5 Principles of Successful Leadership in Small Business

When we think about leadership-especially in regard to building and growing a successful small business-it’s easy to envision the traditional top-down leadership that so often goes along with the term. We often think about leadership along the lines of being a major political leader or being the chief executive of a major Wall Street company. And while this certainly is a respectable vision of leadership, when it comes to small business, we’ve got to see beyond this traditional view.

Following are the top 5 principles of successful leadership that I’ve found make THE difference in whether your business flies or flops:

Principle #1:  Leadership Means Having People Skills.

Let’s face the facts-most small businesses don’t have scores of employees to lead. Instead,  leadership revolves around building successful business relationships with clients and friends of the business. Whether it’s negotiating the next big deal or selling the product or service represented by your business, your suppliers, customers, and all parties in between are who the small business owner must strive to lead.

Principle #2:  Leaders Must Be Adept At Solving Problems.

Being a natural leader makes it that much easier for a small business owner to be able to reach outside the box and come up with creative solutions to the problems and dilemmas faced by any business. It should come as no surprise that the list of qualities found in leaders corresponds very closely with the list of qualities found in problem solvers.

Principle #3: Leadership Requires Building Confidence.

Inspiring confidence in others when it comes to the capabilities of your small business is something that’s essential to success. Without this leadership trait, it would be quite difficult to handle the necessary business operations like securing financing and developing a strong sales plan. Remember, healthy confidence begins first with the leader, only radiating outward from there.

Principle #4:  Leaders Depend On Big Picture Vision.

Because the small business entrepreneur must successfully manage so many different facets of a business when leading it from inception through the growth stage, having “20/20” big picture vision is an essential leadership quality. Without this keen sense of vision to serve as a guiding light through the ups and downs-and ultimately to success-a business will gradually lose its course and drift off path.

Principle #5: Leading A Small Business Demands Boundless Energy.

It’s not always easy to keep plugging along no matter how overwhelmed you might be, but maintaining a constantly enthusiastic aura of energy is key to developing a business from the ground up. Most proven leaders will tell you that they only found major success after hitting rock bottom first. Boundless energy makes bouncing back from inevitable lows possible.

In small business, effective leadership goes well beyond the scope of leading employees alone-in reality, reaching goals means leading every single aspect of a business to success.