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What is your leadership style and is it really appropriate for your home business? Find out below.

If you run a small home business with several employees, how do you know if you are treating them right, and how do you know if that leadership style is helping your business or not?

Let’s see what the main leadership styles are, so you can determine which one you’re currently applying and if you need to replace it with a new one or adapt each one to a certain situation.

Image result for leadershipLeadership Styles Leadership Style #1: Authoritarian style

This is a very top-bottom leadership style, and it means you as the leader give all the orders and nobody should do anything without asking you first – because, after all, you know best. This also means you don’t take advice from anyone and sometimes you might even yell at people to get them to do their job right, which can be “regarded as bossing people around”. The authoritarian style works best in crisis situations because it can provide a clear cut vision and quick response to solve the problem.

Leadership Style #2: Democratic style

This leadership style refers to a participate type of leadership, which means your employees are part of the decision making process. They can take decisions regarding your business without being dependent on you. This suggests that you put a lot of trust in these employees and empower them to take decisions in your place. You don’t have so much impact on the business as when using the authoritarian leadership style, but if you teach your employees to think the same way you do about your business, then you won’t need to.

Leadership Style #3: Free reign style

This leadership style implies that you let give your employees certain area of responsibility and then you let them do what they think it’s best, giving them full autonomy to run their departments or areas of the business. This could lead to incompatibilities with your vision about the company, but it could also spark a lot of innovation in the company and prepare it better for the future.

Leadership Style #4: Bureaucratic style

This leadership style is usually used in bigger companies and in companies where employee safety is very important so they have to follow strict guidelines and policies.

Leadership Style #5: Charismatic style

The leader using charismatic style should be enthusiastic and inspiring to his employees. He leads them by example and the employees are generally very loyal this kind of leader. A charismatic leader may or may not know a lot about how to actually run the business, but he inspires his people to do great things and run the company for him.

Now that you’ve seen these 5 leadership styles, you can decide on your own leadership style and use it accordingly in your own home business for maximum effectiveness in growing your business.