10 Things to Remember When Applying For a Business Loan

Precision and planning are the key stepping stones when you are planning to take a loan for your new start up or for business expansion. Different banks will have a different set of criteria and each banks’ requirements will vary. Also, while business loans are unsecured loans by nature, some financial institutions might ask you to provide some sort of collateral from your end as a guarantee. There are numerous business loans available in the market and these business loans can be used for different reasons such as purchasing equipments, vehicles or building inventory, among other things.

Just having a brilliant business idea will not help you go all the way. Your ideas will need adequate capital for successful execution. Often many startups fail to gain traction within the early years owing to the lack of financing. So, here are a few tips and pointers to help you boost your chances of getting that much-needed business loan sanctioned.

1. Prepare a business plan

The way you envision your business taking shape is the key to getting a business loan successfully. Every financial institution will ask you to submit a business plan to gain insight into how you want your business to grow and thrive.  Work on creating an attractive business plan, which will capture the interest of banks. Your business plan must reflect the confidence and faith you have in taking your business forward. Emphasize on the components of your business you wish to improve upon and what are the measures you are taking or will be taking to achieve successful execution. The purpose of the loan should be clearly elucidated.

However, it is not necessary for your business plan to be very elaborate. Your plan can be lean, crisp and short but complete with all the necessary business details along with a summarization of the company, a financial model, what your company envisages, products, the team, and how you plan to utilize the loan amount.

2. Ensure your paperwork is in place

The importance of having your paperwork in place cannot be stressed upon adequately. If you do not have proper documentation in place, the bank can deny you the loan. This fact holds true no matter whether you are applying for a personal loan for medical expenses or a business loan to expand your manufacturing operations. It is imperative that your documents are accurate and true to facts. All your supporting documents have to be spot on, as the banks seek strong security for the loan meted out. If the bank needs collateral, you need to furnish documents that will prove your ownership of the assets you are showing as collateral. If you are showing your own property as collateral, you need to endorse your ownership over the property with the title deed, tax receipts, and possession certificate among other documents. Documents supporting your personal identity like passport, driver’s license, phone bill, PAN card etc. will be needed. Also, if the bank requires a guarantor, you will need to provide the required documents for the guarantor as well.

If the bank needs collateral, you need to furnish documents that will prove your ownership of the assets you are showing as collateral. If you are showing your own property as collateral, you need to endorse your ownership over the property with the title deed, tax receipts, and possession certificate among other documents. Documents supporting your personal identity like passport, driver’s license, phone bill, PAN card etc. will be needed. Also, if the bank requires a guarantor, you will need to provide the required documents for the guarantor as well.

In order to gauge your creditworthiness, banks will require all documents related to your credit history, whether personal or professional. So be prepared to furnish your bank statements over the previous years.

Also, some other important business documents include SSI registration, Board resolution, project report, power allocation, credit information report, IT and ST returns for 2 years, partnership deed if your company is run in partnership etc.

3. Check the eligibility for business loans

As part of your preliminary research, you must check the eligibility criteria for applying for business loans, so that you can plan your business expansion in advance. Although the eligibility criteria vary from bank to bank, here are a few basic ones:

• You should own the business
• You should be aged between 21 years and 65 years
• The business should be 3 years old in the least
• The annual turnover of your business should be $75000
• The minimum profit per annum should be at least $3000
• ITR statements for the past 3 years are needed

4. Be confident of the collateral

As stated above, all banks do not require collaterals, as business loans are largely unsecured by nature. However, you must be prepared in advance when you are preparing to approach banks for business loans. Do you something tangible to show as collateral? Will it be adequate security for the loan you are seeking? Do you have all the documents in place to endorse the collateral? Have you calculated the value of the collateral? Is the collateral worth the risk? These are a few questions you need to answer before going ahead with the application for your business loan.

5. Ensure that all your business statements are reviewed

One of the essential pointers for acquiring a business loan is to make sure that whatever documents you are providing have no loopholes in them. One of the most important documents is the balance sheet.

The balance sheet enlists your latest assets, capital and liabilities. Hence your profit and loss statements over the last three years are crucial. Be systematic with keeping records. Just to be confident with your papers, and if required get your statements checked by an analyst or a chartered accountant to ensure they are sound and error-free. It is especially important to get your statements audited if the scale of your business is larger.

6. Assess the needs of your business and seek finance accordingly

As an entrepreneur, you must have the foresight to judge your business needs. If the loan you are seeking is to meet short-term business goals, you can seek alternate financing options. Study the financing options in front of you. Assess and compare the interest rates offered and choose accordingly.

7. Judge your capacity to repay the loan

Before you decide on the amount of loan you need, you must judge your capacity to repay the loan. Talk to a financial consultant if required and learn how much your EMI will be and assess your repayment capability in accordance with it. Remember banks will only loan money to individuals or companies who have a good credit history and will not default on the EMI.

Alternately, you can use an EMI calculator to find out the exact EMI you will need to repay. Chalk your business plan in accordance with it. If required, take small steps. Take small loans to meet specific goals and repay them comfortably to ensure a steady pace of business growth rather than taking an excessive burden and putting your creditworthiness at risk.

