You are clearly equipped with drive, vision, and determination as a small business owner. You probably even have natural leadership qualities.

But great business leaders use more than just natural-born talent. To be a great leader, you do not have to be Steve Jobs or John C. Maxwell, but specific attributes cannot be denied.

The best leaders work on their skills and continue to refine them throughout their careers.

Keep reading for guidance on:

• What leadership qualities are
• Why leadership qualities are important
• Which leadership qualities do you need as a business owner

What Are Leadership Qualities?

Leadership qualities are the attributes that make up a great role model. Influential leaders can command their audience and create connections that inspire others to better themselves. 

When it comes to leadership attributes, there are so many effective ways to lead. However,studies show that these ten qualities are the most effective strategies to lead your business.

Whether you have an established business or are just starting out, developing these ten skills can significantly improve how you lead, your business runs, and your employees perform.

Why Are Leadership Qualities Important?

Good leadership traits are essential because your business is a mirror of you. Your employees look to you for guidance. You must model the behavior you’d like to see from your employees. You demonstrate strong leadership through leading by example, as well as through focused teachings.

As a business owner, how you conduct yourself is everything. If you show up late to work, your employees might either think it’s okay to do the same or begin to resent you for your perceived lack of effort. If you are rude to customers, your employees might think it’s okay to mimic your actions.

As a leader, you must always be on. It might seem like a big responsibility, but that is part of what you signed up for when you chose the challenge of owning a business.

Continuously developing your leadership characteristics is vital because you should always strive to be the best example possible for your team.

What Leadership Qualities Do You Need As A Business Owner?

1. Maintain a strategic perspective
2. Be a quick study
3. Be decisive
4. Normalize change
5. Develop employees
6. Be firm but fair
7. Promote collaboration
8. Be compassionate
9. Put people at ease
10. Promote diversity

1. Maintain A Strategic Perspective

A strategic perspective is a strategy you take to run the ins and outs of your business. This entails looking ahead and understanding how to get there. 

Aspects of your business that you need to strategize are:

• Goals and projections: You created goals and forecasts for a monthly and yearly basis. However, you can never honestly know what business will be like. This means you must continue adapting your processes based on your business's performance.
• Financials: You must keep your finances in order to maintain a successful business. With an ever-changing economy and inflation, this is no easy feat. Being prepared, adaptable, and knowledgeable is more important than ever for your business and its money.
• Employees: One of the most intricate parts of owning a business is understanding how many employees you need to run your company efficiently and cost-effectively. Employment is directly tied to financials, so you need to have a strategy for checking that you have the correct balance month after month, year after year.
• Procedures: To remain legally compliant and keep your employees safe, you must regularly check that your standard operating procedures are up-to-date. This has to be a regular part of your strategy, as it takes time and money to maintain protocol.

2. Be A Quick Study

You must be informed a a leader. The business world evolves quickly, so learning new skills can only benefit your business. If there is a more efficient way to do something, like automating your business, learn it and put it into practice. Being a lifelong learner is a huge part of being a successful leader.

3. Be Decisive

Making decisions comes with the territory of being a true leader. If you are someone who struggles with making decisions, try these tips:

• Look at both potential outcomes and choose the option aligned with your big-picture goals.
• Make informed, gut-driven choices. Do your research but go with your instincts.
• Understand that failure is a part of life. If you make a mistake, learn and adjust. 

4. Normalize Change

Being adaptable is a key to overcoming many situations. If you lead your employees by showing them how to make informed adjustments and adjustments on the fly, your business will run more smoothly because they will learn how to do that.

In business, each day brings something new. Learn to invoke a positive attitude towards change rather than fear it. If you can develop a culture of adaptability in your business, your chances for longevity undoubtedly increase. 

5. Develop Employees

With your employees, you will get out what you put in. People crave knowledge. Be an effective leader who equips your team members with the tools to help them reach their full potential. 

Some approaches to help develop your employees are:

• Encourage professional and personal development
• Implement goal setting and check-ins with feedback
• Instill self-confidence and trust
• Nurture relationships

When employees see an empathetic leader who cares about their progress, they are more likely to work hard and be a positive addition to the company culture. 

6. Be Firm But Fair

When in a position of power, it is important to maintain consistency and discipline. There is beauty in the balance of promoting positive relationships while upholding the proper level of respect.

Your employees must know they can turn to you in difficult situations. Regarding discipline, it is important to have company policies and to hold your team to those policies. 

When you started your business, you made policies for a reason, so when a situation arises, you should follow it to the tee to continue building trust and equality in the workplace. 

7. Promote Collaboration

Studies show that when involved in decision-making, employees will be more bought into their tasks. Teammates who feel valued are more likely to remain in that business and contribute positively to their work environment. 

Often, your employees are grinding it out with the day-to-day tasks or customer face time, so having enough self-awareness to understand that they might have a different perspective than you is important. True leaders develop practical communication skills by collecting feedback from their teams. 

8. Be Compassionate

Now more than ever, employees want to know that their bosses care about their well-being. This means implementing strategies that will actually help them — not supplying useless perks that you think will promote morale. To do this, you should have a system in place to collect employee feedback about their needs. 

You need to have the emotional intelligence to recognize that even though you are the boss, you might not have all the answers. Effective leadership includes active listening for what is going on in your business and being open to adjusting if it helps your employees do their jobs better and become better people. 

9. Put People At Ease

When employees experience a workplace culture that is composed of co-workers with pleasant attitudes, teammates are more likely to be more productive. It’s simple: employees will work better together when they respect their coworkers.

This does not mean all your employees have to be best friends. This also does not mean that you must be lax about your rules and company policies. It simply means that you take the initiative to create an environment that promotes collaboration, respect, and problem-solving.

10. Promote Diversity

When in a leadership role, it is your job to build a workplace culture that values people from all walks of life. Team members from different backgrounds, cultures, and demographics will bring varied points of view to your business.

Remember that outstanding leadership also means learning and growing to be better for yourself and a better example for your employees. 

Conclusion

As you continue to grow your business, you must evolve as well. Being an excellent leader means:

• Constantly practicing and learning effective leadership skills
• Being adaptable in various situations
• Making decisions and problem-solving with your business and employees in mind

No matter what your leadership style is, practicing those ten essential leadership qualities can feel empowering and will create the opportunity for you to be an inspiring leader.

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Sources:

The Most Important Leadership Competencies ⎸ Center for Creative Leadership

Collaborative Leadership Theory ⎸ University of Kansas

Leaders Don't Have to Choose Between Compassion and Performance ⎸ Harvard Business Review