There are many essential skills that first-time business owners should acquire before opening their doors.
Whether it be through previous employment, rising up the ranks or lessons learned in the classroom, an entrepreneur would do well to have a firm grasp on budgeting, inventory management and supply chain fundamentals. Advanced knowledge would further drive a successful launch and long-term profitability.
Yet, there is a major and vital talent that ultimately forms the foundation of a profitable business: Leadership.
Outstanding leaders have many tools at their disposal to inspire and instill confidence in their staff. Positive motivation is essential. Business owners need to set a tone and management style that cultivates a loyal staff that excels and goes above and beyond.
Communication skills are a key component of good leadership. New business owners should speak honestly, from the interview process onward. They must plainly articulate goals and how employees will play a role in achieving them.
Honesty through adversity is another inherent quality in a top-notch team leader. When times are rough, managers might choose to share the news with staff, explain why there’s a sales slump and lay out a plan for getting back on track. If business doesn’t pick up and hours are cut, employees might be more understanding given your transparency. The reaction would at least be much better than if hours are cut seemingly out of the blue with no reason, leaving staffers frustrated, angry and looking for the nearest exit.
Similarly, in telling an employee that they need to improve, keeping calm and explaining how they are valuable to the business when at their best will be received than berating them and threatening their job.
An effective leader also understands that their staff have lives outside of work, and that any number of issues could affect a struggling employee. Without prying, approaching someone with genuine interest in their worries and stressors lets a staffer know that you are supportive and understanding.
An important rule of thumb: ask questions first. You may assume you know why an employee is not performing at peak level, but assumptions are not facts.
Some of the many other characteristics of excellent leadership include knowing how to delegate tasks appropriately, staying even keeled when having a nerve-wracking day, and having a sense of your employees’ work habits and body language, so that you can sense low morale and take immediate action.
By getting to know the staff and being observant, successful leaders can individualize how they approach each employee rather than rely on a static response.
Recognition is another sign of a talented leader. Praising staff through an employee of the month program, an all-staff raffle or an after-hours team-building activity are a small sampling of ways to show your gratitude.
Leadership does not always come naturally. Take advantage of the multitude of educational resources available as a foundation for growth. You may want to enroll in college and continuing education classes, attend workshops and join networking groups.
A strong leader will ultimately develop their own individual style that motivates and drives employees and the business to great success.
