As a business owner, your leadership style sets the tone for your company culture, employee morale, and ultimately your success. Some leaders lean toward an authoritarian approach—my way or the highway—while others avoid leading altogether, trying instead to be everyone’s friend. Neither of these extremes typically result in strong or sustainable leadership.
In this blog, we’ll take a look at six effective leadership styles that can help you build a healthier business and a stronger team.
Servant Leaders: Leading with Empathy
Servant leaders put the needs of others ahead of their own. A defining trait of this leadership style is the intentional consideration of how business decisions affect employees. Policies are designed to improve—not complicate—the lives of those who work for them.
A small business owner who embraces servant leadership strives to grow both the company and the people within it. He works to balance the needs of the business with the family lives of his employees, cultivating loyalty and a strong team culture.
Servant leaders are characterized by:
- Empathy and understanding
- Selflessness in decision-making
- A focus on empowering employees
Transformational Leaders: Inspiring Growth and Innovation
A transformational leader seeks to improve and evolve the business. This often includes changing the workplace culture, streamlining processes, or introducing innovation. These leaders share their vision with their team and motivate them to work toward it.
A small business owner with a transformational mindset listens to employees and values their input. He encourages adaptability and embraces change as a path to improvement.
Transformational leaders are characterized by:
- A compelling vision for the future
- Motivation and inspiration
- A willingness to lead through change
Hands-On Leaders: Leading by Example
Hands-on leaders work closely with their employees and understand the day-to-day operations of the business. This leadership style is especially common (and often necessary) in the early stages of a company.
A hands-on owner models a strong work ethic and sets the standard for professionalism, service, and dedication.
Hands-on leaders are characterized by:
- Deep operational knowledge
- High involvement in daily tasks
- Strong modeling of company values
Results-Oriented Leaders: Focused on the Bottom Line
Results-oriented leaders are driven by clear goals—such as hitting sales targets or maintaining profit margins. These leaders value data, use measurable benchmarks to evaluate performance, and hold employees accountable.
They are highly effective at creating systems that lead to tangible success. Everyone on the team knows what is expected and how they contribute to the bigger picture.
Results-oriented leaders are characterized by:
- Clear performance goals and expectations
- Regular feedback and evaluation
- Recognition of high achievers
Adaptive Leaders: Thriving Through Change
Adaptive leaders are flexible and responsive to shifting business environments. They stay informed about industry trends, pivot when needed, and encourage feedback from employees.
An adaptive leader views change not as a disruption but as an opportunity for innovation. He learns from failures and stays focused on long-term goals.
Adaptive leaders are characterized by:
- Responsiveness to change and feedback
- Strategic decision-making
- A willingness to evolve with the market
Coaching Leaders: Mentoring for Growth
A coaching leader sees employees not just as workers but as people with potential. This leadership style focuses on developing individual strengths and long-term growth.
A business owner who leads this way invests time in understanding his team. He provides thoughtful feedback, encourages problem-solving, and builds strong relationships based on trust.
Coaching leaders are characterized by:
- Prioritizing employee development
- Constructive, two-way feedback
- Trust-building and mentoring
Which Style Fits You?
Each of these leadership styles can be effective—but not every style will feel natural to every business owner. If you’re naturally task-oriented, you may gravitate toward being a results-oriented leader. If you’re more people-focused, servant, coaching, transformational, or hands-on leadership may feel more authentic. Adaptive leaders often strike a balance between both.
Want help identifying your natural leadership strengths? Try one of these free personality assessments:
- DISC Personality Assessment: Focuses on whether you’re more task- or people-oriented.
https://discpersonalitytesting.com/free-disc-test - Myers-Briggs Type Indicator: Offers deeper insights into your leadership and decision-making style.
https://www.16personalities.com/free-personality-test
Each test takes about ten minutes and can provide valuable insight to help you lead more confidently and effectively.
Coming up next: In my next blog, we’ll discuss how different generations of employees respond to different leadership styles—and how you can adjust your approach to lead them well.
Susan's Reflections 