Know Your Business Style
Look closely at the issues involved in leading and managing a small business.

Why You Started in the First Place
While there are a lot of reasons not to start your own business, the advantages of business ownership far outweigh the risks:

• You get to be your own boss.
• Hard work and long hours directly benefit you, rather than increasing profits for someone.
• Earning and growth potential are far less limited.
• A new venture is exciting.
• Running a business will provide endless variety, challenge and opportunities to learn.

But, as the owner of any business, your leadership and management style must be taken into consideration, because it will dictate the course of the business.

Leading vs. Managing
They're altogether two different approaches! Are you a manager or a leader? Although you may hear these terms used interchangeably, they are very different, but, one isn't necessarily better than the other. The best case scenario is to be the sum of both parts, realizing that one or the other is more dominant.

By learning whether you are more of a leader or more of a manager, you will gain the insight and self-confidence that comes with knowing more about yourself. The result means greater impact and effectiveness when running your business.

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Development of Leadership
It is important to remember that there are definite strengths and weaknesses of both types of individuals. Managers are very good at maintaining the status quo and adding stability and order to our culture. However, they may not be as good at instigating change and envisioning the future.

On the other hand, leaders are very good at stirring people's emotions, raising their expectations, and taking them in new directions (both good and bad). However, like artists and other gifted people, leaders often suffer from neuroses and have a tendency toward self-absorption and preoccupation.

Do What Comes Natural
If you are planning on owning your own business, you must develop management skills, whether they come naturally or not. However, what do you do if you believe you are, in fact, a potential leader? What can you do to develop as a leader? Throughout history, it has been shown that in order to reach their full potential, leaders have relied on strong one-to-one relationships with teachers whose strengths lie in coaching and cultivating talent.

If you think you are a leader at heart, find a mentor.
Someone you admire. Someone who you can connect with and who can help you develop your natural talents and interests. If you can't locate a mentor, read books about successful people and strategies and model after them. Either way, you'll find that you will grow in many ways.

Stage 4: Write Your Business Plan >

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