Emotional intelligence is more essential for business success than any level of “intelligence” you may have as an Entrepreneur.
Many entrepreneurs go into business for themselves because they have a dream, a skill, and the know-how to make their business work for them. Those are all important qualities for any entrepreneur, but emotional intelligence is often left out of the equation, and it’s just as important as any hard skill.
Emotional intelligence is the ability to identify and understand your own emotions and the emotions in others. If you’ve ever been told that you can read people well, then you likely already have some amount of emotional intelligence.
Emotionally intelligent people are adept at putting themselves in other people’s shoes. They can see challenges from different perspectives, which ultimately helps them to solve complex problems.
Emotional Intelligence Improves Decision-Making
Decision making is a full-time job for any entrepreneur. You not only have to make decisions regarding your products and services, but also regarding the ways in which you run your business.
When emotions get in the way of running a business, it can often cloud your decision making. It’s not always easy to separate your emotions from the facts and logic of the situation, but increasing your emotional intelligence can simplify the process.
Avoid Impulsive Decisions
Speaking of decision-making, entrepreneurs are inherently more interested in risk-taking than the average person. Taking the first step as an entrepreneur is a risk in itself. Entrepreneurs tend to go with their gut and capitalize on opportunities as they arise.
However, this can also be considered as one of an entrepreneur’s biggest faults. Without understanding their own emotional intelligence, they’re less likely to take a step back and look at the full picture before moving forward with a decision.
It Helps You Communicate with Others
No entrepreneur is an island. At some point, you’re going to need to rely on the skills and expertise of others, whether it’s hiring an employee, outsourcing to a freelancer, or getting help from a mentor. In addition, sales will be the lifeblood of your business, and entrepreneurs need to have good networking skills and the ability to close sales if your business is going to survive.
Anytime you’re working with others, be it someone within your business or a customer, it’s important that you’re able to understand their perspective and position. These are what we consider the outward-facing mechanisms of emotional intelligence. They take the form of empathy and understanding, where you are able to comprehend where the other person is coming from, why they feel the way they do, and what you can do to meet them where they are.
When you can demonstrate empathy with your prospective customers, the other person is more likely to open up to you and contribute authenticity to the conversation. As a direct result, you are better able to understand their pain points and needs and adapt your products and services to cater to them. This means more sales for your business and more respect for your brand.