15 leadership behaviors and traits of successful leaders

15 leadership behaviors and traits of successful leaders

15 leadership behaviors and traits of successful leaders

April 10, 2022

Effective leadership behaviors every leader should be aware of

Are you a good leader? A bad boss? Or a meek manager? Do you possess the necessary leadership behaviours to be successful? Oh, and are effective leadership behaviors and attitudes instilled from birth or developed throughout the years?

If these questions bother you, you’ll probably find the answers below where we’ll go through the leadership traits and behaviors that set apart the good from the bad leaders. No, it’s not necessary that you possess all of them, but a big portion yes.

Also, the good news is that you’re not doomed if you’re not, let’s say, a natural public speaker. Because with work you can improve that and eventually become comfortable at speaking in front of big crowds. Now, there are some people who seem to be born leaders – their charisma is bigger than life – but even they work on improving their leadership behaviours.

Take Obama for example, put aside his policies, the man was predestined to be a leader. Yet, during his campaigning and later as President he sometimes struggled to communicate his vision and knowledge to the public. For that, he was trained and mentored by his communication team.

 1. Self-awareness

 2. Sympathy

 3. Critical thinking

 4. Good communication

 5. Perseverance

 6. Desire to pass the torch

 7. Curiosity

 8. Emotional intelligence

 9. Storytelling

 10. Interest for their team

 11. Humility

 12. Assessment

 13. Stoic mindset

 14. Self belief

 15. Integrity

 16. Conclusion

So what are leadership behaviors?

Simply put, leadership behaviors are sets of characteristics and actions of a good leader. Through this leadership behavior they are able to influence, motivate and guide a group of people. Each leader has a unique set of leadership behaviors and traits. For instance, some have a natural charisma, but lack confidence; others are super confident, but lack tact.

15 effective leadership behaviors and attitudes

Let’s see how many of these effective leadership behaviors you can identify with, and which ones you should work on improving. These leadership behaviors are most seen in successful leaders, from every day small business owners to Gandhi, Oprah and beyond.

Self-awareness

According to Jasmine Chen, Founder of LIFE Intelligence, one of the most important leadership behaviors is self-awareness. That involves both internal and external self-awareness. Internal self-awareness is seeing yourself clearly: understanding your strengths and weaknesses, why you act the way you do, your biases and triggers. External self-awareness is seeing yourself the way others see you: are you really coming off as funny, or arrogant? Are you presenting yourself as polite, or a pushover?

Here’s the problem: self-awareness becomes even harder to grasp as one gains power as a leader. Typically, the more power one has, the greater the chances that they will soon overestimate their skills.

In one example, a seasoned CEO, the grandfather of the company, decided to hold a town hall. But, rather than allowing attendees a chance to speak, he ended monopolizing the conversation with 90 minutes of monologue. While his attempt at mentorship came from a good place, he lacked the self-awareness to realize that his employees were feeling disengaged, obligated to sit through a talk while feeling disenfranchised by a less-than collaborative event. This is a classic example of how expertise and authority can get in the way of self-awareness.

Sympathy

The overused ideas of a leader always tend to lean in terms of strong, powerful, smart and so on. However, there is one major part of a leader that seems to be left out, sympathy. To actually have true passion and understanding for those you are in charge of makes a huge difference in productivity. If you are a leader that dictates rather than understands your employees then respect will not flow as naturally, says Steve O’Dell, the Co-Founder of Tenzo

Critical thinking

Leadership should always be based on a person’s ability to think critically. How do you as a leader handle difficult situations? How do you break bad news to someone? These types of questions are only solved through deep critical analysis of situations. If you have a leader that overlooks the deeper outcomes of interactions then a lot of details will be lost in passing. There is a reason why schools want to focus so much on critical thinking, and it is because it is what shapes our youth to become powerful leaders, says Jack Klauber, CEO of Everyday Dose

Good communication

As Gerald Lombardo, the Co-Founder of The Word Counter puts it, a good leader must have great communication skills. Leading is dependent upon being able to reach people and connect with people in a way that makes you trustworthy and reliable. When you’re a leader you need to be a resource that pours into others with guidance and direction. The flip side to good communication is knowing when to listen and how to decipher messages correctly.

