An entrepreneur’s leadership extends beyond titles, words, or promises. The essence of leadership lies in actions, which, over time, define a company’s culture and team dynamics. In the early stages of building a company or when the business is navigating challenging times, the eyes of the team are constantly on the entrepreneur. The behaviors displayed set a tone that reverberates throughout the organization, affecting everything from employee morale to productivity.

One of the most significant ways an entrepreneur can unintentionally damage their credibility is through a lack of consistency in actions. For instance, if an entrepreneur routinely arrives late and leaves early, it sends a message that contrasts starkly with the demands of the business. Especially in times of chaos or when the team is hustling to meet tight deadlines, such behavior not only conveys a lack of urgency but also signals a disconnect between the entrepreneur’s commitment and the expectations placed on the team. Employees observing this discrepancy may question why they are sacrificing their time and energy when their leader does not demonstrate the same level of dedication. This incongruity breeds resentment, distrust, and a diminished sense of loyalty.

Another way an entrepreneur can damage relationships with their team is by failing to follow through on commitments or promises. When a team member approaches the entrepreneur with a problem or suggestion and is told it will be looked into or acted upon, yet no follow-up occurs, it creates a cycle of disappointment and disengagement. Over time, this pattern leads employees to believe that their voices are not valued, causing them to withdraw and refrain from offering further insights. This lack of follow-through can have a snowball effect, eroding not only trust but also stifling innovation and proactive problem-solving within the team.

Inconsistency in communication also serves as a subtle, yet potent, way of sending the wrong message. Entrepreneurs who only share information selectively or neglect to communicate changes in plans or strategies effectively leave their teams operating in a state of uncertainty. When employees are kept in the dark, they may feel blindsided by sudden changes or decisions that impact their work. This sense of unpredictability can create anxiety and reduce their sense of control over their roles, leading to dissatisfaction and a lack of alignment with the company’s goals.

Micro-managing or, conversely, demonstrating complete indifference to ongoing projects can also have detrimental effects. If an entrepreneur frequently overrides team decisions or steps in to take control of tasks, it conveys a lack of trust in the team’s capabilities. On the flip side, failing to engage or check in at key milestones or on important initiatives indicates a lack of interest or accountability. Both extremes send conflicting messages and create a toxic work environment, stifling motivation and fostering feelings of inadequacy among team members.

An entrepreneur’s demeanor and reactions in times of crisis are also highly scrutinized by the team. When challenges arise, the entrepreneur’s response—whether panic, anger, apathy, or resilience—sets the emotional tone for the organization. An entrepreneur who fails to maintain composure or communicate clear direction during difficult times not only causes disarray but also erodes the team’s confidence in their leadership. A reactive or inconsistent leader leaves employees feeling unsettled and uncertain about the future, making it difficult for them to perform at their best.

Ultimately, the inactions or mis-actions of an entrepreneur speak volumes and leave a lasting impression. They chip away at the trust and loyalty necessary to maintain a cohesive, motivated, and high-performing team. Employees take cues from their leader’s behavior, and when the actions do not align with words or expectations, it creates confusion and disillusionment. To build and sustain a strong, committed team, an entrepreneur must be conscious of every action, ensuring it aligns with the values and culture they strive to instill. By consistently demonstrating dedication, reliability, transparency, and trust, an entrepreneur lays the groundwork for an environment where the team can thrive, knowing their leader is not just speaking, but living the message they preach.

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About the Author

With more than 40 years of experience in small business, restaurant, and franchise management, marketing, and development, Paul Segreto is a respected expert in the entrepreneurial world, dedicated to helping others achieve success. Whether you’re an aspiring or current entrepreneur in need of guidance, support, or simply a conversation, you can connect with Paul at paul@acceler8success.com.