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10 Must Have Traits of Great Business Leaders: Essential Qualities for Small Business Success (Part 1)

Updated: Apr 13

Running a successful small business requires more than just a great idea or relentless hustle—it demands effective leadership. You might be wondering, what makes a successful small business leader? The answer lies in a combination of personal qualities and professional skills that inspire teams, drive growth, and navigate the complexities of entrepreneurship. In this article, we'll explore ten key traits that distinguish exceptional business leaders. For each trait, we'll provide practical steps to help you cultivate these qualities, enhancing both your personal development and your business's success because leadership isn’t something you’re born with. It’s something you build.



"Small business leader inspiring a team with vision and strategy"

Key Takeaways
  • Great business leaders consistently exhibit certain traits across various industries.

  • Emotional intelligence, communication, and decision-making are among the top qualities.

  • Your leadership style directly impacts business growth and team morale.

  • These skills can be developed intentionally over time.

  • Avoiding common leadership pitfalls is crucial for sustained success.


Table of Contents


 

Visionary Thinking

Successful leaders possess a clear vision for their business's future. This vision serves as a roadmap, guiding strategic decisions and inspiring the team. By articulating a compelling mission, leaders can align short-term actions with long-term objectives, ensuring cohesive progress toward overarching goals.


My Visual Brand Identity Service includes your vision and mission statement along with all visual components of your brand.


Action Steps:

Write a One-Sentence Vision Statement

Clarify where you want your business to be in 3–5 years. Make it short, specific, and inspiring—something you can repeat easily and your team can rally behind.

Reverse Engineer Your Vision

Break your big-picture goal into annual, quarterly, and monthly objectives. Ask yourself: “What needs to happen this year to make that future possible?”

Use Vision Casting in Team Meetings

Regularly remind your team where you're headed and how their work contributes to that vision. This creates alignment, motivation, and shared purpose.

Incorporate Visual Planning Tools

Use whiteboards, digital mind maps, or platforms like Canva or Notion to map out your goals and keep the vision visible.

Review and Refresh Your Vision Quarterly

Schedule time every 90 days to revisit your vision statement and update your goals. Markets change, and so does your direction—staying flexible keeps your vision relevant and achievable.


 

Strong Communication Skills

Effective communication is foundational to leadership. It involves conveying ideas clearly, listening actively, and fostering an environment of open dialogue. Strong communicators can articulate their vision, set clear expectations, and provide constructive feedback, all of which enhance team performance and cohesion.


Action Steps:


Practice Clarity Over Complexity

Whether you're giving feedback, writing an email, or sharing company updates, aim for concise, jargon-free communication. Ask yourself: “Could a 12-year-old understand this?”

Establish Weekly Communication Rhythms

Hold a brief weekly team meeting or send out a recap email to keep everyone aligned. Consistent communication builds trust and reduces confusion.

Use Multiple Formats to Reach Your Audience

Don’t rely on one channel. Combine verbal (meetings), written (Slack, email), and visual (dashboards, Loom videos) to ensure your message lands.

Ask Open-Ended Questions Regularly

Communication isn’t just talking—it’s listening. During 1-on-1s or check-ins, ask: “What’s one thing you think we could improve as a team?” This invites dialogue, not just updates.

Document & Share Decisions Publicly

Avoid assumptions or siloed info. When you make decisions—big or small—document the “what” and the “why,” and share it with those affected. This reduces miscommunication and empowers your team.


 

Emotional Intelligence

Emotional intelligence (EI) is the ability to recognize, understand, and manage your own emotions, while also empathizing with others. In leadership, EI facilitates better stress management, enhances relationships, and improves decision-making. Leaders with high EI can navigate complex interpersonal dynamics and foster a positive workplace culture.


Action Steps:


Start With Self-Awareness

Spend 5 minutes each day reflecting on your emotional triggers, reactions, and energy levels. Journaling or using mood-tracking apps like Moodnotes can help you identify patterns over time.

Practice the Pause Before Reacting

When faced with stress, criticism, or conflict, train yourself to pause—even for a few seconds—before responding. This creates space to respond with intention rather than react impulsively.

Use Empathy in Conversations

Before jumping into problem-solving, try asking: “How are you feeling about this?” or “What’s most challenging for you right now?” It shifts the focus from fixing to understanding.

Seek Feedback on Your Leadership Style

Emotional intelligence grows when you invite perspectives. Ask your team anonymously or in 1-on-1s: “How do I show up under stress?” or “What could I do to be a more supportive leader?”

