Being the very best chef, accountant or football player does not mean you are ready to start your very own business. There are many things that are needed for that, including having really strong leadership skills. Unfortunately, when analyzing many small businesses, experienced investors, like Marc Leder, often notice that leadership is simply non-existent inside the company. Because of this, we should highlight some really common leadership mistakes that absolutely need to be avoided.
Owners Trying To Do Everything
When you are the leader of the company you own, you control everything. However, this does not mean you have to do everything. It is really important that you think about the bigger picture. Every single smart business manager delegates tasks. This is what small businesses have to do. From a leadership point of view, this actually builds authority and improves team efficiency. The focus should always be put on business growth for the business owner. It is up to the other employees to help.
Too Much Talking
One thing that few people understand is that the very best leaders out there listen much more than talk. Communication has to be two-way in any business environment. If this is not the case, you practically sabotage the entire business.
Inexperienced business managers and owners tend to first talk and then listen. They rarely listen to employees and miss out on various opportunities that could appear from the feedback coming from staff members. Remember the fact that there is staff that is much closer to the customer than management. These employees can offer so many insights that are going to drastically boost business efficiency. Effective communication brings in details, raises morale and even makes the entire company run better thanks to staff members that feel their input is appreciated.
Because of the fact that there is one person that has a lot of money invested in the business, there is a natural tendency to want to control everything. The best leaders realize that this is practically impossible. You cannot micromanage everything. In fact, if you attempt to do this, you will most likely be faced with a powerful burnout.
Always remember that mistakes are human. They are going to happen. Things are going to happen differently than what you initially planned. This is something that has to be accepted so you become a much better leader. Also, both you and the entire team will be happier.
Not Prioritizing Profit
There is absolutely nothing wrong with wanting to make money, no matter what others tell you. The truth is that every single business needs to be profitable or it is impossible to pay employees. Stellar service cannot be offered to customers when profits are not there. A big leadership mistake is trying to take things slow at times and fearing expansion. This often leads to not prioritizing tasks that are making profit. The business that is not profitable is going to quickly go down or will be faced with really high debt.