5 Questions to Ask Yourself

Don’t tell people how to do things, tell them what to do and let them surprise you with their results. – George S. Patton

There’s nothing more demoralizing than a leader who can’t clearly articulate why we’re doing what we’re doing. – James Kouzes and Barry Posner

Leadership involves finding a parade and getting in front of it. – John Naisbitt

Small business owners are, by default, managers. And if they have employees, they better be good leaders as well. Leaders, by definition, are able to steer an organization and its resources to success. Are you a good leader? Ask yourself the following five questions to determine whether or not your business has a good leader at its helm:

1. Is your business headed in the right direction?
The best sign that you are a good leader is when your business is headed in the right direction, headed being the operative word. While your business may not have yet achieved perfection, it’s important that it be improving by the month. If not, you should reevaluate your current financial situation and see where you must shift your attention in order to see more profitability and growth.

2. Do you regularly research industry trends?
It’s important that you know what’s happening in your industry. If you become too busy to follow current tax trends and keep up with the every-changing tax law, you’ll not only be ill-informed, but you’re most likely to be out of work very soon. Small businesses that have a lead on the competition are generally run by individuals who know where their industry is headed and have incorporated those trends that will help them remain on top.

3. Are you enthusiastic, sharing your vision with clients and employees?
Employees are inspired by leaders with a clear vision. Do you have a vision? If not, you must create one, and soon. If so, you must practice sharing it with employees and clients. Your ability to transmit your enthusiasm to those with whom you associate will do wonders for your business. Enthusiasm is contagious, and the sooner it starts catching at you business, the better.

4. Do you communicate clearly and succinctly?
Your ability to communicate well will often evidence itself in your employees’ actions. If they are following your directions and fulfilling your requests without incident, chances are you’re communicating clearly, in a manner that is well understood by those who work for you. If not, chances are you’re not being as straightforward and clear and you might like. Good leaders are also good communicators who can articulate their messages without extreme effort.

5. Are your employees proactive and independent?
Good leaders hire and train employees that don’t require much oversight. Not only that, if you lead by example you’ll find that your staff desires to work independently, fulfilling their job requirements in such a way that your vision will be quickly realized. If you find yourself continually micromanaging your employees, you need to change your approach. Perhaps they need more training or encouragement to magnify their responsibilities.

Good leadership takes time. If you find yourself answering negatively to any of the above questions, try working on one component at a time in order to improve your leadership skills.

Author's Bio: 

Allen B. Bostrom, CPA, is President and CEO of Universal Accounting Center based in Salt Lake City, UT. He has over 30 years experience with businesses of all sizes and has taught over 25,000 people different aspects of Accounting and Business Management. He has authored countless business management articles for publication and distribution. His weekly e-zine goes to 20,000 readers.