Perseverance

Great leaders persevere in the face of adversity. My business, Snow Monkey, was created because I’m not one to back down from a challenge—when I was diagnosed with Celiac disease during college, there were few sweet treats available that could accommodate the dietary needs of an athlete with Celiac. I took matters into my own hands and created Snow Monkey, a plant-based, high-protein ice cream alternative.

That same drive that led me to create Snow Monkey and bring it to market was tested again when I found that many investors were hesitant to work with a female, 20-something first-time founder. Instead of giving up, I launched a Kickstarter campaign to gain capital and proof of concept. It was fully funded within 24 hours. The challenges of being a business owner never stop, but a true leader knows that no obstacle can keep them from their goals, says Rachel Geicke, Founder of Snow Monkey.

Desire to pass the torch

As a professional development trainer and college professor of management, says Stacy Roberts, President of SMR Leadership Solutions, I found that a quality that good leaders have is the desire to pass the torch.

They mentor, groom, and prepare their followers to grow and develop so the company, vision, and mission will continue once they’re no longer there. Succession planning is crucial to the legacy of an organization and I’ve seen many in leadership positions fail to cultivate the next leader to take their place.

One of the best managers I ever had told me, “Stacy, I want you to grow here. I want you to be ready to take my place one day and I’m going to make sure when the day comes, you will succeed in securing and excelling in my role.” Guess, what? She followed through and I’ll never forget her.

Curiosity

There are, according to Amie Devero, President of Beyond Better, so many well-discussed leadership behaviors that make good leaders, and trying to come up with one less obvious one may prove daunting. In my work as an executive coach and strategy consultant for the founders and leaders of high-growth startups, I inquire into this question on a regular basis.

Maybe the thing that comes to mind first is a deep sense of curiosity about themselves and others. Leaders are relentlessly curious, and tend to be adaptable enough to recognize opportunities to both grow themselves and their teams – as well as noticing subtle changes or behaviors that they can learn from. This proves true whether trying to grow one’s team, or adapt the strategy of an organization – or transform oneself to better serve an organization and its customers.

Without having that motivating curiosity, people (and so, leaders) become stale. They fail to notice the moments when an employee needs support, or acknowledgement; they often can’t see the ways they must themselves improve. That lack of curiosity means they simply cannot hear and utilize the constant feedback that’s available.

Emotional intelligence

In the words of Valeria Lo Iacono, owner of Symonds Training  emotional intelligence is an important trait of good leaders. People with high emotional intelligence have good awareness and control of their emotions and abilities, as well as a good understanding of other people’s emotional states.

In a leader, this means that they will:

  • Know their strengths and weaknesses and therefore be able to delegate effectively.
  • Avoid making impulsive decisions and lashing out at other people in anger.
  • Have better communication skills as they understand other people’s point of views.
  • Have great negotiation and persuasion skills, thanks to their ability to grasp other people’s emotions.
  • Lead a happier, more satisfied and more productive team, as their team members will feel valued and appreciated.

Storytelling

A storytelling skillset is an underestimated leadership trait, but it’s for strategy execution and to inspire others.

I personally learned it when I was working for a client and noticed something special. A senior manager had his team and colleagues respect and admiration. After I spent a few days with him, I realized what was his secret: storytelling.

He experienced one of the worst crises in the 1980s in his home country, Peru. He quickly shared his thoughts and inspiration.

After more than four years, I still remember how skillful he was to deliver much more than information through storytelling. He was capable of turning a dark mood into a combative one or lifting people’s moods with a humorous anecdote. Since that day I noticed that storytelling keeps showing like a distinctive trait among every good leader I have met, says Yker Valerio, Founder of Bon Vivant Caffè.

Humility

According to Capri Wheaton, CEO of Thryft Corp, great leaders possess a substantial amount of humility. Humble leaders create unparalleled levels of trust and transparency within their organization. Humble leaders achieve greater success by fostering safe, collaborative work environments. When a leader acts with humility, that sets the tone for the entire organization.

Assessment

Most lists of leadership-traits talk about communication, respect, gratitude, and so on. But one game-changing leadership trait that is often overlooked according to Jason Fonceca, Co-Founder and Director of Ryze, assessment. Good leaders must have superb assessment skills because they’re the ones leading. If they lead in a poor direction, it’s vital that they can assess the situation and adjust.

They need to assess their own strengths and weaknesses, as well as those of their team. They must assess their mistakes and amend them. Not to mention weigh all the paths, tools, and resources available and select ones that fit. Leaders must constantly assess progress, growth, and momentum, then speak up if things are off-track. They have to assess opportunities that may be disguised as bribes or distractions. Assessment is an invisible skill so many leaders neglect, don’t let yourself be one of them.

