The success of a single-member LLC does not end after the formal registration with the state. As a business owner, you will face many challenges as you try to fulfill your duties. Aside from managing your company, you also need to make sure that your employees remain productive and inspired to help you reach your goals.
Importance of Leadership
An effective leader is important in attaining success. As the owner of a single-member LLC, you may have to automatically take on the role of leader. Even if you choose to hire a manager, you still have certain responsibilities, and you will have to be at the helm.
Another thing to take note of is that there is no one right way to be a good leader. You can choose a specific style and modify it to make it work for your company. It has to fit your business goals and allow your team to grow. As time goes by, you can even begin to create your own style to fit the needs of your company.
Generally, there are seven common leadership styles that have been proven effective.
- Transformational – The goal of this type of leadership is to help transform the members of the organization so that they will constantly improve. Transformational leaders create visions of what they want the company to achieve, and they share those goals with the whole team. These individuals often handle conflict among employees well. They also hold themselves and the team accountable in any situation.
- Democratic – If you want to always include the whole team in making decisions, you may benefit from using this leadership style. This type of leader still has the last say. However, they usually ask the members of the team about their thoughts and take their suggestions into account.
- Autocratic – Most people see this as the exact opposite of the democratic style. Autocratic leaders often choose to make decisions on their own—consultation with the rest of the team may not be necessary. This style is suitable for those who want to reach decisions quickly. One of its disadvantages is that it may leave some team members feeling out of touch.
- Laissez-Faire – This style is often associated with freedom. A leader who practices laissez-faire does not micromanage the team; they provide resources and support only when it is necessary. If you have built a lot of trust between you and your employees, it may be effective for you. However, it may not be ideal for newer teams that require more guidance.
- Bureaucratic – One word that sums up this leadership style is “rules.” A bureaucratic leader is strict when it comes to procedures and regulations. They expect employees to follow existing processes precisely. It is effective for routine-oriented jobs. Having a set of rules will give your employees an idea as to what is expected of them. However, it may not be suitable if your company’s operations rely on innovative solutions.
- Servant – People usually view servant leaders as generous and charismatic. They tend to work hard so that they will meet the needs of their employees. A good advantage of this is that it yields higher satisfaction rates among workers. If you want a work environment that promotes collaboration and equality among employees, this style is right for you. It may not be a good model, however, if you think that making difficult decisions quickly is crucial for your company.
- Transactional – As the term suggests, this leadership style is all about transactions. A leader who uses this model believes that when a worker agrees to take on a job, they also accept that they have specific tasks to complete and that they will have to follow the instructions of their leader. If you think that it is necessary to have a clear outline for a certain duty before assigning a person for the role, this style may be the perfect choice. However, some employees may see you as inflexible and cold, which may lead to lower job satisfaction in the long run.
Making the Right Choice
Deciding on a certain leadership style may require you to look at various factors. Take the time to determine which one is suitable for your single-member LLC and its mission. You should also consider your goals, personal style, and employees. It is possible to have a unique style that infuses your personality and values. You can also choose one or combine several styles, depending on the situation.