Making money is the main goal of most businesses. Sure, there are other goals. Many entrepreneurs want to change the world, or solve a big problem. But it would be naive to think that the main driving force isn’t usually making a profit. After all there are usually investors to keep happy, and people to pay. A business doesn’t run on enthusiasm.
However, it is interesting to note that often those leaders who pay most attention to money, are those who struggle to make it. If you’re focusing on your bottom line more than your people, you might be costing yourself money in the long run. A third of all employee turnover is related to bad leadership. The cost of constantly retraining and rehiring could be crippling. Add to that the fact that it’s usually the top 10% who jump ship, and you have a recipe for disaster.
As an entrepreneur, you need to start developing relationships with your people today. Schedule time to talk to your employees, and really get to understand their strengths, goals, and challenges. When you relate to everyone you employ, you start to see the real value in your business.
Encourage open communication and an ‘open door’ approach to management. This will improve not just your relationships with your people, but also your own understanding of the daily running of your company. Aloof business owners generate mistrust and lower morale among employees, directly harming your bottom line.
Always be prepared to adjust your management style on a person-to-person basis if it isn’t working well. What works for one person may not work for another. For example, some people just need to be told what to do and then left to it. Others need regular feedback and management. Others work better when a manager gets involved and helps them to learn the project personally.
Regardless of how you approach it, managing your people better will be an indirect boost to every other aspect of your business.