8. Shop around to choose the best bank

The bank or financial institution you choose to take the loan from is of extreme significance. Hence do not be hasty with your decision when choosing the bank. Extensive research is crucial. Study the interest rates offered by different banks and the tenure.

Also, if you have friends who have taken loans from various institutions, talk to them about their experiences when shopping for business loans. Know more about the goodwill of the institutions you have zeroed in upon and then read up on their guidelines and policies so that you know what to expect and what to say when you approach them. When you do your homework, it will surely add to your confidence when you present your business proposal.

9. Insurance

While the bank will check your personal credit history for ensuring the security of the loan meted out, it might also need information relating to your insurance policies, banks need to be assured that if anything were to happen to the key partners, the loan will be repaid timely.

This is especially checked for new organizations, which are more dependent on the founders and are not steady yet. So etch your business plan accordingly so that the banks find no loopholes.

10. Assess other financing options

With the rise in business startups all over the world, there is no dearth of loan options for fresh entrepreneurs. When you are stepping into the business loan market, you will see that there are is a myriad of options before you. You do not necessarily have to approach a bank or NBFCs for a loan. There is peer to peer lending that has recently been gaining traction.

There are several private organizations that specifically cater to the startup companies which seek financing. Private and individual lenders are also feasible options. However, it is better that you learn about the credibility of theses lenders before taking the plunge. Use your time efficiently to get hold of the best deals for your business needs.

Conclusion

Preparing a business plan and approaching financial institutions for a loan is not an easy task. It takes a lot of foresight to learn the needs of the hour and prepare a business plan that will capture the interest of banks as a project worth putting their money into. Be smart and crisp, and trim any unnecessary costs to present a plan that cannot be turned down by lenders

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10 Tips to Prepare Yourself for Graduation Day

Graduation day is an exciting time, but you want to make sure you plan ahead so you can truly enjoy it. Here are ten tips to make your graduation day go smoothly!

1. Keep up with your schoolwork

First things first, if you want to enjoy your big graduation day, make sure you do the work to get there! It’s easy to get caught up in college applications or just celebrating your senior year with friends, but make sure you’re still doing your schoolwork and keeping your grades up.

If you need motivation or a helping hand, you can look to parents, teachers, or your guidance counselor for advice and assistance. Plus, there are tons of great organizations devoted to helping students reach their dream of graduating and heading to a better college! Here’s an example of heart-touching story of Christopher Yanov who helped many such students get scholarships and transformed their lives. You can’t expect a better helping hand than this.

2. Plan for the future

Though it may sometimes seem like high school is going to last forever, senior year will be over before you know it and you need to have a plan for life after graduation.  Whether that means going off to college, joining the workforce or travelling the world, you need to start planning for it before graduation.

If you are headed to college, make sure you have your finances in order, too, from filling out FAFSA to applying for scholarships. Last year, in 2015, these 7 students cracked Gates Scholarships of more than $500,000 each. When things are already planned out, you will feel way better, when you walk across that stage to get your diploma as you have done everything to make sure your college dream can become a reality!

3. Create a schedule

From dealing with college applications to planning the day of your graduation, you have a lot of things to organize during your senior year. To make sure you stay on track, draw up a schedule for yourself.  If you have scholarship or school application deadlines, add them to your calendar.

If you need to request graduation tickets or order your cap and gown by a particular time, put those on the calendar too. Even for things that might not have specific deadlines, it’s a good idea to come up with some dates to aim for, just to keep yourself on track. If you do everything on your calendar in time, your graduation day will be a piece of cake!

4. Get senior pictures

Senior pictures aren’t just for the yearbook, they’re the photos your parents will frame and you’ll want to give copies of to your friends. Lots of people choose to go to a professional photographer to do a special photo shoot for their senior year. You can take formal pictures as well as more casual ones like snaps of you doing your favorite activity, from football to ballet to hanging out with your family dog.

Just be sure to schedule your photos early, because lots of other people will want to take their senior pictures around the same time. Plus, you need to make sure you get them in time to get them in the yearbook and have copies ready to share with friends.

5. Send announcements

It’s a tradition to send graduation announcements out a few months before the big day to let everyone, from your grandparents to your neighbors, know about the big day. It’s basically a formal way for your parents to brag about you. You’ll want to order invitations in advance to make sure you have time to send them out well in advance of your actual graduation day.

6. Invite friends and relatives

For an occasion as important as graduation, you want to have your closest friends and family in attendance. Schools often have a policy where they reserve a couple of tickets for each student right off the bat, but you may be able to request a few additional tickets if you get around to it early enough. Once you’ve made sure there will be seats available go ahead and invite your friends and relatives.

7. Order your cap and gown

Every graduation picture you see features happy students properly wearing gowns and tossing their caps into the air. If you want to be one of them, though, you have to remember to order your cap and gown in time for the ceremony. Usually a salesperson will come to your school with order forms or you’ll receive information from the school about how to order them online.

