Small Business Leadership

• What is Leadership and Why Does It Matter? Leadership is the ability to guide, inspire, and influence others towards achieving a common goal. Understanding its significance helps a company succeed by creating a positive work environment.

• The Role of a Leader in a Small Business:  A company leader sets the vision, makes critical decisions, and motivates their team to achieve business goals. Effective leadership will have a direct impact on the company's growth and success.

• Learning About Different Leadership Styles: Leadership styles offer different approaches to managing and inspiring employees. Here are some examples:
  • Transformational Leader: A business owner inspires and motivates employees by sharing a compelling vision of the company's future and encouraging innovation and creativity.
  • Transactional Leader: A business owner who uses a reward and punishment system for tasks, such as bonuses for meeting sales targets.
  • Servant Leader: The business owner prioritizes the needs of their team by providing resources, support, and development opportunities to help them succeed.

These are three of the many types of leadership styles. Take time to find the style that works best for you. Don’t worry about how other business leaders run their own businesses.

• Vision and Goal Setting: Setting a vision for your business means creating a clear and exciting picture of what you want your business to be like in the future, which helps everyone work together towards the same goals. Here are two key parts to setting the right vision and goals for your business:
  • Define and Communicate a Clear Vision: A clear vision gives direction and purpose for the business. Effective leaders share their visions with employees to make sure that everyone is aligned and motivated by the same goals.
  • Setting SMART Goals: SMART goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Setting these goals will help you create a clear path - to where you want your business to be at the end of the year.

• Emotional Intelligence: This means being good at understanding and managing your own feelings and understanding the feelings of others, so you can work well with your team and make better decisions. Emotional intelligence is often referred to as “EQ,” similar to the abbreviation “IQ,” which is a measurement of intelligence. As you look at your own emotional intelligence, ask yourself these two questions:
  • Am I self-aware and self-regulated? Self-awareness is when you understand your emotions and how they impact other people. Self-regulation is managing your emotions to maintain a positive and productive environment.
  • Do I have empathy and the proper social skills? Empathy is understanding and connecting with your team on a deeper level. Proper social skills include strong lines of communication and the ability to build relationships with the people in your business world—employees, customers, partners, suppliers, etc.
  • To learn more about emotional intelligence and how it can benefit your business, visit MOBI’s blogs, “IQ and EQ - The Power of Emotional Intelligence,” and “Emotional Intelligence and Your Customers.”

• Adaptability and Resilience:
  • Success in business is never a straight line. A strong leader is flexible and open to changes in their plans (adaptable) and can guide their teams around obstacles.
  • Resiliency is the ability to rise after a fall, persist through challenges, and grow from both failures and successes. It empowers leaders to recover from setbacks and maintain focus on their long-term goals while continuously learning and adapting. Building adaptability and resilience involves developing coping strategies and a positive mindset. When you meet obstacles or difficulties, think of them as opportunities to practice being adaptable, or being resilient if things don’t go as planned. Encouraging these qualities in your team helps them to stay motivated and productive during challenging times.

• Building Trust and Rapport: Trust is the foundation of effective leadership and team performance. Building trust involves being consistent, reliable, and transparent in your actions and decisions. Building trust can be achieved through three main practices: open communication, showing appreciation, and supporting your team members.
  • Open Communication: Foster an environment where team members feel comfortable sharing their ideas, concerns, and feedback. Listen actively and respond thoughtfully to demonstrate that their input is valued.
  • Showing Appreciation: Regularly acknowledge and celebrate the contributions and achievements of your team members. Expressing gratitude not only boosts morale but also reinforces a culture of mutual respect and recognition.
  • Supporting Team Members: Provide the necessary resources, guidance, and encouragement to help your team succeed. Be approachable and willing to assist them in overcoming obstacles and reaching their goals.

Trust fosters a collaborative and high-performing work environment. When team members trust their leader and each other, they are more likely to work together effectively, take initiative, and strive for excellence. Building and nurturing trust is an ongoing process that requires dedication and consistency, but the rewards in terms of team cohesion and productivity are well worth the effort.

