Why Business Owners are NOT Instant Leaders

man in suit with thumb up sign

Photo by Lukas

Just because you’re the owner of the business, doesn’t automatically make you a great leader, or a manager. There’s a whole lot more you need to develop! Ready to transform your leadership skills game? Let’s dive in!

This may come across harshly, but just because you’re the owner of the business, doesn’t automatically make you a great leader, or a manager.  

If you’re scratching your head, you’re not alone! 

The line between these roles can blur, but understanding the difference is crucial for driving your business to success and helping you step into your role as a Leader. 

So, what’s the difference between managing and leading? 

While both are essential for organisational success, they involve different approaches and skills which, once developed, can be foundational to an organisation’s success.

In this article, we will explore what sets managers and leaders apart and why balancing both is key to effective team performance.

Building your own power team? Find the perfect Champion fit for your business and your goals, or speak to our Growth Strategist today!

Leading VS. Managing – What’s the Difference?

To draw the line, let’s define what management and leadership is.

man using laptop thinking

What is Management?

Simply put, management is all about organisation and coordination. 

This means that managers are focused on setting, measuring, and achieving goals by managing situations to reach or exceed their objectives. 

The tasks are technical, involving planning, budgeting, staffing, and problem-solving. 

Essentially, a good manager is task-oriented and process-driven.

As business owners, this is very important, right?

We’d say that many business owners begin with this quality — the need to ensure that your day-to-day operations run smoothly and efficiently. 

What is Leadership?

Leadership, on the other hand, is about inspiring and motivating people. 

Leaders are visionaries who create a compelling future that others want to follow. 

The unique thing about it is that you don’t have to be up in the ladder to be a leader. You don’t even need a title – it is not based on the hierarchy of the organisation. 

Good leaders have a quality that allows them to influence and guide individuals and teams to achieve that vision by encouraging innovation, fostering collaboration, and building strong relationships.

In short, leadership is people-oriented and it relies on emotional intelligence to connect with and inspire team members.

Related read: Collective Triumph: Nurturing and Empowering Your Team Members

Leadership VS Management at a Glance

Here’s a quick comparison to help you envision the fine line between management and leadership skills. 

leadership vs management table comparison

Need help in finding the perfect fit team members for your business? Speak with our Growth Specialist today and be paired with one of our Champions!

Why Should You Maintain a Balance of Management and Leadership Skills?

team meeting looking at the laptop

Photo by Fox

However, we sometimes tend to lean more on one side than the other.

If you’re striving to be a great manager, you might find yourself stressing heavily on your SOPs and organisation, overlooking the fact that you are working with human beings.

Focusing too much on managerial aspects like reaching goals and quotas can lead to a cold, burned out relationship with work, your team, and with yourself. 

On the flipside, just focusing on inspiring people without the right push to the goals won’t be very productive too. 

It can lead to disparaged, disorganised and missed out processes, which can cost the business too much in the long run. 

So, why should you, as a business owner, aim to develop the right balance between managing and leading?

The first reason is, of course, to keep your team happy in their work. When your team members feel that they are guided, valued, and heard, their productivity increases and your goals are achieved.

Second is that with the right balance of managing and leading, you can make more sensible choices for the business, knowing that the technical and the emotional aspects of being a business owner are thoroughly studied and considered.

Imagine an organisation that has its goals, tasks, systems, and processes solidly in place, running smoothly, and each team member is motivated and inspired to roll up their sleeves everyday because their voice is heard in each meeting.

Or an organisation that uses data analysis, policies and procedures while also taking calculated risks and making bold moves that can drive significant progress and innovation for the business.

That’s the ideal one!

A workplace where team members can grow and flourish, without micromanagement or fear, because everyone practices accountability in their roles.

But of course, it’s not done in a snap of your fingers. Nope, no instant skills here!

It happens as you actively practice and aim to change for the better with each experience you face.

When you learn how to practice both management and leadership skills, you create a healthy work environment for your team members and the business itself. 

You’ll know where to steer the wheel into the road to success.

Case Study: Leadership Impact on a Champion’s and Business’ Growth

So, how does this look in action? Let Dina help you paint the picture for you.

Dina, one of our fantastic Champions for a few years now, loves her role with her client, a property developer, and her experience at The Growth Hub. 

As a property Champion, her tasks include researching off-market properties, conducting deep dive analysis, and preparing these properties for marketing on her client’s website.

Those have nitty-gritty details, which make them both challenging and rewarding!

But because she’s surrounded with supportive people – those who have the right balance of management and leadership skills – she was able to enjoy her work and be productive at the same time.

Dina appreciates the balance of freedom and responsibility she has, which allows her to achieve not just work-life balance, but work-life harmony!

Watch her full story here:

In Dina’s point of view, it is the positive and supportive work culture at TGH that plays a big part of this, with training and development opportunities that help her excel in her tasks. 

“REAL-ationships” and accountability? Those are her favorite work values as she works with her client and with TGH.

These values mirror both the exceptional management and leadership skills of the organisation she is in.

Lead and Manage Your Team Effectively!

man with his team working on computers

So, if you want to grow your business and your team, it’s high time to develop both management and leadership skills.

Get your tasks, processes, and systems in place so that everything in your business runs smoothly and your efficiency is increased.

Hint: our Grow With the Flow program can help you with that!

Then be sure to help your team members hit those goals and progress by inspiring them with the vision of the future. 

And don’t forget to strengthen relationships as colleagues too. Trust is big in building relationships, and that’s where the growth begins!

As a successful business owner, remember that you’re not just looking after the numbers, you’re also looking after the people.

It’s this blend of skills that sets the stage for long-term success.

If you’re ready to build your own team and begin to develop these fantastic management and leadership skills we mentioned, let’s connect!

Our Growth Strategist can help you find the right person for your business and begin building your team.

Book a free 15-20-minute call with our Growth Strategist today and let the growth begin!