Being in a leadership role doesn’t automatically make you a leader. In that same way, being the founder of your small business doesn’t make you a leader.
You can be in a leadership role but have no affluence required of a leader. However, the good news is that leadership can be developed.
And while I can’t share all the laws that govern leadership, I can share with you important leadership skills that will help you lead and guide the people in your organization.
Therefore, this blog post will look at what leadership is, the difference between leadership and management and the essential leadership skills you need to acquire. Let’s dive right in!
What Is Leadership?
Leadership is the ability of an individual to influence, guide and motivate people in a group or organization towards a common vision or goal.
The word leader seems to be coined from an old English word laedere, meaning the one who leads.
Leadership is not found in titles or assigned leadership positions; it is found in the person who can influence the decisions of other people.
Are Leadership And Management The Same?
There has been a common misconception about leadership and management being the same. And while the both complement each other, they’re not the same thing.
In management, the individual takes care of the systems and processes of the day-to-day operations. A managerial role can’t be taken up unless the individual is appointed.
Additionally, a manager is required to oversee the employees and maintain systems that will help to maximize work efficiency.
However, leadership focuses on growth, change and influence.
In leadership, the individual takes risks, navigates the charts for business growth and makes an impact in the lives of others. And while some leaders are appointed, you don’t need a job title to make you a leader.
Leadership Skills To Acquire As A Small Business Owner
Let’s dive into the essential leadership skills to acquire as a small business owner.
1. Decision-making
Decision making is one of the top skills that small business owners need to effectively lead a team. In the fast paced digital world, making sound decisions whether big or small makes it easier for your team to follow your direction.
Being indecisive plants doubt in the minds of your employees.
Good leaders can weigh the pros and cons of a choice before making a decision. A good leader thinks things through. Always being aware of how the decision will affect the teammates before taking them.
2. Time management
Time management is the ability of an individual to plan and organize time in order to effectively finish up tasks. This is a crucial leadership skill that people often overlook. As a leader, effectively prioritizing and delegating tasks helps you and your team members to avoid burnout, stay organized and meet the demands of your business.
Learn strategies for effective time management here.
3. Financial management
Financial management is the planning, monitoring, directing and controlling of finances. As a small business owner, this is a leadership skill that shouldn’t be joked with. Your ability to manage your finances and maintain a healthy cash flow is a skill essential for organizational success. Business leaders who are good financial managers can effectively grow their business without compromising on team members or the quality of products or services.
4. Relationship building
Just like John Maxwell would say, “You’re a leader only if you have followers, and that always requires the development of relationships”. Building relationships with the right people will open doors of collaborations and partnerships. As a small business owner, building great relationships with your team members, other businesses, suppliers, and your customers makes you a good leader.
A great leader is good at building and maintaining relationships with the right people.
5. Communication
To be a great leader, communication should never be compromised. Whether it’s with your team, clients or stakeholders, effective communication improves trust and loyalty.
Also, as a leader, you have to be open to actively listen to the people around you. Address mistakes and apologize before it festers and grows.
Trust is the true essence of leadership. Your team members, stakeholders and customers won’t follow your lead if trust is breached.
6. Problem solving
People are inclined to follow individuals who have a knack for solving problems. Every business faces challenges and your ability to step up, analyze the problem and put strategies in place to solve it doesn’t just earn you respect, it makes you an effective leader.
When you’re proactive and solve major business challenges, your employees will naturally trust your ability and follow you.
7. Conflict-resolution
Conflict is bound to happen amid team members who live by different principles. However, what matters most is how the conflict is resolved. This effective leadership skill helps business owners to actively listen to team members, constructively settle issues and improve the work environment.
8. Adaptability
This is the ability of an individual to change or adjust to new conditions easily. With the ever-changing business landscape, leaders should keep a flexible mind towards change. When you stay adaptable and embrace change, you stay ahead of your competitors, enter new markets and help your team learn to adapt easily too.
9. Empathy
Empathy is the ability to feel and understand the emotions of others. Empathetic business leaders find it easy to provide a positive work environment, build trust and improve work culture. Showing empathy helps you connect better with your employees and ultimately make them feel valued and appreciated.
10. Critical thinking
This is a kind of thinking where you’re able to discern or judge an issue based on careful analysis and evaluation. Business leaders who put this skill to good use take it upon themselves to analyze situations carefully before making a call. This leadership skill is important for every small business owner looking to influence the decisions of their team members.
11. Resilience- A leadership skill to acquire
Resilience is the ability to bounce back from challenging times. A good leader always leads by example. A resilient leader knows how to manage team members, business setbacks and personal challenges without letting them affect the business. Resilience is what sets top business owners apart from others.
Additionally, when you’re resilient, you set the pace for your employees to follow.
12. Creativity
A creative business leader is a leader who works to bring new and fresh ideas to the company through their active imagination. When a leader is creative, it motivates their followers to follow suit. In the business world, this helps to set a business apart and give it a competitive edge.
Conclusion- Leadership skills to acquire
Effective leadership is key to the success of any small business. While some people are naturally good leaders, anyone can develop this skill with the right mindset. A strong leader motivates their team, stays open to learning, and hires others with leadership potential to manage different areas. The essential leadership skills we’ve discussed can serve as a guide to help you grow as a leader and drive your business toward success.
