaining central to every decision. I watched a promising fintech company collapse when its CEO couldn't evolve from doer to enabler. Scaling demands leaders who derive satisfaction from team achievements rather than personal heroics. The most dangerous founders secretly fear becoming irrelevant in their own creation. - Nirmal Chhabria
15. Prioritizing Activity Over Long-Term Planning
A red flag I have witnessed regularly is when the founder or leader confuses hustle with strategy. If a leader's main tool is working harder—not thinking smarter—they're not ready to scale. Startups grow sustainably when founders step out of the weeds and start building for the long game, not just surviving the week. - Arthi Rabikrisson, Prerna Advisory
16. Blame-Shifting As A Leader
As John Maxwell says, 'Everything rises and falls on leadership.' When a founder avoids responsibility and constantly blames others, they're not ready to scale. A leader who's ready says, 'If there's a problem, I own it. If there's a win, I share it with the team.' That mindset builds trust and momentum and shows you're ready to grow. - Sandra Balogun, The CPA Leader
17. Overlooking The Emotional Side Of Growth
A red flag is the absence of a systemic plan or personal readiness to manage the change. Scaling isn't just operational, it's emotional. Leaders must prepare themselves, their teams, partners and clients for the realities of growth and change. It's critical to have strong communication systems in place to adapt and solve problems as they arise. - Mel Cidado, Breakthrough Coaching
18. Lack Of Adaptability
If a leader rigidly clings to their initial vision or refuses to consider feedback, they may struggle to navigate the complexities of scaling. In the Marine Corps, I learned the value of being 'Semper Gumby,' meaning 'always flexible.' This adaptability is essential for growth, allowing leaders to evolve alongside their business and its needs. - Jay Garcia, Jay Garcia Group
19. Inability To Control Anger
If a person is quick to become angry, they are not ready for leadership. Anger is a distancing emotion that can hinder one's ability to build trust and alliances—two core skills essential for a business owner. Explosive anger usually indicates unresolved emotional issues from the past. Anger is generally unhealthy and unnecessary in the workplace. - Bill English, OnPath Coaching
20. Lack Of Self-Awareness
One flaw to look for is whether a founder is self-aware. As a key component of emotional intelligence, knowing your own strengths and weaknesses is critical for leaders to learn quickly from experimentation and pivot as needed to put their firms on a growth trajectory. By lacking a growth mindset and self-awareness, leaders can be trapped by blind spots and office politics. - Kelly Huang, Coach Kelly Huang