Stoic mindset

Staying motivated and not letting what they cannot do interfere with what they can do is an important leadership behaviour, claims Christian Bolz, CEO of Retail CRM Cloud. Some may call this a stoic approach since you doing what you currently are able to do for your business, rather than worrying about things that you cannot affect.

This idea also trickles down into the work mindsets of employees and pushes them and yourself to innovate and move with the possibilities at hand. This has been a defining principle during the pandemic to uplift my spirit and the people working with me.

Self belief

Successful leaders believe in themselves, says Outstanding Food CEO, Bill Glaser. You can’t expect others to follow you when you’ve barely been able to convince yourself. Before I became comfortable building businesses, I would decline opportunities because I was afraid. My fear of failure was holding me back, and it prevented me from finding success earlier in my journey.

Thankfully, my business mentors, peers, and self-study through influential books by thought leaders taught me to invest in myself and trust myself to reach my full potential. That self-confidence helped me become the best leader I could be, and now I’m passionate about sharing my wisdom with young aspiring entrepreneurs who might need a similar push into the light.

Integrity

As per Deepak Shukla, Pearl Lemon’s founder, integrity is a trait that all great leaders possess. Great leaders do what they say they will do and will live by their word. Integrity is what makes a leader responsible and answerable to their team. This relationship is the foundation of trust between any leader and their team, and is crucially important for any business.

Conclusion

These effective leadership behaviors and attitudes show the clear distinction between a mere boss and a good leader. A good leader is aware of the importance of teamwork, but is not afraid to make a decision that’s opposite to the rules and expectations. A good leader helps their team to grow and appreciates their feedback and effort. A good leader owns their mistakes but never apologizes for their passion.

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Ways to improve your business mind and become more business minded person

Ways to improve your business mind and become more business minded person

Ways to improve your business mind and become more business minded person

April 10, 2022

Ways to make your brain stronger and more business minded

Have you ever found yourself admiring successful business leaders, asking yourself how are they managing to be so powerful and fearless? I guess your conclusion is that they are just born with a business mind and that there is nothing you can do to be an outstanding business leader.

Guess what? You were wrong but you came to the right place to find out how to become business minded.

Having a business mind is having the ability to understand emotions, rationalize them and move past them. The only difference between your success or failure is your inner belief. To have a business mind means to continually improve your mind to solve any problems and to become a person who knows all the risks that come with every investment.

How to become business minded

To understand how to empower your business mind better, follow these tips that will help you become a stronger and fearless entrepreneur.

Find your motivation

You should start by finding the reason why you want to achieve this. We all dream of being successful but we know that nothing is achieved overnight and that winning always takes time and hard work. Therefore, ask yourself what are your personal and business goals, find what motivates you, and be ready to get through the ups and downs. So make sure you remain motivated and always remember why you started doing this in the first place. 

Remember, you are just one person and you cannot make everything happen in your company for a short period of time. Even though success is good enough motivation itself, when we are encouraged by others, our motivation becomes even greater.

Balance your life

Sometimes you’ll have to make great personal sacrifices for your business. You won’t have enough time to spend with your family and friends or have time to do your favorite activity.

That said if you don’t satisfy your personal needs, you will definitely start to be unhappy which leads to a lack of motivation and losing interest. So make sure you are achieving a healthy work-life balance.

Try to make your family and friends understand why you are not spending so much time with them. Handle all those social issues quickly and with care. As you become more experienced and patient enough, you will have time to spend with them in the future!

Don’t rely on emotions when making decisions

It’s true that emotions are instincts that guide us through life. But since they can strongly influence our judgments and choices, you have to be aware of how emotions affect your decisions. To become business minded, you must learn how not to rely too much on feelings, when making business decisions.

Try to use your mind sharpness and create logical analysis before any decision. For instance, you met a salesman, a friendly and funny person who promises fast delivery and maintenance for a year. However, his store is just too expensive and your budget cannot handle that amount. It might sound funny, but that happens more often than you think. For that reason, remember to always be rational and find the most reliable sources to buy from. Don’t let your emotions make the decision for you only relying on the convincing digital skills of salesmen.

Improve your leadership capabilities

First things first – leaders drive businesses. To be more business-minded, is to be more leadership minded. No matter how motivated and invested in your business you are, you cannot build a successful business by yourself.

