Newsletter
November 2020 Newsletter
The Importance of Leadership in a Small Business
Having worked with small and family owned businesses for decades, we see the importance of leadership roles within all types of enterprises.
To help you understand the value of effective leadership, there are key three elements. These include leading the business, leading yourself and leading your staff.
1. Leading the Business
Establishing leadership roles is vital for the effective running of your business. The most important element of this role is ensuring staff and partners agree on who is responsible for certain aspects within the business.
Defining a key decision maker will allow for someone to govern the business without hesitation or conflict. In a partnership this can be streamlined by delegating certain sections of the business to fall beneath various senior roles.
A business leader must:
- Confidently establish a leadership hierarchy
- Delegate duties that are not within their role
- Determine business goals and implement strategies to reach them
- Be transparent with partners and senior staff
2. Leading Yourself
For small businesses and sole traders, self-leadership is a learned skill. Self-awareness is vital in this role of self-management. It is imperative to equip yourself with the ability to plan your day, manage daily tasks and be accountable. Likewise, it is just as important to recognise when you have over-stretched your skillset and time.
Overseeing your own time must be managed effectively to avoid over working, micro-managing and becoming a servant leader with too few boundaries.
These common small business pitfalls can be avoided by:
- Having someone in the business to keep you accountable
- Scheduling in non-negotiable breaks and holidays
- Encouraging work-life balance within your business
3. Leading Your Staff
It is important to set expectations as you expand your team. Ensure each employee has clear work expectations, guidelines and goals to help them feel guided and supported by their business leader. This will keep your staff on track for succeeding in their role and motivated to exceed their set goals and KPI’s.
To lead your staff effectively, it is important to:
- Lead by example with enthusiasm and passion for what you do
- Reward your employees when you see them practice positive work ethics
- Ensure all staff feel supported and valued by the business
- Provide training, encourage further education and offer employees 1-on-1 time with you, their business leader.
Leading a business, yourself and staff come with different expectations and guidelines. By establishing a business hierarchy, managing your own role in the business effectively and supporting your staff with adequate training and career support, you can expect to see business success for yourself and staff.