The Emotionally Intelligent Entrepreneur

Entrepreneurship is often framed as a game of strategy. You focus on margins, markets, systems, and growth curves. All of those things are important but there’s something else that you should be focusing on. It’s a skill that you can improve. It’s emotional intelligence.

Every decision you make as an entrepreneur is filtered through your emotional state—whether you realize it or not. Have you made decisions in a state of panic? Have you avoided difficult conversations? Do your employees trust you and do you trust them?

Let’s start by looking at this question: What is emotional intelligence? According to Psychology Today, “Emotional intelligence refers to the ability to identify and manage one’s own emotions, as well as the emotions of others. Emotional intelligence is generally said to include a few skills: namely, emotional awareness, or the ability to identify and name one’s own emotions; the ability to harness those emotions and apply them to tasks like thinking and problem solving; and the ability to manage emotions, which includes both regulating one’s own emotions when necessary and helping others to do the same.”

So why is understanding and improving emotional intelligence important for an entrepreneur? Emotional intelligence often determines how well an entrepreneur handles stress, decision-making, and leadership.

Your level of emotional intelligence shows up when key decisions need to be made. What do you do when revenue drops unexpectedly? What about when a key employee under performs or a client is asking difficult questions?

In those moments, your emotional response becomes your strategy. You can rush a decision so you don’t have to worry about it any more. On the other hand, you can put off a decision until it’s too late and the decision is made for you. Emotional regulation allows you to maintain composure during uncertainty, setbacks, and financial pressure.

So when a key employee leaves you won’t make a hire out of panic. When you see a competitor adding new locations you can work through the anxiety and not feel the pressure to keep up with them. When you’re angry with a supplier or a 1099 you won’t cut off or harm a relationship while you’re in a state of anger.

Suzy Welch - a writer, speaker, and professor, introduced the 10-10-10 rule. How will you feel about the decision you’re making in 10 minutes, 10 months, and 10 years. Slow down, take a breath, and make the right decision for your company.

Empathy in Leadership
It’s important to understand employees, partners, and customers. This helps build trust and loyalty. You can’t grow a business by yourself. Empathy can help in several ways. You may not have to replace a key employee if you can see that they’re burned out and address it in a useful and positive way.

We’re not saying that every decision needs to be made based on emotion (or lack of emotion) only. Balancing emotional reactions with disciplined, strategic thinking is important. We’re saying it’s important to understand your own emotional triggers, fears, and biases when making decisions.

Are you emotionally intelligent? Here are some questions you can ask yourself:

Are you impulsive?

Do you pick up on others' body language?

Can you remain calm while you’re being challenged?

Are you able to accept other people’s emotions?

Do you find yourself saying or thinking “I wish I wouldn’t have said that”?

Emotional intelligence is a skill that you can work on and improve for the betterment of your business.