Lessons in Leadership From Small Business Operators

There’s no one-size-fits-all formula for running a small business, but great leaders tend to share a few common habits. Over the years, the ICSC Small Business Center has asked founders, owners and experts what effective leadership really looks like when you’re when you’re wearing all the hats. Their insights point to a clear theme: It’s not about having all the answers. It’s about how you treat others, how well you take care of yourself and how firmly you stay connected to your “why.”

These reflections highlight the habits that help small business leaders thrive.

Prioritize Your Own Well-Being To Lead Effectively

Strong leadership begins with self-care. Sleep, exercise and meditation aren’t extras — they’re foundational to clear, confident decision-making.

“You see things you might have missed when your mind is cluttered,” said small business consultant Cindy Giroud. “For me, for instance, meditation isn’t optional. First thing in the morning, I meditate. It’s not a long time. I don’t have the patience for that. But I won’t allow myself to have my cup of tea or check my email until I meditate. That’s how I stay grounded and that boundary is so important to success.”

Stay Connected to Your Business Purpose

A clear purpose keeps you going when things get tough. Reconnecting with the reason you started your business helps guide big decisions and keep burnout at bay.

As Chef Ype Von Hengst, co-founder of the Silver Diner chain, said: “We set out to build a company that would create futures for people. When my co-founder asked, ‘What’s really important to you?’ I told him, ‘When I step away from this, I want to be able to say I created a future for as many people as I could.’”

That has been his north star for more than 30 years.

Recognize and Uplift Employees To Boost Morale

Small gestures of recognition have a big impact. Public praise fosters pride, motivation and loyalty among your team.

“Everyone wants to feel like they’re doing a good job and that their hard work has been seen,” said Shepherd. The recognition doesn’t have to be grand. “Maybe, in front of a customer, say: ‘This salesperson has been an all-star today, getting people through the lines,’” said Shepherd. Public praise is key. “It adds an extra layer of appreciation when you praise in front of others.”

MORE FROM SHEPHERD: How To Maintain Employee Morale During the Holidays

Improve Communication by Asking the Right Questions

How you ask a question matters just as much as what you ask. Use language that fosters trust and understanding rather than putting people on the defensive.

For instance, instead of asking an employee: “Why did you do that?” try: “Walk me through your thought process, said consultant and executive coach Deb Calvert. “That way, you’re promoting awareness for all of us and breaking it down. It’s a neutral question.”

And remember, Calvert added, even the best questions are worthless if you’re not truly listening to the answers.

Make Onboarding Personal and Purposeful

A strong start leads to better retention. Help new employees feel expected, prepared for and valued from day one.

“There’s nothing worse than showing up at a job and having someone say: ‘Who are you?’ said Peter Vinge, CEO of Torbay Consulting, which provides HR strategies for small businesses. “Showing someone that you’re excited about having them onboard and showing them that you’ve planned for them goes a long way.”

MORE FROM VINGE: Top Tips for Onboarding New Employees

Build a Team That Complements Your Strengths

Good leaders know they can’t do it all alone, nor should they. Delegating responsibilities like finance allows you to focus on leading strategically.

“Thank God for [certified public accountants] and bookkeepers,” said Elijah Campbell, a defensive back for the Miami Dolphins and co-owner of a Nautical Bowls franchise location in Marco Island, Florida. “We tried to do that ourselves for a little while, and that’s impossible. One key piece of advice I would give to business owners is to pay people to do things like finances, bookkeeping and inventory. A lot of people [try] to save every penny, but you need to think at least 10 years down the line. In the beginning, it’s going to suck, but once you have systems and processes set, the business starts to run itself.

Admitting you don’t have all the answers is crucial for scaling a business successfully, added Ellie Greenberg, CEO of immersive retail company Wonderlosity.

“I had to say to myself: ‘It’s time for you to find other people with experience to take over [some] specific areas,’” Greenberg said. “I didn’t come from a retail background, and that’s something every entrepreneur needs to consider — whether you have the experience or not. There are moments when you need to admit you don’t and hire the right people who will help your business grow. It’s a hard thing to do for people like me who like to be in charge of everything.”

MORE FROM GREENBERG: Creating Immersive Stores