5 Leadership Skills The Best Entrepreneurs Follow

What Type of Entrepreneur Are You?

Before diving headfirst into your next big entrepreneurial endeavor, take a moment to ask yourself a crucial question: What kind of entrepreneur are you?

At first, this might not seem like a critical question, especially if you’re in the early stages of a startup. However, as someone who assists entrepreneurs in turning their visions into reality, I’ve observed that understanding your entrepreneurial style can provide valuable insights into your strengths, limitations, and how to nurture and overcome them. Whether you’re aiming to capitalize on disruptive opportunities or create a sustainable enterprise for the long term, this question demands your attention.

The Two Types of Entrepreneurs

In my experience, business leaders tend to fall into one of two categories at a higher level.

1. Status Entrepreneurs: These entrepreneurs are primarily driven by external or revenue-focused goals. In the early stages of a company’s lifecycle, this drive can lead to quick success. However, status entrepreneurs may face challenges with stagnation over time, and breaking out of this mindset becomes essential for sustained growth and evolution.

2. Freedom Entrepreneurs: On the other hand, freedom entrepreneurs are not primarily driven by external forces or a grand vision to fulfill. Their motivation comes from pushing their abilities to the next level, learning quickly, and mastering relevant skills that lead to a promising future. They continuously strive to accomplish new things and are focused on iterating, creating something better, faster, and cheaper.

Embracing Freedom Entrepreneurship

While both types have their benefits in the early stages, it becomes more challenging to balance status-driven goals as a business matures. The goal of this article is not to criticize any entrepreneurial type but rather to help leaders recognize their drive and find ways to evolve. Let’s explore five essential leadership skills of effective freedom entrepreneurs:

1. Simplify and Streamline

Simplifying an organization is a crucial skill for leaders. As Steve Jobs famously recognized, as a company grows, so does its complexity and the number of people relying on its management. To avoid feeling overwhelmed and overburdened, it’s critical to confront complexity head-on and simplify initiatives at the earliest opportunity. This approach leads to more informed decisions and enables leaders to guide their teams with greater confidence and clarity.

2. Always Look Ahead

Forecasting is a vital skill for staying on the cutting edge or keeping up with the market. Failing to predict market trends can result in significant challenges for a company. To lead effectively, it is essential to anticipate both short-term and long-term developments. You don’t need to be clairvoyant to make savvy forecasts; instead, actively seek out diverse opinions and news within your industry. This breadth of information will help you form your own well-informed predictions.

3. Delegate Wisely

Being an effective leader does not mean doing everything yourself. It’s crucial to know your strengths and focus on what you do best while delegating other tasks to capable team members. Research has shown that CEOs with high delegation abilities experienced significantly higher three-year growth rates compared to those with lower delegation skills. Delegate to employees who enjoy handling tasks that you don’t, allowing you to focus on your strengths and enjoy the process of driving success.

4. Systematize Operations

Creating repeatable processes and structures can transform your organization. Automating tasks can free up time for innovation, growth, and providing exceptional customer service. Burnout is a significant challenge for many workers, with a shocking 79% reporting experiencing burnout at any given moment. By implementing repeatable systems and automating processes, you can create a more sustainable work environment for yourself and your team, leading to increased engagement and productivity.

5. Embrace Structure

Rigorously blueprinting your organization and being open to revamping it if necessary is critical. The right people in the right positions are essential for achieving goals and effectively working with teams. Carefully consider the business you want to create and the impact you desire. Determine what organizational structure aligns with that vision and identify the skills required to fulfill it. Look at similar enterprises for inspiration and tailor the structure to suit your unique needs.

Embrace Your Entrepreneurial Potential

The real question isn’t about the type of entrepreneur you are, but rather about what kind you could be. By honing your leadership abilities, you can develop both the skillset and mindset to reach new levels of success. Embrace these essential leadership skills, set clear-cut goals, and surround yourself with good people to ensure that your business runs smoothly and is ready for whatever the future holds.