A good leader requires a range of skills, and small-business owners certainly need to be sure their abilities meet the demands of this position. This means that small businesses must invest time and effort into developing core leadership skills.
So what abilities do leaders need to attain if they want to improve their business? Here are six tips to help develop the skills that every good leader possesses.
1) Develop strong communication skills
Communication is the foundation of good leadership and is perhaps the most important skill for a small-business owner to focus on. Not only will you need to covey business information, you will also need to inspire passion and motivate people to give 100 per cent.
Considering that research from the Project Management Institute has found communication is the primary reason a business project will fail, organisations need to be sure they have the right strategies to foster new growth.
2) Focus on team building
A good leader won't just be the one who can communicate effectively, he or she will also want to build a strong team environment where every employee is able to foster their own connections.
By doing so, leaders can build a team that's more than just the sum of its parts and realise a strong improvement in the business's performance.
3) Leading by example
A good leader knows that how he or she acts sends a powerful message to their team - one that can either reinforce or undermine their leadership potential.
As a result, the best leaders will demonstrate the same qualities they want to see in staff. Showing is better than telling, and a good leader should be able to convey this information effectively.
4) Build a positive workplace
Destructive leaders can easily undermine the success of a business, especially if they build a toxic working environment. To avoid this, a good leader will build a positive workplace that supports staff and keeps them on board with a company's mission. Just like focusing on team-building, positivity can foster a strong workplace that meets the needs of staff members.
5) Support individuals
While developing a team is important, that doesn't mean you can ignore the importance of supporting each individual within an organisation. Helping staff to grow and develop will ensure they are engaged with their work and motivated to stay with your business over the long term.
6) Understand the company finances
A good leader will also be able to understand company finances and where the business is heading. More importantly though, they will be able to take this knowledge and use it both in their own decision-making and also when they communicate with staff.
Making these links between finances and the broader position of a company is therefore an essential ingredient for growing a business.
These are just a few tips to help small-business owners develop their leadership potential, with every industry requiring a unique set based on the challenges they face. However, if you can build these skills across both your leaders and yourself, you will be well-placed to achieve further growth and expansion across the board.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].