Topic 25 Flashcards
What triggers transition from entrepreneur to leader
-> Size of workforce
-> Revenue and financial complexity
-> Customer base
-> Operations and communication
-> Resources used
From Entrepreneur to Leader – Key Changes -> aspect: ownership
Entrepreneur -> Full ownership, high control
Leader -> Shared ownership (e.g. shareholders)
From Entrepreneur to Leader – Key Changes -> aspect: style
Entrepreneur -> informal, quick decisions
Leader -> Formal, structured systems
From Entrepreneur to Leader – Key Changes -> aspect: decision making
Entrepreneur -> hands-on, instinctive
Leader ->strategic, based on data & advice
From Entrepreneur to Leader – Key Changes -> aspect: tasks
Entrepreneur -> does most things alone
Leaders -> Delegates to departments & specialists
From Entrepreneur to Leader – Key Changes -> aspect: focus
Entrepreneurs -> Starting up & surviving
Leaders -> Long-term planning & sustainability
Why change is hard -> 5 reasons
-> As businesses grow, entrepreneurs must:
1. Learn new skills
2. Accept loss of control
3. Rely on others
4. Adapt to formal business structures
5. Face higher stress and responsibility
Key challenges in becoming leader -> 7
- The need for formality
- Shared ownership
- Greater responsibility
- Delegation and trust
- Strategic vision
- Motivation and leadership
- Stress and pressure
Strategies to manage transition -> delegation and trust
-> Hire skilled managers
-> Let them lead departments
-> Trust their judgment
Strategies to manage transition -> earning respect
-> Treat employees fairly
-> Praise good work
-> Be honest and consistent
Strategies to manage transition -> maturity and experience
-> Accept responsibility
-> Learn from mistakes
-> Use feedback to grow
Strategies to manage transition -> training and development
-> Attend leadership courses
-> Learn about communication, time management, delegation
-> Improve skills like financial management and IT systems
Leadership Skills Entrepreneurs Must Develop -> 5
- Communication
- Delegation
- Problem-solving
- Emotional intelligence
- Strategic thinking
