What makes a good leader?

Ask any entrepreneur and you'll likely get different (though, quite similar) answers. You may have heard that a good leader is strong, decisive, confident and honest. Or maybe a “good” leader for you is optimistic, creative, and forward-thinking.

After more than 20 years as a CEO, I can tell you that my definition of “leader” has evolved over time. Dealing with challenges, resolving personnel conflicts, mistakes and overcoming burnout will do this to you. So while I don't claim to have a textbook definition of leadership, I can share what I consider to be essential when it comes to being a positive and compassionate leader. And I've learned that entrepreneurial leadership permeates every sector of business.

Related: 50 rules to be a great leader

1. Establish intentional habits

A leader is someone who is intentional about it HABITS. Whether you're part of the “get up and grind” crowd or prefer a more leisurely pace, you've thought about how you manage your day, your health and your business.

As an entrepreneur, my routine is everything – not because I need set blocks of time, but because, if I didn't prioritize, what's important to me would fall by the wayside. By establishing intentional habits, I know I've created time for my physical health, mental health, family, and leisure time in addition to my business responsibilities.

Without purpose, we risk falling victim to bad habits. distractions and avoidance becomes our downfall. A great leader knows his priorities, directs energy to the activities that can have the greatest impact, and manages their time, not the other way around.

2. Practice radical honesty

I first learned about radical honesty at Brad Blanton's book. And at first, I really struggled with it. I realized how often I used “little white lies” excuses to ease my discomfort and avoid conflict. But that wasn't doing me or my team any favors.

Through practice, I learned that radical honesty is about prioritizing transparency even when it's uncomfortable. This does not mean to be brutally honest (you can tell the truth without hurting others), but keeping communication open and vulnerability. Radical honesty leads to better conflict resolution and further refinement of your character as a leader. It also builds trust with your team.

Many business owners believe that you have to be direct or even harsh to be effective. In reality, a great leader speaks the truth with compassion while seeking to understand the perspectives of those around him. For me, radical honesty is essential if you want to resolve conflict the right way, not the easy way.

Related: Don't lie to your team – and yourself. Try radical honesty instead.

3. Generosity over personal gain

As business owners, many of us are drawn to the lure of financial gain. And while that's not inherently bad, setting your tunnel vision solely on profit can blind you to more personally rewarding and soul-giving opportunities.

I truly believe that what you give pays back in dividends, not always in financial rewards, but in personal development, friendships and life experiences. A great leader understands this GENEROSITY it is more important and influential than just financial income.

Give it to your community, your team, your friends and your family. Whether it's through service, donations, sharing knowledge, or providing career advancement, you'll feel a stronger sense of purpose than being a profitable entrepreneur.

4. Handle challenges with compassion

A leader is someone who does not shy away from challenges. At the same time, a leader does not approach challenges with aggressive assertiveness, but with a compassionate and thoughtful approach that considers multiple factors and perspectives. Resolving conflicts in this way is difficult, but it is the measure of a goal, conscious leader.

For one, a great leader doesn't spoil other people's perspectives. They take the time to listen to input, consider information and proceed with what is right for the organization as a whole. Sometimes, it means knowing when to say no—even to yourself.

At the same time, a leader does not beat himself up over past failures. They consider every challenge as one opportunity to learnovercome and grow. It's much more productive to channel optimistic energy into your furniture endeavors than to dwell on the past.

Leadership means having compassion for others and yourself, even when making decisions is difficult and mistakes are inevitable.

Related: 5 Common Staffing Problems and How to Address Them

5. Know your limits

A leader is not infallible. You have abilities, but you also have limits. A great leader can recognize the capabilities of others and know when to move away from activities that no longer serve them.

This does not mean delegating just to lighten your workload, but to know your limits and identify your complement in others. Very often, there are people in your mindset willing and able to step up and try their money.

As a CEO, I had to find my “no person.” This is the person who tells me when I've crossed my path and when it's time for it assign responsibility for the most equipped members of the team. It keeps me from getting bogged down in the weeds instead of focusing on the priorities that matter most to my company at a high level.

A leader knows what they are good at, what they are not so good at, and when it is time to make room for others to step in.

Every leader is different. And while the essentials of honesty, integrity and team management come into play, the exact skills will vary from person to person. I encourage every entrepreneur to explore their own leadership style and define their “essentials” – the non-negotiables, if you will. Recognize that these may change over time, but leading with purpose is always the way forward to maximize your impact.