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Business

Common Leadership Styles You Should Know

Leadership is a hotly discussed topic among intellectuals and business circles. When running a simple towing service business, you will have employees looking and learning from your character and conduct. Leadership is adaptive and fluid. What works today might not work tomorrow. As leaders, we need to where we stand today and what we want to achieve tomorrow.

To help you in understanding the impact each type of leader has on a company, let’s explore common leadership styles.

Democratic Leadership

Democratic leadership is a commonly effective leadership style. The leader makes decisions based on the input of every team member. Although the leader makes the final call, it starts by keenly listening to the views of each member, to help make the final decision. Democratic leadership is one of the most common and effective leadership styles because it allows lower-level employees to exercise their authority and decide on what happens.

Autocratic Leadership

This is a rarely effective leadership style and it’s the inverse of democratic leadership. With this leadership style, the leader makes decisions without taking input from anyone who reports to them. Employees are neither consulted or considered before making a decision. They are expected to adhere to the decisions made. An example of a decision under this category is changing work hours and shifts.

Laissez-faire Leadership

This type of leadership is sometimes effective. It is a leadership style characterized by – ‘let them do’. In young startups, you might find this type of leadership style to be common among team members. Founders may put their full trust in their employees while they focus on other aspects of running their business. Although this type of leadership empowers employees through trust, it can hinder their development.

Strategic Leadership

Strategic leadership sits at the intersection of a company’s main operations and its growth opportunities. It works with accepting the burden of executive interests while ensuring current working conditions remain as stable as possible. It is a desired leadership style in many companies because strategic thinking supports different types of employee desires. However, leaders operating this way can set very dangerous precedence concerning the number of people they can support at any given time because everyone wants things to go their way.

Transformational Leadership

Transformational leadership is one that is focused on transforming and improving company operations. Employees are provided with a basic set of tasks and goals they have to complete at a given time, be it weekly, monthly, or yearly. However, their leader is always pushing them beyond their comfort zones. When starting a task with this type of leader, employees might get a list of tasks and goals to reach as well as a deadline for reaching them. While the goals might be simple at first, they become more challenging as the deadline nears as a company grows.

Transactional Leadership

Transactional leadership is fairly common today.  Managers reward their employees for the exact work they do. People only get bonuses for expectations met and exceeded. When starting a job with this type of leadership, you might receive an incentive at the start of the work to keep you motivated, as you work pon quickly mastering your duties. This leadership style works at establishing roles and responsibilities for each employee, but also encouraging bare minimums.

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Business

How to Distribute Equity for Your Startup

Your startup is gaining traction and you are bringing in your best team members and board of advisors to help you build your company, be it a towing company or business, eCommerce or even tech-based. You want to offer them equity in exchange for their time, talent, and services. However, to be honest, distributing equity in startups is not as easy as it sounds. The beauty of being a business owner is to constantly learn and grow, to a point of scaling your business. Our main focus in this guide is on startup equity.

Startup Equity

Startup equity refers to the degree of ownership that stakeholders have in a company. It refers to the values of shares that founders, investors, employees, and other stakeholders have. As a founder, you must ensure sharing ownership of your business is done with a lot of care and craft. One of the easiest ways of thinking about startup equity is in terms of a pie. A pie can be divided into a finite amount of pieces each piece is worth a certain value. When starting your business, you will own 100 percent of the pie, and this percentage will continue to shrink as others get hold of your company.

To distribute equity in your company, here are some basics to follow.

Founders and co-founders

If you are the sole founder of your company, it will be fairly straightforward to determine your stake. However, if you have a co-founder, determining equity becomes a complicated process. It has to be noted that 65 percent of startups fail because of a fallout between founders. To determine which founder gets what percentage, look at three key issues, which include; the risk each founder takes, level of commitment, and innovation. The ownership of the original idea should determine who gets what.

Employees

While building your startup, you will eventually start hiring a talented team who can help bring your business to the next level. Like many founders, you will be faced with tight budgets at the beginning, which will have an impact on your ability to offer competitive employee compensation. If this is the case, you may consider compensating your employees on both salaries and some form of equity. You will be guided by factors such as vesting schedule, type of shares awarded, and education, to determine which employee gets what percentage.

Investors

Those who invest in your business, whether angel investors, venture capitalists, friends, or family should receive a certain percentage of your business equity. When an investor puts money in your company, they are taking a financial risk with the hope of receiving a financial return. The amount of equity an investor gets will be depended on the amount they invest and the valuation of a company. If you decide to raise money for your company by following the fundraising route, the conversation about equity should take place during pitching.

You may also consider giving some equity to your advisors. A board of advisors will comprise of experts in your industry who provide strategic direction for your company. It is a common practice for this role to be performed in exchange for equity. Do due diligence to determine the percentage of equity you are willing to part with to your board of advisors.

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Business

Marketing Strategies to Improve Your Digital Presence

We will not get it wrong to state that a major part of today’s marketing strategy is mostly digital. When you set up a business such as roof repair, you bank a lot of digital marketing strategies to help you in driving the much-needed customers to convert them. Consumers and businesses alike are always online and on the go. However, when you are growing a business, it seems to be an ever-changing task because of the dynamic nature of the digital landscape. With a lot of things, you need to get right, how can you achieve and maintain an agile digital marketing strategy?

Understanding Marketing Strategy

It is important to understand how a marketing strategy differs from a digital marketing strategy before you can think of implementing one for your company. A marketing strategy is a plan for reaching a specific marketing-related goal, in a very focused and achievable way. It takes into full consideration what your business is currently doing well as well as what you are missing in regards to the objectives you set.

Depending on the scale of your business, your marketing strategy may include several moving parts each with different goals. With that put in place, working on your strategy can be a very challenging task. On the other hand, a digital marketing strategy is a plan that helps a business achieve specific digital goals through carefully selected online marketing channels such as paid, owned, and earned media.

To create an actionable digital marketing strategy, here are some things to keep in place.

Build your buyer personas

For any marketing strategy be it digital or not, you must have a good understanding of who you are marketing to. The best digital marketing strategies are those built upon detailed buyer personas, and your first step is to create them. Buyer personas are a representation of your ideal customers and can be created after researching, surveying, and interviewing the target audience of your business.

Craft your Goals

You need to identify your goals and digital marketing tools you will need to help you get to the level required. Whatever digital marketing goal you want to achieve, you must be able to measure the success of your strategy with the use of digital tools on your side. Additionally, make use of data and analytics to guide you to make the right and best decisions for your business.

Perform audit

You need to audit and plan your owned media campaigns. At the heart of digital marketing is owned media. Nearly every message of your brand can be classified as content – whether its product descriptions, infographics, blog posts, podcasts as well as social media posts. Content will help you to convert website visitors into leads and customers while at the same time improving the online presence of your brand. When your content is optimized for search engines, it can become very efficient in boosting your search and organic traffic.

You will also need to perform an audit on your existing content. Go ahead and make a list of your existing owned content and rank each item according to what has previously performed best to your current goals. You should also be able to identify gaps in your existing content. This can be facilitated by the buyer personas you have.