You’re about to start your business, so you’ve been preparing your logo, products, services, business bank account, and marketing strategy. No matter how prepared you think you might be, I want to remind you of this key element of entrepreneurship: leadership styles.
Your business will only grow so far until you have to come face-to-face with the kind of leader you are. This guide will help you understand seven core leadership styles and how to get the most out of your unique style.
Is Every Business Owner a Leader?
Yes, every business owner is a leader because you are making something out of nothing. You are contributing your unique answer or solution to a problem that exists among your ideal audience.
To make your business ideas come to life, you have to be the one to take initiative. After all, you are your own boss. In order to run a successful business over time, you must take the lead on your creative ideas, schedule, and overall lifestyle.
Incorporating your leadership style into the way you run your business is about leveraging your strengths and strategically utilizing your natural characteristics and interests.
Do I Need to Be a Good Leader if I Don’t Have Employees?
Absolutely! Even business owners without employees must be proactive leaders.
Even if you are your own boss, and you don’t have employees, you can’t avoid working with other people. Understanding yourself helps you communicate with others, whether it’s a client, freelancer, or industry peer.
Let’s look at the seven common leadership styles.
7 Leadership Styles to Help Grow Your Business
There are many ways to describe leadership, but these are seven popular leadership categories:
- Transformational
- Coaching
- Autocratic
- Pacesetting
- Democratic
- Affiliative
- Delegative
These seven leadership styles have been used to train management and executive teams across many industries. But they can also be used for individual growth and personal development as you build your business.
Transformational Leadership
Transformational leaders are known as encouragers. They empower their team members to push past their comfort zones to bring precision and excellence to their work.
As an entrepreneur, you might be a transformational leader if you continually find ways to motivate yourself to do better.
Coaching Leadership
Coaching leaders focus on an individual’s qualities in order to motivate them and improve their weaknesses.
If you possess the coaching leadership style, perhaps you find yourself journaling and checking in with yourself so you can eliminate habits that don’t support the vision you have for your business.
Autocratic Leadership
Autocratic leaders take on the responsibility of making decisions, rather than relying on their employees or those receiving their leadership.
As an entrepreneur, you might be an autocratic leader if you like to set strong personal and professional boundaries according to proven systems. Another sign is you don’t tend to get distracted by others’ suggestions or opinions of how you should run your business.
Pacesetting Leadership
Pacesetting leaders consider themselves a part of the team, so they practice what they preach.
As you’re starting your business, you might realize you have the pacesetting leadership style if you expect your clients or peers to perform at your same skill level or energy level.
Democratic Leadership
As opposed to autocratic leaders, democratic leaders refer to the opinions and systems of others before making the final call.
You might be a democratic leader if you spend lots of time consulting with family, friends, and colleagues before finalizing your business plan.
Affiliative Leadership
Affiliative leaders place most of the decision-making power on the people receiving their leadership.
As a business owner, you might have the affiliative leadership style if you rely on coaches or peers to take the lead on your project planning and goal setting.
Delegative Leadership
Delegative leaders know how to share the workload among team members while keeping track of everyone’s performance.
Your leadership style might be delegative if you outsource parts of your business to freelancers or agencies so you can free up your schedule for other CEO-related projects.
What Is the Best Leadership Style for Business Owners?
The truth is there is no single best leadership style.
For example, my style of leadership is a combination of transformational and coaching. This works well for mentees who are looking for encouragement, habit creation, and skill development, as they’re starting their businesses.
Leaders v. Managers
Be careful not to mistake leaders for managers. Just because someone has the title of “manager” does not necessarily mean they have invested in becoming the best leader they can be.
Any of the seven types of leaders we discussed are able to motivate themselves and others through empowerment. On the other hand, some managers fall into the micromanaging category.
Someone who micromanages their team members or colleagues tends to have weaker boundaries than someone who’s considered a manager.
Other than that distinction, the effectiveness of your leadership style depends on your relationship with yourself and those receiving your leadership.
The more I understand the type of leader I am, the better I can promote myself as a business mentor for a specific type of woman.
Warning: When you further connect with your unique leadership style, you may find yourself misunderstood by others. Those around you may even start to feel intimidated by you.
Why Are People Intimidated by Leaders?
There are many reasons why people might feel resistant when you start embodying the true leader that you are.
Leaders can be intimidating because they:
- Keep you accountable
- Present ideas that you’re not used to
- Embrace failure in order to reach success
- Can accelerate your growth personally and professionally
Let’s face it – change is scary, even when it’s a positive change. In my opinion, when you feel intimidated, that’s a good sign that you could benefit from working with a mentor.
Wrap-Up: Leadership Styles
When you look back at all the times you’ve been led by another person, you may favor one leadership style over the others. Remember – there is no best leadership style, but becoming familiar with the different styles will help you step into your role as a business owner.
My unique style is a cross between transformational and coaching. If this appeals to you, I have a great opportunity for you to receive 1-on-1 mentorship.
- Starter Pack: 1 month of weekly 1-hour sessions
- Dedication Package: 3 months of weekly 1-hour sessions
I hope you’ll consider joining my mentorship program so you can embody the leadership-minded entrepreneur that you are!
Further Reading on ValueCreationProject.com: If you’re interested in becoming a better leader for yourself and others, then take a look at the importance of taking notes.