There are mechanics of leadership that must be understood. The same skills that make you a great employee are not necessarily the same skills that will make you a great leader. Executive coaching is beneficial because it will give you the skills needed to take you from a motivated entrepreneur to a true executive-level leader.

You can begin by understanding yourself and pursuing continuous learning opportunities. Self-awareness helps you understand your strengths and weaknesses as a leader. Continuously seek knowledge through reading, management courses, and seminars to stay updated. Embrace challenges as opportunities for growth and never stop refining your leadership abilities.

Accept things as they are

Another tip on how to be business minded is accepting things as they are. The truth is that the good and the bad things happen at the same time and you have no control over everything. 

For example, you may create a new product, and make an excellent deal with a big client, but your machines broke for good. You will be angry and maybe afraid that you may lose everything. In those moments, a business mind would accept things as they are and will find a way to solve the problem without overreacting or giving up.

Evaluate the situation, accept things as they are, make sure you always do your best work, and explain everything to your clients. If they want to break the contract, accept it. Something better will come anyway! The world will not end if you fight until the very end!

Always be prepared for the worst

Analyze the market at all times, and be prepared even for the worst. It may sound pessimistic, but having a plan B, will give you an advantage over your competition. While others are shocked by the current situation, you will continue as nothing happened. A business mind must think outside the box and predict bad scenarios. If you know where you can go wrong, you can build tools that will help you handle those situations better.

On the other side of being a step ahead, to have a business mind also means to be able to predict future trends so you can keep the door open for big opportunities.

Conclusion

Having a business mind is not something you are born with, instead of that your business future is only in your hands. You can become business minded with hard work and by investing in yourself. As you grow personally and professionally you will develop your own ways to handle tough situations, but implementing these tips will definitely give you strong fundamentals of your career as an entrepreneur.

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8 ways to gain business knowledge quickly and become successful

8 ways to gain business knowledge quickly and become successful

8 ways to gain business knowledge quickly and become successful

April 08, 2022

Ways for getting your business knowledge rapidly
For someone just starting a business it can be intimidating to see veterans boasting around with their business knowledge. In such moments you should remember that these experts were once rookies themselves.

But what exactly is business knowledge? 

As it turns out, it is the sum of experience, skillsets and industry insight which you gather through time. Now, some would say getting an MBA would be a good start. While we do agree that college is important, we also agree that it’s not key for someone’s success in business.

There are other sources of business knowledge that can shape you as a professional. However, one thing is for sure – you should never stop learning and upgrading your knowledge.

Books to increase your business knowledge

Start from your local library. Usually, there are entire sections dedicated to business. Pick a few titles that spark your interest and study them, don’t just read them leisurely. If you already know your niche, that should be a good starting point too. The deeper you understand your niche, the easier for you would be to conquer it.

Even though you might be tempted to read motivational or business books, we suggest you don’t dwell too much on them. Of course, there are some pearls in the dust, but the majority are just not worth your time. 

On the other hand, biographies, memoirs, and autobiographies of successful entrepreneurs and professionals have proven to be a gold mine for business knowledge. This is likely because they are based on true facts which means it’s not just empty words or theories.

Books every entrepreneur should read:

  • Think and Grow Rich by Napoleon Hill
  • The Hard Thing About Hard Things by Ben Horowitz
  • Steve Jobs by Walter Isaacson
  • The $100 Startup by Chris Guillebeau
  • The Art of War by Sunzi

Podcasts

Although podcasts have been around for quite a while, it’s only in the most recent years that they’ve gained such popularity. So much so that it seems like everyone has a podcast these days. But despite the oversaturation, podcasts have proven to be a perfect source of knowledge for the busy, always-on-the move entrepreneur. You can play them whenever you want, whether while commuting, cooking or showering. 

Below you’ll find a list of the top 5 podcasts in our opinion, but we strongly encourage you to do a research and find the best ones in your niche.

Business News

Things shift momentarily. What was relevant yesterday doesn’t necessarily mean it would also be tomorrow. Hence, you need to stay up to date and follow the latest trends and happenings. 

It may be that once TV and newspapers were the only sources of business news, but that’s not the case today. Online there’s a zillion websites, blogs, vlogs, and God knows what else. Find the ones which resonate with you the most and keep up with them. Actually, Feedly, a news aggregator app can help you “keep up with the topics and trends you care about, without the overwhelm”.

