Most business owners realize that they will have to function as managers when they begin adding employees to their operation. What a lot of entrepreneurs don’t stop and consider is that leadership and management are two very different things. When you own your own business, it’s very important to learn to differentiate between management and leadership.

As a small business owner, your success or failure is closely tied to whether or not your employees see you as a leader. Leadership is not something that you can decide you have. Leadership is all about perception. If other people see leadership traits in you, and they willingly follow you, then you are a leader. If your employees only comply with your wishes because of your formal authority, then you may be a manager, but are not necessarily a leader.

If the people you hire only see you as a supervisor, their actions are likely to be dictated by the concept of compliance. They will do what they are told out of fear of losing their jobs. In a workplace spearheaded by someone seen as a leader, however, employees are much more likely to be engaged in their work. In this case, their actions are characterized by commitment to doing what is in the best interest of their organization.

As a manager, would you rather have employees who do what they are told to do because they have no choice, or do you want to lead a team of people who are committed to doing the right thing on behalf of the company and it’s customers? If you see that value in functioning as a leader, you have to look inside yourself and figure out what changes you might need to make in yourself.

Being seen as a leader is really all about how you treat other people. It’s important to consider what employees perceive as the most important traits in leaders. Employees consistently state that the best leaders cultivate environments of open communication in the workplace, that are characterized by collaboration. True leaders seek input from their employees and really listen to what they have to say.

In addition to paying attention to employees and making sure that they realize their contributions are valued, it’s vital for managers who want to be seen as leaders to set the right example for the people on their team. Leadership cannot be separated from actions. To be seen as an effective leader, your words and actions must be consistent, and they must demonstrate integrity.