5 Leadership Skills for Small Business Owners
(Lessons from The Art of War)
Leadership in small business is deeply personal. It’s about more than setting goals or managing projects—it’s about the trust, loyalty, and respect you build with your team and customers. Unlike in a large corporation, your leadership is visible every day, and your ability to inspire confidence directly impacts your success.
I’m kicking off the year by rereading Sun Tzu’s The Art of War. It’s been a while since I’ve read it, and the last time I did I was surprised by how applicable it was to business. The leadership lessons really stuck with me and changed the way I thought about running a business. Now, with a few more years of experience under my belt, I’m curious what new insights I’ll pick up this time around.
This morning, I was reading Sun Tzu’s The Art of War and came across a passage in the “Estimates” chapter that highlights five essential virtues of a great leader: wisdom, sincerity, humanity, courage, and strictness. (At first, “strictness” might feel a little old-fashioned or harsh, but stick with me.)
As small business owners, we’re juggling multiple roles, making quick decisions, and staying closely connected to our teams. These principles aren’t just ideas—they’re the foundation for building trust, resilience, and adaptability. Let’s explore each one and how it can transform your leadership style.
Wisdom: Anticipate and Adapt
Wisdom isn’t about knowing everything—it’s about seeing what’s ahead and preparing for it. Wise leaders balance long-term vision with day-to-day adaptability, anticipating change and making thoughtful decisions.
Example: Imagine you own a small-town bakery, the kind that smells like cinnamon and fresh bread every morning (yes, I’ve been watching a lot of Hallmark Christmas movies). Lately, you’ve noticed more customers asking about gluten-free options. Instead of waiting to see if the trend sticks, you introduce a small gluten-free line. Soon, you’re attracting a new customer base, outpacing competitors who are slower to adapt.
In practice, wisdom looks like:
- Recognizing Trends: Stay alert to shifts in customer needs, industry developments, and emerging technologies.
- Making Data-Driven Decisions: Use metrics and feedback to guide your choices rather than relying solely on gut feelings.
- Thinking Ahead: Plan for long-term goals while remaining flexible enough to adjust to surprises.
Practical Tip: Dedicate 30 minutes a week to reviewing your business’s performance. What’s changing in your industry? What are your customers asking for? Use these insights to make small adjustments before they become big challenges.
Sincerity: Build Trust Through Integrity
Sincerity is about being honest and dependable. When your team and customers know they can trust you, it creates relationships that last.
Example: At my home health agency, we had a suggestion box by the fridge (because, let’s face it, everyone visits the fridge). We encouraged feedback, rewarded great ideas, and made a point of acting on suggestions whenever possible. It wasn’t just about improving operations—it showed our team that their voices mattered, and that trust paid dividends in loyalty and morale.
Sincerity in business might involve:
- Communicating Clearly: Be upfront about goals, challenges, and expectations.
- Following Through: Honor your commitments, whether they’re to employees or customers.
- Fostering Loyalty: Create an environment where people know their hard work and feedback are valued.
Practical Tip: Set up a simple way to gather feedback from your team or customers. Whether it’s a suggestion box or an anonymous survey, showing you’re listening goes a long way in building trust.
Humanity: Lead With Empathy
Empathy is the bridge that connects you to your team and customers. It’s about seeing people as individuals, not just roles or transactions.
Example: One of my favorite small-business owners, a florist, makes a point of checking in with her team during busy seasons like Valentine’s Day. Whether it’s offering a flexible schedule or surprising them with a catered lunch during crunch time, these small acts of care make her team feel appreciated and supported.
Humanity in leadership could look like this:
- Understanding Your Team’s Needs: Help employees balance their work and personal lives, especially during stressful times.
- Appreciating Contributions: Recognize and celebrate hard work, even for small wins.
- Connecting With Customers: Listen to their problems and show genuine investment in solving them.
Practical Tip: Schedule one-on-one check-ins with your team this month. Use the time to listen, offer support, and uncover opportunities for growth or improvement. When it makes sense, do the same with your customers. These conversations often reveal opportunities you hadn’t considered.
Courage: Make Bold Moves
Courage is what pushes you to innovate, take risks, and address challenges head-on. It’s about acting decisively even when the outcome isn’t guaranteed.
Example: A small-town bakery owner might hesitate to invest in an online ordering system, fearing the complexity. But after careful planning, they launch a pre-order system for holiday pies—and it’s a hit with busy customers looking for convenience.
Courageous leadership might involve:
- Innovating: Launching new products, services, or technologies to meet customer needs.
- Expanding: Exploring new markets or scaling your business despite uncertainty.
- Standing Firm: Facing conflicts or setbacks with clarity and resolve.
Practical Tip: Identify one bold move you’ve been putting off because of fear. Take a step toward it this week, whether it’s brainstorming ideas or consulting with a trusted advisor.
Strictness: Balance Expectations with Empathy
Strictness isn’t about being rigid or harsh—it’s about setting clear expectations and holding everyone accountable, yourself included.
Example: At my home health company, we made sure everyone knew their responsibilities and had the tools to succeed. We didn’t wait until annual reviews to have performance conversations—feedback was ongoing, which kept everyone aligned and supported.
Strictness in leadership might include:
- Accountability: Ensure everyone knows their roles and responsibilities.
- Consistency: Build reliable systems and processes.
- Discipline: Stay focused on goals, even when distractions or shortcuts arise.
Practical Tip: Write down your expectations for a project or role and share them with your team. Regularly check in to ensure everyone is aligned and on track. Nobody should ever feel blindsided during an annual review—it should all be part of an open dialogue.
How to Bring These Virtues to Life
Leadership is about balance. To lead effectively, you need:
- Wisdom: To anticipate and adapt to change.
- Sincerity: To build trust through integrity.
- Humanity: To connect with your team and customers.
- Courage: To act boldly in the face of uncertainty.
- Strictness: To set clear expectations and maintain accountability.
These virtues don’t just build a stronger team—they create a foundation for long-term success.
Practical Tip: Choose one virtue to focus on this week. What small change can you make to embody it in your business?
When you lead with these principles, you inspire trust, loyalty, and excellence—not just in your team, but in yourself.
Ready to improve your leadership skills or apply these lessons to your business? Let’s talk. Book a free consultation today, and we’ll create a personalized plan to help you lead with confidence and clarity.