Business Events to gain more knowledge

Meetups, conferences, seminars, trade shows… More or less all of them are a priceless source or knowledge you could use to grow your business. Whether from the speakers or the people attending, you’ll have a plenty to learn. 

Events are good because you no longer can hide behind the book and you have to put to practice what you’ve learned by now – for example, your communication skills.

If you can’t find any events near the place you live, you can always search for online events. After all, we live in the Internet age so there’s no excuse.

Oh, and if you live in or near London subscribe to our email list and we’ll send you a list of events every month.

Online Business Courses

Companies often complain that former students are not ready for real work. Part of the problem — is low business writing skills. How could it happen, considering all the essays they had to write? Those essays are mostly not relevant to real-life business writing assignments. If you want to learn something valuable and fast, ask for help with papers from a legit Smart Writing Service essay writing company, and find some courses online that will teach you professional business and marketing writing.

This twist requires some investment, as writing services don’t create content for free, but it is worth it. Informal education is major right now, and courses are leading the way. Again, this can be done in-person and online as well, depends on your preferences, financial power and location.

Although in Enterprise League we all have college degrees, it’s no secret that we love us a good course! You can often find us on Udemy getting to the bottom of a topic that’s caused us trouble. It’s fair to say that courses, including entrepreneurship novels, helped us gain knowledge in areas we previously had no idea about. 

Besides the above-mentioned online learning platform, here are three more we hold in high regards:

 

Mentor

You can read or listen to things but having a mentor to guide you through it all is much more effective. Before we continue encouraging you to find yourself a mentor, it’s also our duty to warn you that there are many people out there who call themselves mentors and business experts but are not worthy of the title.

This has to be a person you click with, someone who would be able to lead you to your goals with their advice.

Videos and TED talks

Watching videos of experts on stage, or even at their homes, sharing their experience with the world is a quite convenient way to learn a thing or two about business. Thanks to Youtube and their likes, you can find hours of video content available for free.

One thing is for sure, if TED talks can’t teach you how to do business, they can surely motivate you to accomplish your goals.

In person training

Practice

Unless you put to practice the things you’ve learned from the sources listed above, no matter how insignificant you think they might be, it’s all in vain. Humans learn best by trial and error, that’s a fact. 

Once you start doing, you’ll be able to uncover things that no podcast or course can teach you. You’ll be your own teacher.

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How to spot a valuable customer and keep the focus on the right place

How to spot a valuable customer and keep the focus on the right place

How to spot a valuable customer and keep the focus on the right place

April 06, 2022

Everything you need to know about finding out who is your most valuable customer

In business, everything revolves around customers. Whether it’s about how to attract more, how to deal with rude customers, or how to keep them happy, it’s always about them and that’s the way it should be. 

Therefore, small businesses usually think the more the merrier. But is it really? As bad as it sounds, not all customers are equally important for your business. That’s why knowing which one is a valuable customer for your business is highly important.

In business, you’ll learn, it’s quality over quantity. Especially in the long run. Therefore, you should identify your most valuable customers and keep your focus on them.

One of your more valuable customers could be more worth to your business than 10 others combined together. And it’s not just about how much money they spend on your services or products. There are other factors you should consider as well.

8 simple ways to identify who’s your most valuable customer

Identifying a valuable customer will help you with customer retention. And as you may know, investing in the retention of your loyal customer base is cheaper than attracting new customers.

The following examples will help you learn from someone else’s experience and to identify the most valuable customers. That will help you come up with your own formula.

Good company culture fit

With all the mistakes I’ve made as an entrepreneur, I would say that the biggest thing that I would go back and tell my younger self is that client fit should be a bigger focus than client budget. My most valuable customers have been people that I get along with personally. In our sales process, before we even send a proposal out we ask ourselves “Is this someone I would want to hang out with?”

Just because someone has the money and wants to work with you doesn’t make them a good fit for you, your company, or your employees. My biggest successes in business have come from working with people I like over people who can pay me. I try not to subject myself or my team to work with people who aren’t kind, genuine, and caring above all else.

We turn down a lot of business now because the vibe isn’t right. We don’t want to work with just anyone who can pay our fees – we want partners.

Larissa LaMaster, COO and Co-Founder of Boundless Media

Vocal brand advocating

The way we identify our most valuable customers is quite simple. They are those who recommend us to friends and family and are vocal brand advocates on social media.