• Recognition and Reward:
  • Recognizing the success of your employees is an easy way to boost morale and motivate them to maintain high performance. Recognizing them on a regular basis shows that you value and appreciate their contributions.
  • Reward programs are good incentives for people to achieve their goals. They can include bonuses, promotions, or other benefits, and reinforce positive behavior and performance.
  • Not all employees are motivated by the same thing. Some may be motivated by the salary, others may need the experience, and some may enjoy the work environment or be inspired by the industry. As a leader it’s helpful to understand the motives and needs of your team, and structure your reward programs accordingly.

• Empowering Others: Sometimes it’s hard for business owners to give up control  to employees. They believe that no one will do as good a job as they can or care as much. But it’s a fantastic opportunity to allow employees to show what they are capable of doing while giving the business owner more time to see the big picture in their business. If you decide to give people in your business additional responsibilities, remember these two rules:
  • Delegate Effectively: Effective delegation involves assigning tasks based on someone's strengths and providing the necessary resources and support. You want them to succeed, not fail! 
  • Encourage Initiative and Imagination: When you give someone a job to do, make sure they know that they have the freedom to come up with new and different solutions. When employees feel comfortable sharing ideas, it sparks creativity and helps the company grow in new ways.

• Leading in Your Ecosystem: Even if you are a solopreneur without employees to manage, you can develop and use your leadership skills. Entrepreneurs build relationships with maybe different people such as customers, partners, suppliers, investors, mentors, and the community. Collectively, these contacts can be referred to as “stakeholders” because they are people or groups who have an interest or are affected by the success or failure of your business. Your “ecosystem” is the network of all the stakeholders with whom you collaborate to develop and support your business.
  • Recognizing and valuing your stakeholders helps build strong relationships and loyalty. When you consistently provide personal attention and excellent service to them, you will strengthen their trust in you and your positive reputation. These steps are crucial for business success. Regular communication and mutual respect lead to better collaboration and support.
  • Forming relationships with those outside your ecosystem is also very beneficial. Gaining recognition from industry experts and local media enhances your credibility and visibility. It will create opportunities for networking, partnerships, and business growth.

• Building a Strong Solo Brand: Establishing yourself as a thought leader involves sharing your expertise and insights with your audience. This builds your reputation as an authority in your field and attracts more clients. Since it would be impossible to be a thought leader on everything, it can be helpful to identify two to three topics about which you can provide expertise. If you have a landscape business perhaps your expertise is drought-tolerant landscapes. This is something you then become known for, and customers seek out your expertise and services.

• Networking is also essential for solo business owners to expand their reach, build their brand, and create new opportunities. Be proactive in starting new conversations with key people in your business world and make time during business hours to maintain those conversations. Networking can be scary as you get started, but keep in mind that it is beneficial for everyone! If it’s helpful, make a list of a few questions you might ask someone you’ve just met (and also a few key points about yourself and your business!). That way you will feel prepared if the situation comes up.

To learn more about how to build connections with your ecosystem, visit MOBI’s blog post, "Powerful Communication Tools for Entrepreneurs: Connecting"

• Effective Communication Techniques: Effective communication as a leader includes both incoming and outgoing communication.
  • When communicating with your stakeholders, attending business events, or meeting someone new, be an active listener. This means fully engaging with the speaker, understanding their message, and responding thoughtfully. This skill will enhance proper communication and it builds stronger relationships. Listening is often the secret sauce to becoming a great leader. People want to know that they are being heard. To learn more about active listening for entrepreneurs, visit MOBI’s blog, “Powerful Communication Tools for Entrepreneurs: Active Listening.”
  • Similarly, a good leader is accessible to their team. Find ways to invite dialogue, engagement, and participation with your team and your stakeholders. Being approachable and open to comments and feedback of any kind will encourage your team to be attentive and creative in their roles, knowing you will be open to suggestions or ideas.
  • On the flip side, clear and concise messaging from you to others makes it easier for your communications to be understood and acted upon. It can reduce misunderstandings and increase efficiency and productivity. So, be clear and concise whenever possible.

• Conflict Resolution: Identifying conflicts early and addressing them promptly prevents the conflict from escalating. Great leaders know that effective conflict resolution means understanding the root cause of the problem and finding a mutually acceptable solution.
  • A good way to resolve issues is by setting up discussions between the conflicting people or groups to reach a resolution. A smart leader will take a neutral approach to help resolve the dispute for both sides.
  • Negotiation skills can be helpful in resolving conflicts and identifying mutually beneficial solutions. Visit MOBI’s Developing Negotiation Skills session to learn more.

