3 Reasons Why Leadership is So Vital for Every Entrepreneur

Zachary Young

, Leadership

3 Mins Read

If you have been following our posts, you would have noticed we stressed quite a bit on the topic of leadership in business.

This is because for any startup to succeed and grow, it would always require an excellent team (with super hires). And no great team can be complete without a leader.

Below are 3 main reasons why mastering the art of leadership is also vital for every entrepreneur:

1) You Can Only Employ the Talents You Can Lead

Photo Credit: magazine.startus.cc

If you want to employ big talents, you need to have great leadership. Good talents don’t stick around lousy leaders for long. Why should they?

Their talents would be wasted, underutilized and unappreciated.

In his bestselling book “The 21 Irrefutable Laws of Leadership”, leadership guru John C Maxwell talks about the law of respect.

“… people naturally follow leaders stronger than themselves. That’s how the Law of Respect works. People who are an 8 in leadership don’t look for a 6 to follow – they naturally follow a 9 or 10. The less skilled follow the more highly skilled and gifted.”

Fortunately, the reverse is true. Great leadership attracts talent.

I have heard countless stories about how people would willingly choose take a drastic pay cut or even go on no paid leave just to be mentored or work under these great leaders!

Case in point: It was great leadership that made John Sculley leave his position of CEO in Pepsi-Cola for a 4 year old company set up in a garage – Apple Inc.

“Do you want to sell sugar water for the rest of your life?
Or do you want to come with me and change the world?”

– Steve Jobs’ legendary pitch to lure John Sculley over to Apple Computer, Inc.

Hence if you want to have a strong team, you have got to work on your leadership!

There is simply no other way. You might be able to attract talents to work for you in the short run, but none of them would stay in the long run.

2) Your Leadership Determines Your Company’s Altitude

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Leadership determines the difference between a company that’s going surging forward and a company that is stagnant.

Are you charting a course in the ocean or being tossed around by the waves?

There is not a single bit of exaggeration in saying that profits, working environment and team building are all determined by leadership.

Strong leadership is needed to guide companies through tough times. You would notice that companies with weak leadership collapses when they experience testing times and recessions.

This is because a strong leader is required to make tough calls and unpopular decisions to keep the company afloat.

Are you strong enough to make unpopular decisions and yet retain the respect of your employees?

3) Great Leaders Grow Their Companies; Bad Leaders Kill It

Photo Credit: www.contentlead.com

Great leaders aren’t afraid to empower their people with authority, take time out to train their employees with new skills or inspiring them every once in a while with the vision of the company.

They understand that people are their greatest asset and he invest majority of his resources into his people. The leader that grows his people inevitably grows his company.

Conversely, bad leaders kill their companies with their insecurity, credit stealing and greed for personal gain.

They micro-manage their people’s work, not making room for any form of improvements other than their own.

Poor leaders are reluctant to send their employees for training, fearing that they would leave for their competitors.

Their insecurity causes them to steal credit from their own employees or discredit ideas just make themselves look like the smartest person in the room.

Such leaders effectively kill their company at the expense of their ego. Clearly, no one will stay long in such environments.

Luckily for all of us, leadership is not just an inherent characteristic but a skill.

And just like every other skill, it is one that you can pick up and learn. With frequent practice and constant feedback, even you can be developed into a great leader and lead wherever you are.

Featured Image Credits: bookboon.com

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