We know when a customer has come from a recommendation or referral because we offer referral discounts and we find our brand advocates using keyword analysis tools like Meltwater, which allow us to sort through our social media impressions and incoming brand mentions.

By tracking which customers are actively and positively passing our name around social media, we have a good idea who our most valuable customers are because these are the people who are essentially doing free marketing for us. Then, we try to turn our followers into customers.

Bryce Welker, CEO at CPA Exam Guy

Repeating purchases

As time goes on you will begin to see which customers come back for your services. If someone is always eager to work with you again then you can easily notice that they are an important customer.

Customers that are always eager to work with you again should always be treated as if you were friends. Be casual with them and don’t try to haggle with them.

Transparency is always best when you find a loyal customer because they will appreciate you being honest with them as a business. Once this trust is established then you will find that they will be even more inclined to come back for more and tell others about your company as well.

Chris Gadek, Head of Growth at AdQuick

A tested formula

The marketing formula I have used over years to identify the most valuable customer is the Customer Lifetime Value formula. The method looks at customer’s average spends on your business and their frequency of purchase. This method also pays importance to what it costs to acquire the customer, the cost of servicing the customer, etc.

To calculate the Customer Lifetime value, use the following formula: Customer Lifetime Value = (Average Order Value per Customer) x (Number of Orders per Year) x (Customer Retention Rate) – (Cost of Acquiring the Customer).

Veron Black, CEO at Asaa88

Highly supportive and engaged

Tracking down your most valuable customers won’t be tough because these customers definitely stand out amongst the rest. These are the customers who are very loyal to your service and show a keen interest in what you do.

While analyzing the frequency of customer sales is one way to draw up a list, you could go one step further and take a look at the relationship your customers share with your brand. Your star customers will be highly supportive and engaged with everything you do. This could be anything from sending more customers your way, leaving great Google reviews, getting in touch with you to share their appreciation, or subscribing to your services long-term.

Harry Morton, Founder of LowerStreet

Multiple qualities

To identify our most valuable customers, we look at three factors: length of time spent using our software, fleet size, and interest in sharing and promoting our service. Since our services are subscription-based and we charge per vehicle, it’s obviously a goal of ours to attract businesses with large fleets that stay on our service indefinitely.

However, we also give a lot of weight to business customers with smaller fleet sizes that promote us within their industry, leave us positive feedback in online reviews, and recommend us to friends. We call this good reach, and the customers with good reach are often the key to our expansion and growth. Retaining them is just as important to us as retaining larger customers who technically bring in more money.

Daivat Dholakia, Director of Operations at Force by Mojio

Ask for feedback

In my understanding, although social media makes it easier, most customers never express their opinions about a company’s goods. Typically, only the top 10% (very satisfied) and bottom 10% (extremely unsatisfied) of

a company’s customers offer their opinions about its service. Any customer who is willing to share their thoughts with a business is extremely valuable.

Lulu Albanna, Co-Founder of WRC Media

Customer feedback is extremely important in business. However, not everyone is willing to write one for your company and products, so if you have customers who provide feedback, make every effort to keep them. They are the most valuable, and they also help to improve things that need to be improved because you will have an idea from the customer’s point of view.

Lucas Travis, Founder of Inboard Skate

Pay attention to your data

The best way to identify your most valuable customers is to analyze your customer data and identify patterns and trends that indicate which customers are the most valuable. Some factors that may be considered include customer lifetime value, purchase frequency, and average order size.

Analyzing your customers is an art and a science, and there is no one bullet solution. Treat them with respect, understanding, and individualized attention, and they will reward you with their business.

Serg Valencia, Founder of SERG VALENCIA

It’s critical to keep track of your data so you can identify customers who make frequent purchases from your services. If a consumer is always ready to buy your items, that customer is precious, and you should treat them with the respect that they deserve. Providing customers with incentives or discounts is a great way to maintain their trust and interest.

June Griffith, Founder at Garden Furniture

Conclusion

Identifying your most valuable customers is based on factors like purchasing power, brand advocating, social proof, etc. This makes customers with lesser purchasing power which are excellent brand advocates equally valuable as big spenders who are shy on referrals.

What’s important is to have a personalised relationship with your valuable customers and reward their loyalty appropriately.

