1.5.5 Business choices & 1.5.6 Moving from entrepreneur to leader GapFill

The value of the next best alternative, which has been given up, is    a profit a dividend a loss an opportunity  cost.  For example, a business has an opportunity to    increase expand enlarge broaden its operation in Europe or to open a new outlet in the UK.  It cannot afford to do both, so there will be one option which will not happen.  Say, for example, the owners choose to open the UK outlet, the expansion into Europe option would have carried with it a   finance loss profit cash , so not getting that profit is the opportunity cost. 

In business, there are many decisions and choices that need to be made and they cannot always be fulfilled. If a business has more staff, there will be lower profits and lower    pounds dividends euros pennies  to share among the shareholders. This is called a trade-off.  The main trade-off in business is between profit and  ethical morality right value  decisions.  To be ethical means to pay fair wages, to check the supply chain to make sure there is no forced or slave labour, not to pollute and to use more green energy.  All these ethical decisions will increase   money cash profits costs , which will decrease profits. 

There are other decisions which will carry a trade-off; for example, the choice of market    field desk reach research  method, the promotional tools used and the  pricing dividends costing profits  strategies used.  Along the way, there will need to be compromises so that the business can move forwards and continue to be successful. 

One of the difficulties of moving from entrepreneur to  leader revenue business other  is the ability to develop emotional intelligence.

There are essentially four strands to the theory of emotional intelligence as it relates to good business leaders. 

The first is self-   mindful conscious  hatred awareness , and this means that the entrepreneur needs to have   self-awareness selfishness self-confidence self-loathing and faith in their own abilities in order to move towards being a great leader.  It will also be an advantage if the entrepreneur is aware of all their strengths and weaknesses as this will help them to develop their personal skills to help the business to become more successful.

The second is  social office room park  awareness, and this means having an understanding of the  emotions money wants needs  of others.  This includes being able to listen effectively to the suggestions and concerns of staff.  This will help to resolve any conflicts before they become serious.  This includes being able to communicate well with staff and explain any new policies or procedures.  

The third is self-   finance management administration revenue , and this means that the entrepreneur needs to be in control of their emotions and feelings. It is never wise to overshare in a professional setting or for the entrepreneur to lose their temper.  This also includes the ability to adapt and change, and this is important in dynamic markets. 

The last strand is the social or  relationship profit needs services  management.  Great leaders are able to motivate themselves as well as inspire others, and act as an excellent professional role model to new staff. Entrepreneurs that can work in teams and collaborate on projects will in time become effective leaders.