History witnessed many great leaders and they left us with their experience stories so that we could learn from them and apply in our lives and businesses. Stories are available from both sides of the coin, i.e., good leaders and bad leaders. Both cases are good for implementation in our life. The only important aspect which determined their success or failure was their ability to make decisions and thereby accomplishing the set goals. This quality or skill also helps in getting your team’s attention and respect. This is also the thing which you can’t just learn by reading books and stories. It is a personality trait that comes by practice and real-life experiences. A good leader will keep the team motivated and cheerful and getting most of the productivity done by just his/her mere presence. Some people are just born leaders and leadership comes to them naturally, that they so easily work with the team that some of us couldn’t even think of. A leader like Charles Field Marsham and others takes care of his/her team, pays attention to the individual member, cares about their health, know their needs, etc. Charles Field Marsham is a Canadian entrepreneur with more than 20 years of experience in building businesses.
Five much essential qualities that tell you a lot about how leadership works are listed below:
1. Vision:
A great leader carries this awesome skill that comes with experience. They can look into the future of the business and plan and implement policies accordingly. They have a very clear idea of what this company is going to be in the next 10 years under their leadership. Some people also think of a leader as a manager, but it’s totally wrong. A manager couldn’t get that bonding with employees which a great leader easily can.
2. Courageous:
Courage is an important factor in every step of life. If you are not willing to be courageous, you will never succeed, let alone be a leader. Courage always doesn’t mean adopting out of the box methods and implementing them in your business but is actually means that you are up for availing the risks that come with the process of achieving your goal without any assurance of success.
3. Integrity:
The integral part of any business is to stay truthful and loyal to your business. If you are not truthful to your people and your organization, the respect and reputation of your business in the market will go down immediately. Being transparent to your employees and make them feel that they are an integral part of the system actually helps in increasing productivity.
4. Planning Strategically:
It is the most important strength of a good leader. This skill helps them plan with very much accuracy and can easily see where the trends are going. This data helps in getting the company right on track and if implemented greatly can even take you ahead of your competitors.
5. Cooperation:
If you are not willing to cooperate with your team, then there isn’t going to be any work done. Your team relies on you and follows your path on how and what task should be done in a certain way. When you will actively cooperate with them, they will also cooperate among themselves and it will dramatically increase your productivity.
Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.
Small business owners face numerous considerations when deciding whether to purchase or lease a business facility.
Once a business owner identifies their specific facility requirements and successfully locates the ideal property, they encounter another crucial choice: Should they buy or rent the property?
This decision arises in two distinct scenarios: First, when the owner of the desired property is open to either selling or leasing it, and second when you have multiple options, some available for purchase and others for lease.
To make this decision confidently, it's essential to evaluate the financial aspects and the determining factors that influence the suitability of leasing versus buying a business facility.
Comparing The Economics Of Leasing Vs. Buying
What should you go for when it comes down to lease vs buy for business?
In business decisions, few choices are as pivotal as determining whether to lease or buy assets. This holds for many assets, from real estate to equipment, vehicles, and more.
This decision can have significant financial implications for business owners, and understanding the pros and cons of leasing versus buying is crucial for informed decision-making.
Let’s explore the economics of these two options, exploring the advantages and disadvantages of each to help business owners make the right choice for their specific circumstances.
The Economics Of Leasing
Leasing, as a financial arrangement, is a concept that extends beyond the realm of property and includes various assets such as vehicles, equipment, and even software.
At its core, leasing is a method of obtaining the use of an asset for a specified period while making regular payments to the asset's owner, whether it's a lessor or a financial institution.
The economics of leasing involve several key factors that affect the decision to lease rather than purchase outright.
One of the primary economic benefits of leasing is the conservation of capital. When you lease an asset, you avoid the substantial upfront cost of purchasing it. This is particularly advantageous for businesses, allowing them to allocate their capital to other essential operations or investments.
For individuals, it means not having to deplete their savings to acquire a costly asset, whether it's a car, a piece of machinery, or even a home.
Leasing often offers more predictable and manageable cash flows compared to outright ownership. Lease agreements typically involve fixed monthly payments over the lease term, making it easier to budget and plan for expenses.
Tax benefits can also make leasing an economically attractive option. In some cases, lease payments are tax-deductible as a business expense.
This can lead to significant tax savings for companies. However, tax benefits can vary depending on the asset being leased and the specific tax regulations in place.
However, There Are Economic Drawbacks To Leasing As Well:
Long-Term Costs: Over an extended period, leasing can be more expensive than buying, primarily due to the cumulative cost of lease payments.
No Equity Buildup: When you lease, you do not build equity in the asset. It remains the property of the lessor.
Limited Control: The lessee must adhere to the lessor's terms and conditions, which can be restrictive.
The Economics Of Buying
The decision to buy an asset, whether a property, a vehicle, or any significant investment, is a fundamental economic choice with both immediate and long-term financial implications.
Understanding the economics of buying involves considering various factors that impact the purchase decision and how ownership affects one's financial situation.