• Public Speaking and Presentations: When preparing to speak in public, make sure to do your homework. Know your audience, organize your content, and practice your delivery. These three steps will give you the confidence and clarity you need to deliver an effective presentation or speech.
  • In some public speaking opportunities, you might engage with the audience. This is something you should know in advance, if possible (for example a Q&A portion of the event). If you plan to involve the audience, use interactive elements, storytelling, and visual aids. These are excellent tools to keep the audience interested and involved. It will also help you deliver your message more effectively.

• Critical Thinking Skills: Critical thinking is when you don’t let your emotions cloud your judgment. A strong leader looks at situations objectively (focusing on what is true and verifiable rather than your personal opinions or feelings), considers different views, and makes smart decisions. These skills will help you solve tough problems effectively.
  • Making smart decisions requires you to gather important information on the problem, review your options, and consider all possible outcomes, including the emotional as well as the financial consequences for your business. By taking this approach, you will lessen the risks and increase your chances of success.

• Creative Problem Solving: When looking at problems and obstacles in front of you, it’s important to remember that there are almost always different ways to get around the obstacles. If you lead a team, make sure that your team members feel comfortable sharing new and different ideas on how to solve problems and get around obstacles. In business, it’s ok to fail at something. In many cases, that’s where people learn and grow. But don’t let them make the same mistakes twice. Allowing yourself and your team to “think outside the box” can also result in amazing new products and services for your customers.

• Using Data and Analytics: Every business generates an incredible amount of information on sales, operations, logistics, and more. Using this “data” can greatly help in making objective and accurate decisions that line up with your business goals. There are many tools and software available for you to gather, organize, and analyze data. Take time to learn about the data you should analyze (for example sales, expenses, customer service, marketing engagement, supply chain) and then set up the software tools that will give you the information you need. Using careful analysis to make “data-driven decisions” will help you avoid potentially costly mistakes.

• Defining Your Company Values: “Core values” are the beliefs that guide your business. Sharing your core values with everyone you work with will help them see the type of business you want to run. Include your employees and ecosystem, from full-time employees, to part-time or seasonal workers to independent contractors and vendors, and more. Some examples of core values include integrity, customer focus, and innovation. As the business leader, you must represent your core values every single day, even when you think no one is watching. Be a leader who is interested, who puts their employees and customers first, and who encourages creativity in problem solving.

• Creating an Inclusive Environment: When you create diversity and inclusion in your business, it gives you a competitive advantage! As a leader, you will see opportunities and obstacles well before the competition because you have people who see them from different angles and viewpoints. A diverse and inclusive team means more creativity in thinking “outside-the-box.” In your business, when you have fair hiring practices, and provide equal opportunities for everyone, you will build a company culture of mutual respect, loyalty, and trust.
  • An inclusive environment goes beyond just having diverse team members; it involves actively fostering a workspace that respects and values people's identities, backgrounds, and life paths. This doesn't mean everyone must agree on everything, but rather that everyone must be respectful of one another.
  • Adopting a culturally competent lens as a leader is essential. It means holding yourself accountable to research and learn about the different cultures and identities represented in your team. Cultural competence involves understanding and appreciating the cultural differences that influence the way people think, communicate, and work. This understanding can lead to more effective collaboration and innovation, as it allows you to harness the unique perspectives and strengths of each team member.
  • By committing to continuous learning and showing a genuine interest in the cultural backgrounds of your team, you demonstrate respect and inclusivity. This commitment can also include providing training on cultural competence and encouraging open discussions about diversity and inclusion within the workplace.
  • In essence, creating an inclusive environment and embracing cultural competence not only enhances team performance but also cultivates a workplace where everyone feels valued and empowered. This approach not only leads to a more harmonious work environment but also drives the success and growth of your business. 

• Encouraging Collaboration: Team building activities can strengthen relationships and teamwork. They create a sense of unity and better cooperation among team members. It can also turn the ordinary into extraordinary!

