Category: Business Leadership

Effective Leadership Styles: Which One Fits You Best?

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:

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.

Who’s in Charge When You’re Away?: Identifying a Trusted Leader

In my last blog, I shared how important it is to develop one or more employees who can manage the business while you’re away. Whether you call them a lead employee, acting manager, or person in charge, choosing the right person matters.

When you’re away from the business, you want someone who will represent you well—someone you trust to protect and even enhance the reputation you’ve worked hard to build. That’s why I want to walk you through what I’ve learned over the years about identifying potential leaders in your workplace.

The best lead employees are reliable, trustworthy, knowledgeable, and respectful. These are the people who will give you peace of mind when you take time off—whether it’s for a vacation, family need, or just a day to recharge.

What to Look for in a Lead Employee

✅ Someone Who Is Reliable

When you’re not around, you need someone who consistently follows through and doesn’t require reminders. A reliable employee:

  • Is on time and dependable
  • Gives notice when they need to change their schedule
  • Follows your policies and procedures
  • Completes tasks correctly and on time
  • Can be trusted with tasks like ordering supplies or making bank deposits
  • Keeps their commitments and doesn’t make excuses

✅ Someone You Can Trust

You need someone who will do the right thing—even when no one’s watching. A trustworthy employee:

  • Works well without constant oversight
  • Is honest and transparent
  • Makes decisions with integrity
  • Admits mistakes and works to correct them
  • Respects your business and protects its value
  • Puts the company’s best interests first when you’re not there

✅ Someone Who Knows the Business

A qualified leader understands how the business works and how you want things done. A knowledgeable employee:

  • Understands day-to-day operations
  • Supports your business goals and works to achieve them
  • Can confidently explain products and services to customers
  • Exercises good judgment in difficult or unusual situations
  • Anticipates how you would respond and acts accordingly
  • Brings you thoughtful ideas for improvement

✅ Someone Who Is Respectful

Your lead employee should treat others with professionalism and kindness. A respectful employee:

  • Shows courtesy to customers and coworkers
  • Listens well and communicates clearly
  • Considers all perspectives before making decisions
  • Offers praise in public and correction in private
  • Maintains composure when tensions rise
  • Recognizes and appreciates their team members

Leadership Benefits Everyone

If you select and train the right people, you’ll be able to step away from your business knowing it’s in capable hands. Not only will you enjoy peace of mind and time to rest, but your lead employees will grow in their own confidence, responsibility, and job satisfaction.

Paul reminds us in Scripture,
“Now it is required that those who have been given a trust must prove faithful.” – 1 Corinthians 4:2 (NIV)

Developing trustworthy leaders within your business is one of the best investments you can make—not just for your time off, but for the future of your company.