Studies suggest that all leading businesses have many things in common. Among them is the influence of a good leader. All successful business leaders are believed to be inspiring, goal-oriented and good at working with teams. Research also suggests that strong leadership benefits companies with a 41% decrease in employee absenteeism, a 21% increase in profitability and a 59% reduction in turnover. If you want to make your business successful, here are some powerful characteristics that you too could develop.
Seven powerful characteristics of a successful business owner
• Commitment to a vision and set of values: Successful business owners lead from a sense of purpose and responsibility to create meaningful change. Such leaders know what their vision is and do not succumb to situations where they have to compromise on their goals. They use their values to further their business vision and instil similar values in their team.
• Impactful communicators: Communication is perhaps the most important skill for every business owner. Daily communication happens in a variety of formats. For instance, body language, including paying attention and making eye contact, is communicating that you care about others. It can develop trust and honesty among team members, which helps everyone feel valued.
Good communication also involves being able to talk to employees clearly about work expectations. When someone is not performing to their best capabilities, a leader should know how to provide constructive feedback to that person. In addition, being skilled at writing is also necessary since major tasks in a business involve researching, synthesising information and writing content.
• Genuine and transparent: Successful business owners connect well with their teams by being transparent. They share their story, struggles and facts about their entrepreneurial venture with staff, which, in turn, builds trust. They are respectful of others and facilitate honest conversations within the organisation. Successful owners recognise the value in people’s differences and seek to build a platform where differences are treated with respect.
• Encourages collaboration: All successful teams collaborate with each other. Collaboration is necessary to keep your team engaged in work, and a good leader knows how to facilitate the same. Providing mentoring opportunities to your staff members allows them to learn from you and vice versa.
In addition, every leader must be aware of the strengths and weaknesses of every person on their team. They should use this awareness to organise group projects, workshops and other activities. Such collaborations allow people who are weak in a certain area to learn from someone who is strong in the same area.
• Not afraid to take risks: A good business leader faces uncertainties with courage and does not allow them to adversely affect their judgement. Taking risk is an important component of every stable leadership, which eventually helps pave the path toward success. Even if there are setbacks that disrupt plans, successful leaders use their perception to revise strategy and come up with alternate solutions to problems.
• Decision-makers: Businesspersons make decisions always. There are numerous projects that need their attention and assessment simultaneously. It is important to be rational and make decisions that are in the best interests of the organisation.
A good business leader does not shy away from making difficult decisions when they need to be made. While deciding on something, a good leader always weighs all possibilities carefully. They always settle down on those strategies and plans that are best for the future of the company.
• Inclusive: Many successful business owners are known to be inclusive in their approach toward staff. Instead of being dictatorial, good leaders use empathy to make everyone feel comfortable. Leaders who are approachable listen to others, encourage diverse opinions, do not criticise or judge harshly and encourage creativity.
With social, cultural and economic differences in people’s backgrounds, strong leaders have policies for mitigating workplace conflict. They ensure that the team stays connected to each other by fostering an inclusive culture where everyone feels safe and respected.
Being a business owner, it is important for you to think about how you can minimise the impact of financial insecurities on your business. Consider getting business insurance to protect yourself from such risks.