There's a big difference between managing and leading and a business owner needs the ability to lead through understanding and inspiring people. Managers are crucial; management skills provide systems, rules and operating procedures for successful growth. Leadership skills provide direction and the ability to communicate it. Most successful business owners need to have both management and leadership skills. Unless a business owner has the wherewithal to hire managers, managing will remain and important task for that owner. But, leadership is more important because only the chief executive of the company can set the direction.

What should the business owner do to be the leader?

First establish a vision. Second communicate those elements to your clients, vendors and staff. Finally, keep hold of the big picture and continually bring people back to the essentials.