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Crucial factors to consider when choosing your business location

Crucial factors to consider when choosing your business location

Crucial factors to consider when choosing your business location

December 11, 2021

Factors to consider when choosing a business location
Location, location, location. It is all about the business location. You may have the most exceptional product or service on earth, but if your business is located in the middle of nowhere, the reality is you won’t make much money. 

Firstly it’s important to find out what business location is good for the type of business you operate. Are you a retail business, mobile business, industrial site, or are you expanding from online business to online and brick-and-mortar? Every business type needs to prioritize different factors when choosing a business location, but there are some fundamental factors that apply to all types of businesses. When choosing a location, you should also consider if you want to announce a new business location for marketing and publicity purposes.

9 things to keep in mind when choosing a business location

A business location strategy takes planning and research and a willingness to thoroughly vet all of your options. To help you, we have carefully selected the most crucial factors to consider, when choosing a business location for your business. With these helpful tips, you can identify the best place to locate your expanding business. 

Proximity to the market

The closer you are to your customers, the greater the chance that they will buy from you again. Who is your customer and where are they located? Are they other manufacturing companies? or are they an end consumer? You must have answers to these questions, before choosing a business location.

Rent price

You might think this goes without saying but the rent price is not all you need to consider when it comes to money. When choosing a business location you must consider the hidden cost of doing business as well. Renovations, taxes, utility upgrades, minimum wage requirements, and economic incentives are costs that can increase your costs or save you some money. 

Moreover, don’t underestimate the power of word of mouth. Before you sign the rental papers, speak with other business owners in that area. Find out as much as you can about the location. In the end, you can never know for sure whether a business location will bring success to your business or not, but making thorough research will help you ensure if a location is the best fit for your business.

Demographics

Demographics are without a doubt, one of the most significant factors to consider when choosing a business location. It’s important to be near your target customer group. For example, you don’t want to sell gaming consoles in an area populated with older generations. The sales will be higher in an area dense with your target market.

Infrastructure and accessibility

Good infrastructure is beneficial to any kind of business. Power and water supply, good road connections are just a few factors to consider when choosing your business location.

Lack of enough parking spaces for your employees, or accessibility for people with disabilities, can be an issue in some locations. A good location for business is usually not in a busy city area but exclusions apply. Nobody wants their employees to spend hours getting to work. Therefore, choose a location that won’t cause any problems with daily routines and tasks.

Distribution network

If your business is doing manufacturing, you’ll require a good location for a business start-up. Nobody likes to spend more money on transportation than they have to. Think twice before choosing a business location, good proximity to suppliers is key in minimizing logistics costs.

Fortunately, you can leverage Enterprise League to find a pool of suppliers near your location. It’s free and it’s simple to use. Just set up your company profile within a minute and find the best suppliers around you with a single search.

Competition – to be closer or not

This business location factor is a double-edged sword. It creates both an advantage and a disadvantage. For instance, if the location has a lot of surplus customers because of your competitors, you might attract them as well– an extra benefit for your business. However, it can also go in the opposite direction – if both sides sell the same product, one team will end up losing. 

Moreover, taking over a business location that’s not saturated by your competition might be a great opportunity to kick-start your business. But make sure that your product or service is in high demand in that area. Keep in mind that the reason your competition is low in some locations might indicate that it just doesn’t fit your business type.

Remote business location

A remote location is another flexible solution that can help any business. Having your business on a B2B platform gives you the benefit to access and work with any location worldwide. You will no longer have location as a barrier and you can easily collaborate with companies from every location and all sectors. Start using the B2B platform, share business tenders, receive proposals and share deals.

Safety

Even though safety might be underestimated it’s still one of the most crucial factors when choosing a good business location. This mostly applies to businesses that might be at a higher risk for burglary and theft but applies to every type of business as well. Your and your employee’s safety can’t be compromised, especially if your business operates during the night.

Recruiting efforts

If you are planning to hire employees, good access to public transportation will be a big plus for your business. Finding quality employees is not easy these days, so don’t put yourself in a position to lower your standards because you couldn’t entice a qualified workforce.

Conclusion

There are a lot of factors to consider when choosing a business location. From the rent price to available parking, to market demand, it’s all worth it since picking a good location will significantly help you kick-start your business.

The closer the products are to your customers, the higher your market value. Lastly, after going through all these factors, judge your location from customers’ or employees’ perspectives, besides from you as a business owner, and get even more insights to help you make the best decision.

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