Having the right leadership style can make the smallest of companies a fierce competitor against the bigger players.
The business arena in Aruba is characterized by a large group of small businesses.
The majority of the registrations at the Chamber of Commerce consist of small businesses. It is known that many companies start small and depending on their success they continue to grow. But growth does not come easy.
Every business on the island face a variety of challenges, some similar others completely different. One challenge in particular that many companies face regardless of the size of the company is the inadequacy of the leadership skills.
To address the challenge that is leadership and become a strong competitor, there are some aspects that any entrepreneur or small business owner can focus on. Hereby the business owners can improve their leadership skills and build a solid relationship amongst their employees, business relations and the customers. A good set of leadership skills contribute to a better business strategy. It solidifies the goals and opportunities that the business can reach and creates a positive spirit at work. There are a few tactics that any business owner can include to achieve a better leadership.
Have a vision and share it
No business can survive without a clear vision. Good leadership is always supported by a vision for the organization. Without vision there is no direction and no planning can be put in motion causing businesses to finally lose strength and it will fail. A vision embodied in a vision statement fortifies the leadership’s focus to reach its goals. A clear vision helps a business look into the same direction and do the right things to achieve and overcome. The leadership vision is most effective when it is shared throughout the organization. Therefore, sharing the leadership vision will give strength to have the same mindset and determination to make the dreams become a reality. A shared leadership can be contagious and once this becomes part of the whole organization then you will see more leadership with vision arise throughout the company, which is specially needed in small organizations in a competitive environment.
Get into reading
In a continuous evolving world it is important for any business to follow the latest developments. There are many books written on leadership and from each of these books one can have at least one take-away that can be implemented in any business. By expanding your knowledge on leadership you can learn to be more effective and avoid mistakes due to inexperience or limited leadership skills. Leadership requires continuous improvisation and different situation require different qualities. A good leader grows by gaining more knowledge and most importantly putting the lessons learned into practice while learning from past mistakes.
Reflect
The previous topic intertwines with the next point presented: reflect. Reflection is something that many might not see as a valuable activity but this is something that can save a lot of time and stress. As an entrepreneur you face many obstacles and you need to learn from your mistakes. Reflecting on what has been done and what has been achieved and most importantly how and at what cost is beneficial for future decision.
In a continuous evolving world it is important for any business to follow the latest developments. There are many moments where decisions are made which can be consider hasty or irrational but the results show whether it was the right approach or whether there would be a better one. The importance within reflection lays in how it can help improve the business and the collaboration with business partners. Nobody is proud of their mistakes but everybody can see the lessons learned. Own the lessons or become owned by mistakes that will keep repeating. There is no success without failure. As an entrepreneur you know the risk you are taking and how much skin are you willing to have in the game. You reflect to understand the situation and in this aspect it is important to be honest with yourself. You have to analyze your decisions objectively and to some extend be critical with yourself. In a small business there are not many puppets to put the blame on, but if you as business owner cannot include yourself in the pool for a share of the blame then the problem may persist. Decision making is hard. But you can reach good leadership by reflecting on how you and everyone in the team has performed and be accountable for the actions taken.
Empower
A great leader inspires leadership. This is particularly important in a small business. Making your staff feel empowered is one of the greatest characteristics of a good entrepreneurial leadership. Good leadership where others are empowered can stimulate productivity and is a healthier work environment compared to a place where others are looked down and not valued or considered to be empowered. Great leaders have a certain style where they address the team in such a way that they see the leader as a mentor and source of inspiration. They are empowered through the responsibilities and independence that is granted to them in their work.
Empowering a staff gives them the vigor to pursue excellence and to help the organization grow and become a better version as a company. The beauty of empowering is that it does not have to be linked with a title or position. The feeling of being empowered encourages leadership and this fortifies the personal development of all the team players. As a company grows, there will be certain skills that are essential for the daily operations to maintain a steady course on the vision. Encouraging and mentoring support from the leader is essential for growth. Possessing the right skills and be better prepared for any future situation the company will be confronted with.
Delegate
Cascading down from empowerment is the important task of delegation. This is very often a very dreaded situation for many small businesses. To delegate is not easy but it is very essential for growth and also for your own sanity. As your small business evolves the entrepreneur will have more meetings to attend or more business to handle outside the office but the operations has to continue. A common trap is that business owners fall in the trap of micromanaging. It is difficult because to delegate means to trust. It is not easy to trust others to carry out the tasks that you (think) you can do the best in your company. However as a business owner you have to be a leader and having limited capacity means that certain tasks need to be delegated in order to be effective. Delegation has to be efficient of course since there will be room for error created but you need to be able to pick up and go at it again. It is a learning process for everyone in the business but an important skill nevertheless.
As a small business grows, the entrepreneur will need people to take care of different tasks since time will become limited. You do not want to lose focus and therefore great leadership delegates tasks to the team and maintains a clear communication on the way the tasks are executed. Leaders will have to learn to listen to the staff as well since they might notice areas of improvement to help the business, this is also empowering.
Out of good leadership grows more leadership and this will help any business, small or large to continue developing and keep a focus on every aspect of the business lifecycle.