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5 Essentials of Good Leadership | Entrepreneur

by Brand Post
November 28, 2024
in Business
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5 Essentials of Good Leadership | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.

What makes a good leader?

Ask any entrepreneur, and you’re likely to get different (albeit, pretty similar) answers. You might have heard that a good leader is strong, decisive, confident and honest. Or perhaps a “good” leader to you is optimistic, creative and forward-thinking.

After over 20 years as a CEO, I can tell you, my definition of “leader” has evolved over time. Facing challenges, resolving personnel conflicts, making mistakes and overcoming burnout will do that to you. So, while I don’t claim to have the textbook definition of leadership, I can share what I consider to be the essentials when it comes to being a positive, compassionate leader. And I’ve learned that entrepreneurial leadership crosses every sector of business.

Related: 50 Rules for Being a Great Leader

1. Set intentional habits

A leader is someone who is intentional with their habits. Whether you’re part of the “rise and grind” crowd or prefer a more leisurely pace, you’ve given thought to how you manage your day, your health and your business.

As an entrepreneur, my routine is everything — not because I require regimented time blocks, but because, if I didn’t set priorities, what’s important to me would go by the wayside. By setting intentional habits, I know I’ve created time for my physical health, mental health, family and leisure, in addition to the responsibilities of my business.

Without intention, we are at risk of falling victim to bad habits. Distraction and avoidance become our downfall. A great leader knows their priorities, directs energy to the activities likely to have the greatest impact and manages their time, not the other way around.

2. Practice radical honesty

I first learned about radical honesty in Brad Blanton’s book. And at the start, I really struggled with it. I realized how often I used “little white lie” excuses to ease my discomfort and avoid conflict. But this wasn’t doing me or my team any favors.

Through practice, I learned that radical honesty is about prioritizing transparency even when it’s uncomfortable. This doesn’t mean being brutally honest (you can tell the truth without hurting others), but keeping with open communication and vulnerability. Radical honesty leads to better conflict resolution and further refinement of your character as a leader. It also builds trust with your team.

Many business owners believe that you need to be direct or even harsh to be effective. In reality, a great leader speaks the truth with compassion, while seeking to understand the perspectives of those around them. To me, radical honesty is essential if you want to resolve conflict the right way, not the easy way.

Related: Stop Lying to Your Team — And Yourself. Try Radical Honesty Instead.

3. Generosity over personal gain

As business owners, many of us are drawn by the appeal of financial gain. And while this is not inherently bad, setting your tunnel vision on profit alone can make you blind to the more personally lucrative and soul-giving opportunities.

I truly believe that what you give is returned to you in dividends, not always as financial rewards but as personal development, friendships and life experiences. A great leader understands that generosity is more important and impactful than financial earnings alone.

Give to your community, your team, your friends and your family. Whether that’s through service, donations, sharing knowledge or providing career advancement, you’ll feel a stronger sense of purpose than being a profit-first entrepreneur.

4. Tackle challenges with compassion

A leader is someone who does not shy away from challenges. At the same time, a leader does not tackle challenges with aggressive tenacity, but a compassionate, thoughtful approach that considers multiple factors and points of view. Resolving conflicts in this way is difficult, but that is the measure of an intentional, self-aware leader.

For one, a great leader does not bulldoze other people’s perspectives. They take the time to listen to input, consider the information and proceed with what’s right for the organization as a whole. Sometimes, it means knowing when to say “no” — even to yourself.

At the same time, a leader does not beat themselves up for past failures. They consider each challenge to be an opportunity to learn, overcome and grow. It’s much more productive to channel optimistic energy into furniture endeavors than to fixate on the past.

Leadership means having compassion for others and yourself, even when making decisions is difficult and mistakes are inevitable.

Related: 5 Common Personnel Problems and How to Address Them

5. Know your limits

A leader is not infallible. You have skills, but you also have limits. A great leader can recognize the aptitudes in others and know when to step away from activities that no longer serve them.

This does not mean delegating just for the sake of lightening your workload but knowing your limits and identifying your complement in others. Very often, there are people in your mindset ready and able to step up and prove their chops.

As a CEO, I needed to find my “no person.” This is the person who tells me when I’ve gotten in my own way and when it’s time to assign responsibility to more equipped team members. He prevents me from getting pulled into the weeds rather than focusing on the priorities that matter most for my company at a high level.

A leader knows what they’re good at, what they’re not so good at and when it’s time to allow space for others to step in.

Every leader is different. And while the essentials of honesty, integrity and team management come into play, the exact skills will vary from one person to the next. I encourage every entrepreneur to explore their leadership style and define their own “essentials” — the non-negotiables, if you will. Recognize that these may shift over time, but leading with intention is always the path forward to maximizing your impact.



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Tags: Business LeadersCEOsEmployee Experience & RecruitingentrepreneurEssentialsGoodGrowing a BusinessLeadershipLeadership QualitiesLeadership SkillsManagement

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