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5 Essential Qualities of Effective Small Business Leaders

By: SmallBizClub

 

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Small business owners and managers are oftentimes the most inspiring leaders around. These entrepreneurs typically don’t have the security that large companies do, meaning one small mistake could mean failure and bankruptcy. They also have to work carefully with extremely limited resources that are often stretched even thinner than they would be elsewhere.

 
This is why effective small business leaders typically possess a few common traits which enable them to be successful in their work. If you’re at the helm of a small business—whether you’re trying to get your startup off the ground or managing a company you’ve run for decades—consider the following qualities in the context of your leadership style.
 
1. Adaptability
 
With small businesses, there is often no standard problem-solving procedures in place that work for all companies and leaders. This means that small business owners who want to be successful must be quick at thinking up new solutions to fix the unique problems they will face.
 
2. Qualifying a Smart Investment
 
Small businesses tend to have extremely limited resources. That’s why most small businesses owners will hold on to every penny they have in the struggle to keep their business afloat.
 
It’s the business owners who know when to spend those funds on a smart investment who separate the mildly successful businesses from the ones that will grow into something larger. That’s why having a good sense for when to invest is crucial.
 
3. Motivation
 
Charisma is often something that leaders in business think they need in spades, but in truth all they need is the ability to motivate the people who work with them. That means they need to know how to motivate their employees to work smarter, harder and more efficiently to produce better results.
 
4. Adopting New Solutions
 
You’ve likely heard of small businesses that excelled because they took hold of new marketing opportunities, like those social networks can provide. These companies adopted new solutions, which allowed them to take a firm grasp of new markets as they developed. This same principle still applies today, with the emergence of new ways to communicate.
 
5. Studying New Ideas
 
The most successful small business leaders have always believed they could learn more. That’s why every leader needs to consistently seek new knowledge and training to stay successful in their field. One of the best ways to do this, while simultaneously improving your leadership skills, is to seek a degree in business. A graduate of the UF business degree program advises all those who intend on leading a small business to consider receiving formal business education. This, she reports, can be applied to any industry and is an invaluable source of training for those who don’t already know the ropes of small business management.
 
While there are hundreds of other qualities that support strong and successful small business leaders, the five listed above are the some of the most common. They establish a firm foundation that will allow any businessperson to succeed when the right attitude and work ethics are acquired.
 
Emma SturgisAuthor: Emma Sturgis is a freelance writer living in Boston, MA. She writes most often on small business and education.
 

Published: October 8, 2014
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