Build Emotional Regulation Habits

Develop go-to strategies for calming your nervous system—deep breathing, stepping outside, short breaks. The more regulated you are, the more emotionally steady your leadership becomes.


 

Accountability & Ownership

Great leaders take responsibility for both successes and failures. By owning their decisions and outcomes, they build trust and set a standard for their team. Demonstrating accountability fosters a culture of integrity and encourages team members to also take ownership of their roles. For additional strategies on fostering accountability, explore Harvard Business Review's insights on encouraging employee accountability.


Action Steps:


Own the Outcome - Good or Bad

Celebrate wins as a team, but also take full responsibility when mistakes happen. Model this by saying things like: “Here’s what I could’ve done differently…” instead of shifting blame.

Set Clear Expectations Upfront

Be specific about goals, roles, and timelines. Ambiguity leads to confusion—and confusion leads to dropped balls. Clarity upfront = accountability later.

Use Public Check-Ins or Progress Boards

Tools like Trello, Asana, or a simple shared Google Sheet can keep progress transparent. When tasks are visible, people are more likely to follow through—including you.

Create a Culture of Constructive Feedback

Encourage feedback loops where it’s safe to call out what’s working—and what’s not. When team members can give and receive feedback without fear, ownership becomes a shared value.

Track & Review Performance Regularly

Use monthly check-ins or KPI reviews to reflect: “Did we do what we said we would do?” If not, dig into the “why”—not to blame, but to adjust.


 

"Team leader taking responsibility during a project review session"

Decision-Making Skills

Effective leaders are adept at making informed decisions promptly. They balance intuition with data analysis, considering both short-term implications and long-term effects. Strong decision-making skills enable leaders to navigate uncertainty and drive their business forward confidently.


Action Steps:


Use the "80/20 Rule" to Prioritize Decisions

Focus on the 20% of decisions that drive 80% of your business outcomes. Not every choice needs hours of analysis—reserve deep thought for high-impact calls.

Adopt a Fast vs. Slow Framework

For low-risk decisions (e.g., design changes), move fast. For high-stakes choices (e.g., partnerships, hiring), take your time. Labeling decisions this way reduces overthinking.

Gather Just Enough Data - Then Decide

Don’t wait for perfect info. Aim to make decisions with 70% of the data. Waiting too long often costs more than a wrong call you can course-correct.

Involve the Right People Early

Bring in key team members or advisors for input, especially if they’ll be impacted by the decision. It increases buy-in and reduces blind spots.

Debrief Major Decisions - Win or Lose

After a launch or pivot, ask: “What worked, what didn’t, and what will we do differently next time?” This builds your decision-making muscle over time.


 

Adaptability

In a constantly evolving business landscape, adaptability is crucial. Leaders who embrace change and remain flexible can pivot strategies effectively in response to market shifts. This trait ensures resilience and the ability to seize new opportunities as they arise.


Action Steps:


Ask "What If?" During Planning

Build flexibility into your strategies by scenario planning. Ask questions like: “What if the market shifts?” or “What if this campaign underperforms?” That way, you’re ready to pivot—not panic.

Set Learning Goals, Not Just Performance Goals

In fast-changing industries, what you learn is just as important as what you earn. Each quarter, pick 1 skill or trend to master—and encourage your team to do the same.

Run Post-Mortems After Every Major Project

After a launch, campaign, or shift, do a quick team debrief: What worked? What didn’t? This creates a culture of reflection and real-time improvement.

Test Small Before You Go Big

Adaptable leaders experiment. Try beta-testing offers, piloting new workflows, or soft-launching products to gauge results before scaling.

Encourage Change-Readiness in Your Team

Normalize change by openly talking about it. Share articles, host “trend spotting” sessions, or celebrate team members who try new things—even if they fail. Adaptability becomes contagious.


 

Resilience & Grit

Resilience enables leaders to persevere through challenges and setbacks. Coupled with grit—the passion and perseverance for long-term goals—resilient leaders maintain focus and motivation, even in the face of adversity. This determination is essential for overcoming obstacles and achieving sustained success.


Action Steps:


Create a Personal "Bounce-Back" Routine

After a setback, give yourself space to reset. Whether it’s journaling, a long walk, or a quiet coffee break—build a recovery habit that grounds you emotionally.

Set Micro-Goals During Tough Seasons

When motivation dips or chaos hits, shrink your goals. Instead of trying to solve everything, ask: “What’s the next best step I can take today?” Small wins rebuild momentum.

Keep a "Wins" Folder or Gratitude Journal

Collect client testimonials, emails, milestones, and wins—big or small. On hard days, revisit it to remind yourself of progress and purpose.