• Change Management Strategies: The best way to deal with change and uncertainty is to prepare for it; be proactive! When putting together your strategies, play the “What If” game. Write down the top 10 worst, and best, things that could happen to your business (because not all change is bad). 
  • For example, what if…you become disabled? Who will run your business and pay your bills? What if… your largest customer goes out of business or changes to your competitor? What if you get a new customer that will triple your business this year? How will you pay for the new hires and supplies you need to support the increased sales? 
  • As the leader, you need to have answers to these “what if” questions. Consult with key people on your team and come up with the best answers. Then, if one of the “what if” questions happen, you won’t make a bad decision which could potentially hurt your business even more. 
  • The “What If” game is also discussed in MOBI’s session entitled, Saving Your Business, along with other strategies to address challenges you may encounter as a business owner.

• Navigating Uncertainty: Staying calm under pressure requires managing stress and maintaining focus. A composed leader gives stability and reassurance to their team during uncertain times. If you find yourself and your business in the middle of chaos and uncertainty, remind yourself to stay calm and think clearly. The next step is to address any concerns that your team might have about the situation and maintain open lines of communication with them. Don’t avoid trouble in your business. Instead, face every obstacle head on. To quote the great Roman leader Marcus Aurelius, “What stands in the way becomes the way.” 

• The Importance of Ethical Leadership: Being an “ethical” leader means that you are someone who believes in fairness, integrity, and accountability. Ethical leaders look to build trust and credibility with their teams and lead them by example. They do this because they know that their leadership sets the tone for the entire company.

• Handling Ethical Dilemmas: An ethical dilemma could be when someone in the business lies about a mistake that was made. It can also include treating others disrespectfully or stealing from the business. When these situations happen, it requires the business leader to consider the impact on the entire team and the business’s core values. Are you a leader that allows for second chances? Do you have two sets of rules for people in your business? For example, would your top salesperson receive the same treatment as the bottom salesperson if they lied about an incident? It’s hard to make the correct decision in an ethical dilemma, but doing the right thing, even when it’s hard to do, is how bosses become great leaders. 

MOBI’s sessions on Making Ethical Decisions and Applying Ethics in Life and Business can provide some helpful information for navigating these challenges.

• Assessing Your Leadership Skills: Self-assessment tools can be a great way to determine your strengths and areas for improvement as a leader. Ask for honest feedback from the people you work with to get a clear picture of your leadership effectiveness. Perhaps consider ways to make the assessment anonymous to ensure people are comfortable providing their honest input. Constructive feedback is key to growing as a leader. Research self-assessment tools on the internet and find one that fits your needs.

• Setting Personal Development Goals: After getting feedback, identify areas for improvement as a leader. You may have to review the information carefully to identify which information is what you “want” to hear, typically more positive or reaffirming, versus information that you “need” to hear, typically more constructive.
  • Next, set specific development goals. A good plan should outline the steps and resources needed to achieve your goals. A structured plan should include consistent progress and accountability. 

• Continuous Learning: Lifelong learning includes seeking new knowledge and skills. Stay current with leadership trends and follow all developments, changes, and best practices in your industry. This knowledge will help in adapting to changes and improving your leadership style.

THE TOP 10 DO'S

1. Regularly invest in honing your leadership skills.
2. Understand the needs of your team to be successful.
3. Assess your own skills and influence as a leader.
4. Start with your values and vision in your leadership approach.
5. Create a diverse and inclusive environment.
6. Play the “What If” game so that you are prepared for change. 
7. Understand the financial and emotional implications of decisions.
8. Clearly define company goals and objectives.
9. Encourage your team to take initiative and be creative.
10. Attach timelines to your leadership development goals.

THE TOP 10 DON'TS

1. View leadership as a one-size-fits-all scenario.
2. Hesitate to ask for feedback and suggestions.
3. Give up when things don’t go as planned. 
4. Underestimate the value of continuous learning.
5. Disregard the motives and needs of your team.
6. Be inflexible in your leadership approach.
7. Commit to strategies without thorough analysis.
8. Ignore the need for contingency plans (the “What If” game)
9. Let emotions cloud your judgment.
10. Fear adapting and changing your leadership style.

If you are currently writing or have developed a business plan, consider taking a moment now to include any information about your business related to this session. As a reminder, MOBI’s free Business Plan Template and other worksheets, checklists, and templates are available for you to download. Just visit the list of MOBI Resource Documents on the Resources & Tools page of our website.

Here are some key terms and definitions used in this session or related to this session: