If you run your own business, you're a leader. Leadership is about making decisions, grasping opportunities, responding to change and planning for the future. Of course, if you have employees then people management is also a significant part of your role.
It's often said that some people are born leaders. Leadership can certainly come more naturally to some but it's important to remember that leadership skills can be learned. Every business owner needs to focus on this key aspect of running a business.
Identify areas for personal development
Chances are you're starting a business in an area where you have pre-existing experience, expertise or a particular passion. And that's great, this will inspire your business idea and spur you on. But, running your business is likely to mean you need to master new skills and knowledge - especially in the early days when you aren't yet making enough money to bring in outside expertise or additional staff.
When starting and running a business, you might need to master:
- finance and bookkeeping skills
- cash flow management
- an understanding of marketing and social media management
- timekeeping and planning
- sales skills
- the resilience to bounce back from rejection
- leadership skills as your business and team grows
Think objectively about where your skills and knowledge might lack. Ask people you trust for feedback; you might be surprised to hear what others think your strengths and weaknesses are.
Access training and support
A business mentor can be a great source of help on your business journey. You can find a mentor through online resources such as mentorsme.
You can also access a range of training, advice and possible funding from your local business support organisation, trade association or further education. Other free and cheap sources of training include LinkedIn Learning, The Prince's Trust, the FSB and through the regional network of Business and IP centres.
Making decisions
Business owners have to make a lot of decisions and this can be overwhelming, especially in the early days. Risk-takers usually find decision-making easier than those that are more risk-averse. But there needs to be a middle way between making quick decisions on the hoof and letting indecision stop you in your tracks. Making decisions gets easier as you grow in confidence.
Good decision-making must be driven by your vision for the business. Decisions must be evidence-based and the results should be measured. It's also worth taking soundings from your own employees or trusted advisers. But at the end of the day, as the strategic lead for the business, you need to make the final decisions and take accountability for the results. No-one can avoid making some mistakes; learn from them and then move on.
Forward-planning
It can be easy to get so caught up in keeping the ship afloat that you don't notice that it's heading in the wrong direction. No matter what happens on a day-to-day basis in your business, you need to keep focused on the longer-term goals.
Business strategy is about where your business is going not where it has been. It's important to have a business plan; one that can evolve as you grow your business. Understand where the value lies in your business - not just in your revenue potential but in resources and people. Then you can plan business growth around that value. Being clear about your goals can also ensure that you hire the best people to help you achieve them.
Responding to change
Things don't always go to plan; responding to change is part of your role as business leader. If anything has taught us that, it is the COVID pandemic. Businesses that were able to adapt and pivot during these unprecedented times have been best able to ride out the storm.
But it's not just external factors that can derail your plans. Often the bumps in the road are cause by internal issues - such as a production problem or a difficult team member. That's where you, as the business owner, may have to make some tough decisions.
Managing people
Management style can make or break a business. Lead by example, by being polite and respectful to colleagues; create an environment where staff can share ideas and give feedback without fear of ridicule. Be prepared to delegate and try to avoid micro-managing.
Communication is one of the cornerstones of good people management; be clear about what needs to be done and explain how the tasks align with the values and goals of the business. By setting guidelines and supporting staff with information, resources and training, they will be best placed to meet your expectations.