Lean Into a Peer or Mentor Network

Resilience doesn’t mean going it alone. Have 1–2 trusted peers or mentors you can call when things get hard. Sometimes, just talking it through resets your mindset.

Reflect on Past Challenges You've Overcome

Write down 2–3 major obstacles you’ve already pushed through in your business journey. Seeing evidence of your own grit builds confidence for whatever comes next.


 

Empowering Others

Effective leaders recognize the importance of delegating tasks and empowering their team members. By entrusting others with responsibilities, leaders foster professional growth, build trust, and enhance overall team performance. Empowerment involves providing the necessary resources and support while allowing autonomy.


Action Steps:


Delegate Outcomes, Not Just Tasks

Instead of assigning only what needs to be done, share why it matters and let your team own the how. This gives them room to take initiative and build confidence. Learn more about effective delegation techniques in this Forbes article on the importance of delegating effectively.

Give Public Recognition and Credit

Celebrate team wins in meetings, emails, or Slack channels. When people feel seen and valued, they’re more motivated to take ownership and lead in their own ways.

Ask for Input Early and Often

Involve your team in decisions that affect them. Ask: “What would you do?” or “What do you see that I might be missing?” This builds trust and encourages problem-solving.

Create Growth Paths & Learning Opportunities

Help team members identify their strengths and map out how they can grow within your company. Offer training, mentorship, or stretch projects that align with their goals.

Model Letting Go of Control

Empowerment starts at the top. When you trust others to lead—even if they do it differently—you model what leadership looks like. Let your team learn, iterate, and shine.


 

"Leader delegating tasks and encouraging team collaboration"

Integrity & Trustworthiness

Integrity involves adhering to strong moral and ethical principles. Leaders who demonstrate honesty and transparency build trust with their teams, customers, and stakeholders. Trustworthy leaders create a reliable and ethical business environment, which is fundamental for long-term success.


Action Steps:


Align Words with Action

If you make a commitment, follow through—even if it means taking the harder road.

Be Transparent

Be transparent with your team and customers, especially in moments of uncertainty or challenge.

Admit Mistakes

Admit mistakes openly and take responsibility—this builds respect faster than pretending to have all the answers.

Follow Through on Promises - Big or Small

Whether it’s a client deadline or a weekly team meeting you committed to, showing up consistently proves you're reliable. Trust is built not by grand gestures, but by small, consistent actions over time.

Make Ethics Non-Negotiable

Establish a code of conduct or core values for your business. Hold yourself and your team accountable to these standards in every decision—hiring, partnerships, sales, and service.

When your team and customers know they can rely on your word, your brand becomes a reflection of that trust. In today’s world, where reputation spreads online instantly, integrity isn’t just a trait—it’s a strategic advantage.


 

Strategic Thinking

Great leaders don't just respond to what's happening now—they think three, six, or even twelve months ahead. Strategic thinking means you’re connecting the dots between your mission, goals, and daily execution.


Whether you're scaling, pivoting, or stabilizing, having a clear strategy helps you:

  • Avoid reactive decisions

  • Allocate resources more efficiently

  • Keep your team aligned and focused


Action Steps:


Use SMART Goals

(Specific, Measurable, Achievable, Relevant, Time-bound) to bridge strategy and action.

Block Monthly Time for Strategic Thinking

Schedule a recurring 1–2 hour “strategy session” each month. Use this time to review key metrics, reflect on progress, and re-align your short-term actions with your long-term goals.

Use the "Vision 👉 Goals 👉Actions" Framework

Start with your big-picture vision, set 1–3 strategic goals to support it, and then outline specific weekly or monthly actions that push those goals forward.

Apply the SWOT Analysis Quarterly

Analyze your business’s Strengths, Weaknesses, Opportunities, and Threats to make informed, strategic decisions that anticipate change rather than just react to it.

Ask "What's the Impact?" Before Acting

Before making a move—hiring, launching, or changing systems—pause and ask: “Will this move us closer to our mission?” Strategic thinkers don’t just ask “Can we?”—they ask “Should we?”

Review Your Strategy with Someone Outside Your Bubble

Share your plans with a mentor, coach, or advisor who isn’t emotionally attached to your business. Fresh eyes often reveal blind spots and opportunities you can’t see alone.

Strategic thinking doesn’t mean over-planning—it means clarity of vision paired with flexibility in tactics.


For more information and access to leadership tips and advice, I like Harvard Business Review’s Leadership Category. But don’t forget to check back next week for Part 2 or sign up to have all blog posts sent straight to your email. I will be adding a leadership reflection workbook at that time.

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