One of the central economic aspects of buying is the upfront cost. When you decide to buy an asset, you typically need to pay the full purchase price, which can be a substantial one-time expense.
This upfront payment represents a significant commitment of financial resources and can affect your liquidity, especially for big-ticket items like real estate or high-end machinery.
Buying an asset often means having complete control and decision-making authority over it. You can customize, modify, or use the asset as you see fit.
This sense of ownership can be economically empowering, allowing you to tailor the asset to your specific needs or preferences.
Mortgages and loans are common financial instruments for buying high-value assets like real estate or vehicles. These arrangements enable individuals to spread the cost of the asset over time.
While loans may involve interest payments, they make the purchase more accessible and can be financially strategic.
However, Buying Also Has Its Economic Downsides:
Higher Initial Costs: Purchasing assets often requires a substantial initial investment, burdening businesses with limited capital.
Risk of Depreciation: Some assets, like vehicles and certain equipment, can depreciate over time, impacting their resale value.
Maintenance Costs: Owners are responsible for maintenance and repairs, which can be costly.
Reduced Flexibility: Selling owned assets can be time-consuming and might not be feasible in rapidly changing business environments.
Factors To Consider When Making The Lease Or Buy Decision
The lease vs. buy decision is critical and can significantly impact a business's financial health and long-term prospects. To make an informed decision, business owners must weigh several important factors.
Here are key considerations to keep in mind:
Financial Considerations
The financial aspect is often the cornerstone of the lease or buy decision. One of the initial considerations is the upfront costs. Buying a property typically involves a substantial financial commitment, including a down payment, closing costs, and potential expenses for renovations or furnishing.
On the other hand, leasing usually requires a security deposit and the first month's rent, which are notably lower than the upfront costs of buying. Another critical financial factor is the monthly expenses associated with each option.
While leasing tends to result in lower monthly costs than buying, owning a property often entails higher mortgage payments. However, these payments contribute to building equity in the property.
Additionally, the potential for property appreciation is a financial consideration, as owning a property allows you to benefit from the property's value increase over time. Conversely, leasing may increase annual rent, impacting your financial planning.
Lastly, the tax implications are significant. Property ownership can provide tax benefits, such as deductions for mortgage interest. In contrast, leasing does not offer these tax advantages but may simplify financial management.
Long-Term Goals
Your long-term objectives play a pivotal role in the lease or buy decision. Buying might be the more suitable choice if you are interested in benefiting from property appreciation and potentially selling the property for a profit.
On the other hand, if flexibility is a priority, such as the ability to relocate or change your living situation without the responsibilities of property ownership, leasing provides greater adaptability.
Understanding your long-term goals is crucial in deciding to align with your aspirations.
Responsibilities and Maintenance
The responsibilities and maintenance associated with each option are essential factors to consider. Property maintenance costs, such as repairs and upkeep, are the responsibility of property owners.
Leasing, however, often shifts these responsibilities to the landlord responsible for maintaining the property. Moreover, property ownership allows for customization and renovation, allowing you to modify the property to your preferences.
In contrast, leasing may come with limitations on modifying the property, as any alterations typically require landlord approval. These factors highlight the practical aspects of the lease or buy decision and the degree of responsibility you are willing to undertake.
Market Conditions
The state of the real estate market at the time of your decision is a critical external factor. It can significantly influence the cost-effectiveness of leasing or buying.
Buying may be more advantageous in a buyer's market, characterized by lower property prices and favorable interest rates.
In contrast, leasing might be the more prudent choice in a seller's market with rising property prices, as property prices may be inflated, making buying less cost-effective.
Duration of Stay
Your anticipated duration of stay in the property is a key factor. For a short-term stay, leasing is often a more practical option.
Buying may not provide enough time to build equity and recover the upfront costs of property ownership.
Conversely, plan to stay in the property for an extended period. Buying can be financially advantageous in the long run, allowing you to benefit from property appreciation and build equity over time.
Making The Decision
The decision to lease or buy should be based on your business's unique needs, financial situation, and long-term goals.
Conducting a thorough cost-benefit analysis, factoring in your specific circumstances, and considering how the economics of leasing or buying align with your business strategy is advisable.
Read Also:
How Business Owners Can Better Utilize Freelance Work
5 Office Organization Tips Every New Business Owners Must Know
Alternative Business Financing – What Is It And How Do You Do It?
So, your business is thriving. All the hard work is paying off and you’re starting to reap the benefits – repeat customers, growing workload, increased revenue, so is it time to move out of your 3rd bedroom-turned-office, into a more professional environment? It can be tricky to take the leap as an SME owner – so here are key things to consider when buying or renting office space for your business.
Shared or Private Space?
There are many options for professional working environments, including the private vs shared space debate. There are pros and cons for each option, so it really is down to how your business operates.
If you are currently the only worker or you have 2 to 3 employees, you may benefit best from a co-working environment. This means you will be in a larger office space which other business people are using at the same time. You can take advantage of an office environment with internet allowance, desks, lockable storage units, and telephone systems without having to pay a hefty price tag for private space.
