Top 10 Qualities of Successful Small Business Leaders

Posted by Ryan Howard on May 18, 2018 10:43:38 AM

Successful Small Business Leader

Do a survey of successful business leaders and you'll find essentially similar qualities. Leadership is not about telling people what to do. Successful leaders demonstrate passion, perseverance and the willingness to get into the action to build their dream. Running a small business means wearing many hats, trying something new almost daily and admitting when help is needed. If you're starting a business or hiring new people...

Build a successful small business with these 10 leadership qualities.

1: Visionary

First and foremost, a strong business leader will have a focused vision of the future. Creating a business starts with having a goal and a road map for getting there. A visionary leader will take well-researched risks and build a team of other qualified visionaries. They must trust their creative intuition and think ahead, even when the future picture is unclear.

2: Adaptable

The most successful businesses will adapt to market forces and the demands of their audience. Brick and mortar grocery stores, as an example, are faced with adapting to online selling and delivery or else close up shop. Some businesses will have seasonal customers and may require branching into complementary markets to sustain year-round revenue. Business leaders must be goal-oriented but flexible, making practical decisions based in reality for their companies to stay afloat. 

3: Motivated

In the beginning, small business leaders can feel a honeymoon phase. They're thrilled with the idea and the prospects of an audience who is responding positively. Once that phase fizzles out, or other challenges arise, it can be easy to falter and fall back. A successful business leader will find motivation, encouraging the team to keep going even when things look bleak. Leadership must know when to change course and when things will be better by pushing through to the other side. A positive, encouraging attitude is contagious and may be the winning formula for a successful small business. 

4: Resourceful

There may be times when the business has to rely on existing resources, especially in the beginning stages. A smart leader will stick to a budget and make informed decisions on spending and investment in the business. Being resourceful also means improvising when things don't go as planned. Leaders that can think on their feet can build successful teams who are empowered to do the same.

5: Organized

Any new venture requires some organization - whether it's starting a new business or taking a vacation. A successful business is reliant on the ability of leadership and your team to be organized. From the company's legal status, accounting and finances, human resources and other tasks, efficiencies are built through organized and well-documented processes. 

See also: Best Practices for Organizing Small Business Accounting

6: Accountable

Humility goes a long way as a positive leadership trait. Clients expect any business they hire to be accountable for their products and services. Employees expect leadership to hold themselves accountable for the company direction and being treated in a fair manner. Partners and investors will look for leaders who are trustworthy, transparent and honest about their business practices. 

7: Caring

The success of your business has everything to do with the team behind it. Your team will respond to a leader who cares, not only about the success of the business, but also the success of the people of the business. A leader who is approachable will be the leader who receives feedback, positive and negative, that could change the trajectory of the business. 

8: Confident

It's fairly obvious to tell the difference between confident and desperate. Successful business leaders exude an easy confidence, instead of asking for (or worse demanding!) attention and respect.  Arrogance and egotism will also turn off employees, clients and investors. Successful businesses are built on fulfilling a need and a confident leader can be trusted to do just that.

9: Inclusive

Small business employees will stick around for a leader who will celebrate their highs and encourage them during the lows.  A culture of inclusiveness allows the team to feel as if they're a part of something larger than themselves. They'll feel invested in the success of the business and will work hard to ensure it. 

10: Financially Smart

Financial decisions affect all businesses, no matter the size. Successful small business leaders must not only have the company finances in order, but must also understand different types of investors and what they are looking for. They will not only stick to a budget, but will also follow through to ensure they're attracting the right clients who will pay on time.  A small business leader will  protect their growing company by getting client-signed contracts so they have documentation, in case they have to pursue legal collections

Leaders with these ten qualities are leading successful small businesses right now. They're smart, open-minded, and passionate about the future of their company. These traits will help build a company of growth and profitability, as well as a team that feels proud to be a part of it. 

Topics: Best Practices, Business relationships, Entrepreneurs