What does it Mean to be a Small Business Leader?

Leadership: The capacity or ability to lead. A superpower few have, but many seek. 

“The first rule of leadership: everything is your fault.” A Bug’s Life

If you’re the leader of a small business, you know how difficult it can be to wear the many hats required of you. Maybe you started the business never expecting it to grow beyond just you as the sole employee. Or perhaps your vision was to one day run a multi-faceted firm. No matter how it all began, you now find yourself as the leader of your company hustling to keep up with all that entails. 

Being the leader of a small business means you’re wearing a lot of hats. You must create the vision and develop the strategy of where you want your company to go. You’re in sales, human resources, customer service, finance, marketing and perhaps even janitorial services. For a company to succeed in these highly competitive times, it’s imperative the leader is engaged and ready to jump in where needed. 

If you have employees, it’s important to guide, but not restrain them. As General George Patton said, “Don’t tell people how to do things, tell them what to do and let them surprise you with their results.” You must lead by example and not expect your employees to handle tasks and jobs you wouldn’t do yourself. 

Running a small business requires you always be looking ahead, while keeping an eye on past results to ensure your view is balanced. Some people are born leaders, while others struggle to handle all the tasks required to keep a business humming along. You may be great with finance, but don’t have people skills. You might have zero desire to be involved in sales, but love to find new ways to market your company. No matter your skillset, as the leader of your company, you will  be required to have a hand in all aspects while leading others in their areas of responsibility.

Share your vision and strategy with employees. Never assume your employees know or share that same vision just because they work there. For a company to succeed, it’s imperative everyone is on the same page and working towards to the same goal(s). 

Below are a few key aspects to keep your company moving forward whether you have just a few employees or dozens.

Set the tone: Company culture is a direct reflection of those who are in charge. Think of it as the trickle down theory and the trickle starts with you. What kind of work environment do you want for employees and customers? You must be clear on what behavior is and isn’t acceptable and develop guidelines to hold people accountable. As the leader, everyone is watching the example you set, including your customers, so it’s imperative you set the example you want others to follow. Communicate often and ask for feedback to ensure what you’re saying is what they’re hearing. Be respectful, celebrate achievements and say thank you often.

Delegate: Your job, as the leader, is to focus on the success of your business and your people. That means you must let go of daily tasks that can be handled by your employees. This not only relieves you of making every decision, but also empowers employees and shows them you trust their judgement. But delegating can be hard to do if you’ve always been the type who can’t let go or trust others to do it your way. Former President Ronald Reagan had it right when he said, “Surround yourself with the best people you can find, delegate authority, and don’t interfere as long as the policy you’ve decided upon is being carried out.”  

Provide feedback: Sometimes it’s just easier to do it yourself rather than provide feedback on the way someone else is doing their job. Offering feedback though not only provides clarity, but helps your team grow and improve their performance. It’s important to deliver feedback that will lead to positive results vs. simply telling someone their work isn’t up to par. Encourage employees to innovate and let them know they are a valued part of the team while reminding them of the overall vision you are all working towards. Feedback is more than just pointing out problems, it’s about fostering a culture of continuous improvement and reaching the goals you’ve set.

Recognize achievements: Keeping employees motivated and engaged is imperative to achieving success. Recognition of individual accomplishments and team wins will lead to more employee satisfaction, increased engagement, company loyalty and employee retention. Many companies have developed long-term, formal recognition programs while others have a more lackadaisical approach. The goal should be to always have a system in place to recognize a job well done. It’s important though to ensure the recognition you offer is something that will incentivize your employees. Whether it’s gifts, time off, personalized awards or cash, it’s imperative you understand what type of recognition will motivate your employees. Showing appreciation and recognizing the efforts of team members will go a long ways to keeping employees engaged and satisfied.

Stay in touch with customers: Without customers, you have no business so it’s important to have systems in place to generate feedback from customers regularly. Criticism may sting, but if it’s legitimate, use it to make you and your company better. Customers want to know they are valued and asking for feedback is a crucial step to building customer loyalty. It can also be an effective tool in developing better products and services and in keeping your competitors at bay. If customers feel valued, they are less likely to leave and more likely to recommend your company to others. 

Risk Management: As the leader of your company, you must always be looking at the risks inherent in running a business. These include minimizing potential losses along with making strategic bets that can lead to growth, such as expanding into new markets or developing new products. This also includes IT and cybersecurity risks, proper insurance coverage (are you in a hurricane, earthquake or flood zone?), keeping track of your online presence on social media and review sites and managing cash flow. No matter the business you’re in, leaders must understand risk can never be completely eliminated, however learning to manage it, while not letting it hold you back can lead to unparalleled success.

Small business leaders must always be hustling to grow their business while staying competitive and keeping an eye on the bottom line. Learn to understand your strengths and weaknesses and always be willing to learn and grow. 

Apple co-founder Steve Jobs once said,  "The people who are crazy enough to think they can change the world are the ones who do.” Don’t be afraid to fail and when needed, correct your course. Cut your own path and never let go of your goals and vision of success. There are no sure things in life, especially as an entrepreneur and leader. However with the right mindset, staying focused, and believing in your dream, chances are, you’ll find success beyond your wildest dreams. Good luck and Godspeed.