Alternatively, if you have a larger amount of staff, or the business you run is highly confidential or sensitive, you may be better off in a private space where you can discuss business freely and openly without worrying about being overheard.
There are many serviced offices across the country, with companies such as BE Offices and Prime Office Space offering both shared and private spaces so you are sure to find something to suit your business.
Renting or Buying?
When looking to set up your first office, you will no doubt deliberate over renting or buying. The rental market is extremely popular as it gives you the flexibility to move on at the end of the lease. So, if your business grows significantly and you need more staff, you can move to a larger space in line with business requirements. This flexibility may also be useful if you decide an alternative location may be better down the line for your business, due to localised demand for products or services. Renting also usually means fewer upfront costs than buying, but you do run the risk of rental values inflating, with a subsequent high impact on your finances.
Buying is obviously a huge commitment and requires a larger investment up front. This may be suitable for you if you have a good idea of your long-term business requirements and you know that the property will serve these. This may be the case for businesses requiring large factory spaces, for example. It also gives you the ability to make any changes to the property that you desire –you own it, so you can do what you like to it.
Is It Practical?
It is also important to consider whether the location is suitable for you and your staff. It is easy to get to via public transport? Does it have sufficient car parking?
Finally, always put your Health and Safety hat on and make sure the building abides by current health and safety standards. It may look pretty, but it needs to be a safe place to work with comfortable conditions for you and your staff. Undertake a risk assessment before you move in to highlight any potential issues and implement strategies to mitigate risks.
Read Also:
Choosing Open Office Space Vs Cubicle Office Space
Necessary Spaces To Include In Building Your Office
An Introduction To Adaptive Leadership Skills
Many people working in managerial positions are interested in developing their leadership skills and learning how to supervise their team more effectively. There can be many challenges to building a good team environment and making sure everyone in your team is able to do their job correctly and efficiently.
Adaptive leadership can involve understanding the needs of your staff, the personalities of everyone on your team, and fostering a great workplace environment that encourages people to feel comfortable and promotes productivity and a good work ethic.
Adaptive Leadership An innovative And Simple To Adopt
Needless to say, paying attention to all of the factors can be complex and very challenging, even for experienced managers. To handle all of these concerns in a modern workplace, a unique approach has to be taken, which is why the adaptive leadership framework was first developed.
The adaptive leadership approach to leading a team has been formulated with current research and workplaces in mind to provide leaders with the techniques and strategies they need to handle the many challenges they face. This article will introduce you to adaptive leadership and some of its key concepts.
2 Types Of Errors In The Adaptive Leadership
In the adaptive leadership framework, there are two recognized problem types: technical and adaptive. No system is combined without an error process, and adaptive leadership is like that.
Here are the two main problems of adaptive leadership.
1. Technical Problem:
Technical problems are the more simple of the two. They involve issues with a set solution that individuals can reach with the proper, specialized knowledge. An example of this could be a math problem with a single, correct answer.
A trained specialist with the right training can solve the problem and provide the adaptive leadership correcting solution.
2. Adaptive Problem
On the other hand, adaptive problems are those designated by the adaptive leadership framework as problems without trained experts who can solve the problem or those without an established rule or procedure as to how they should be solved.
These problems could be open to interpretation or undefined in nature. This is where an adaptive leader is needed to define the problem and then find a way to mobilize the team in order to solve it.
4 Main Working Principles Of The Adaptive Leadership
Adaptive leadership involves four main principles in its development and implementation: The principles of adaptive leadership are different and unique. If you like to understand the pulse of adaptive leadership, you have to know based on which regulations the adaptive process is performing.
Here are the four working principles of adaptive leadership.
1. Emotional Intelligence
This is the ability of a leader to recognize their own feelings as well as those of others, particularly their team. This trait further incorporates the ability to empathize with others and build quality relationships.
2. Organizational Justice
Adaptive leadership is the strengthening of a community of honesty, trust, and openness. A non-judgemental space where everyone can share gives workers the ability to focus on the job at hand. Along with the specific area knowledge, the overall productivity of the employees is going to enhance.
3. Development
Adaptive leadership is the process of continually learning and encouraging a growth mindset among team members as well. Encouraging and embracing the concepts of the other team members are the key principle of adaptive leadership. So along with development, the innovations are in process.
4. Character
Adaptive leadership is the skill of having a good sense of rightness as well as a high level of transparency with one’s team and earning the respect of those you lead. When you are in an adoptive relationship, every system must be simple and transparent for better understanding.
Implementing Adaptive Leadership
If you are interested in learning more about adaptive leadership approaches and implementing these skills in your organization, consider organizing training for your staff. Many training courses are available both in-person and online to help you build the best management skills possible for your modern workplace.
Read Also:
Reasons Why Personal Development Should Be a Priority?
6 Signs Of Poor Management That Can Lead To Loss in 2021
Develop Your Organizational Leadership Skills with an Associates of Science Degree
Is an online degree in business management worth it?
