According to AdviCoach, small business owners must strike a balance between being a leader and a boss.

Bakeries often struggle with the question of how to develop leaders within their business and how to instill a positive attitude throughout the organization to maximize productivity and success.

As one example, when a worker makes a costly mistake, do you penalize them by docking their pay? Or do you instead reward positive contributions that go above and beyond the employee’s job requirements?

“I believe in a reward structure that rewards employees when they are doing well,” says Marius Pop, owner of Nuvrei in Portland, Oregon.

Every employee has a boss, however not every employee has a leader. A boss is the top of the chain of command and gives employees direction, and is often the owner or a store manager in a small business. While bosses are considered necessary, most often businesses lack a leader who goes above and beyond, setting examples for their employees and empowering them to follow.
Recognizing this, AdviCoach, a national business coaching and advisory firm customized for small- to mid-size businesses (SMBs), examines the differences between being a boss and being a leader.
“The way an individual in charge approaches his or her leadership role can have a great impact on how a small business operates and grows,” AdviCoach founder Terry Powell says. “Not only being a boss, but truly becoming a leader, is essential when running a small business. Bosses tell people what to do to make sure the business thrives. The leader does this as well, but a leader shows them how and explains why.”
There are a number of differences between bosses and leaders. Here are just a few of these key traits:

• Bosses drive their employees to success; Leaders coach them toward their best performance.
• Bosses instill intimidation; Leaders inspire collaboration.
• Bosses set expectations; Leaders model them.
• Bosses use a lot of “I’s”; Leaders use many “We’s.”
• Bosses take credit for each success; Leaders give credit to others when credit is due.

“When analyzing what a great leader embodies and what a boss possesses, the differences are pretty clear,” Powell says. “It’s essential for small business owners to understand that the best business owners have a balance between the two archetypes.”
If improving leadership qualities is a key goal, then consider connecting with a small business coach. A trusted, third-party resource provides an outsider’s perspective and can help identify ways to become a better leader.
For more insight on this topic and advice on other small business challenges, visit the AdviCoach blog.