This can also be a good time to get a class ring or any other graduation paraphernalia you might want. Or, if the cost of the cap and gown are a little steep for you, there are also options to rent or buy used.

8. Pick your outfit

While it’s not quite prom, graduation is still an important event and one definitely worth dressing up for! You’ll be walking across a stage, having your picture taken and spending time with all of your closest friends and family, so you want to find a nice looking outfit for the occasion.

Guys usually wear a suit or nice pants with a shirt, and girls usually opt for a nice dress, though, of course, you should wear whatever you feel comfortable in. Also, be sure to plan ahead for the weather – graduation can be really hot, especially if it is an outdoor ceremony, so try to pick something light.

9. Get gifts for teachers

Yes, graduation is supposed to be about celebrating all of your hard work, but it’s also a time to recognize your teachers for helping you along the way. Usually the last day or so of classes is a good time to give something to teachers to show your appreciation.

If you’re strapped for cash, you can just write a nice card to a few of your favorite teachers or bake them some cookies!  Just be sure to think about it in advance or before you know it you’ll be done with classes and it will be too late!

10. Plan your celebration!

Whether you just want to go out for a nice dinner with your family after the ceremony or you want a graduation party full of friends (or both!), be sure you make your plans in advance. Since there will likely be a lot of people planning graduation celebrations around the same time, you’ll need to start planning early.

If you want a graduation party, plan it for a weekend before or after graduation—people will have too much going on during graduation weekend itself! For getting dinner the night of graduation, remember that most other graduates will have the same idea, so you want to get a reservation at your favorite restaurant before it’s all filled up!

Graduation is an important and exciting day – just be sure to get ready for it in advance so you can enjoy it, when the day comes. After all, you are marking the end of over a decade of grade school – that’s going to take some celebrating!

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7 Secret Techniques to Cope with Stress at Work

In this day and age, almost everybody experience some stress at work. In fact, unhealthy working is the main reason for stress these days. If you feel like work stress is getting the best of you, here are some great tips, to help you deal with the pressure!

1.Take breaks

Most workplaces allow their workers regular breaks throughout the day. In fact, studies have shown that taking breaks can actually boost productivity levels. So, if you ever feel pressured to skip your breaks, just remember that your time may actually be better spent relaxing. You could take a walk around the block, call a friend, grab a coffee, or anything else that will leave you feeling rejuvenated and ready to get back to work.

2. Practice relaxation techniques

Though taking your breaks is a great way to de-stress during the work day, sometimes you need to calm down even when you can’t get away from your desk.  For those instances, you may well want to learn some relaxation techniques, you can use without going anywhere. Some great examples to try are deep breathing, progressive muscle relaxation, or a chanting mantra. Or, adding some tabletop plants.

Another option is exercise, which science has shown is a great way to decrease stress. Even if you can’t fit in time for the gym outside of work, there are plenty of small exercises you can do just at your desk.  Try adding a few of these techniques to your schedule and you should see (and feel!) the results almost immediately.

3. Take time to recharge outside of work

If taking your breaks and practicing relaxation techniques at your desk still isn’t enough, make sure you aren’t adding extra stress to your plate with your outside-of-work activities.  Are you stretching yourself by helping out with your kid’s PTA? What about stressing yourself out with a house remodel? These kinds of pressures outside of work can add to an already stressful situation, making your 9 to 5 feel even busier and more demanding than it is. Take a good hard look at the commitments you’ve agreed to and see if there are any you could cut down on to make things a little easier for yourself.

Of course, that’s not to say that you should get rid of all of your non-work activities. In fact, though you want to cut down on things that add to your workload, you should increase the time you spend doing things that help you relieve stress. From volunteering to shooting hoops with the guys, these kinds of extracurricular activities have been shown to lower stress levels, changing both your work and home life for the better.

4. Develop and maintain your support networks

Sometimes you don’t have to change anything about the amount of work you have at home or at your job, to feel like things are a little easier to deal with. Just having a strong support network of friends and family is a huge help in dealing with stress. Socializing allows you to take your mind off things, and having a friend or family member to confide in gives you a way to vent and let off some of your stress.

So, if you’re putting off socializing because you’re stressed out with work, you may actually be making things harder for yourself! Instead, consider reaching out to your friends for something as simple as grabbing a cup of coffee or some drinks after work—it may be just the break from work that your nerves needed!

5. Create a relaxing space for yourself at home

A lot of the stress you are experiencing at work could be due to the atmosphere of your workplace. If you’re in a bland, gray cubicle you’re likely to feel far more disheartened, than if you’ve added some decoration to make your office feel like it really belongs to you.

Similarly, if you work from home some or all of the time, make sure you have a space designated just for that purpose, somewhere where your family members won’t bother you and you are able to concentrate in comfort. Get yourself a man cave to escape into, at home or just a more nicely decorated cubicle and you’ll see your stress levels decline in no time.

6. Avoid stressors or come up with healthier responses

If you’ve looked outside of work for possible stressors and don’t see anything problematic there, it may be time to turn your eye inward. Are there potential stressors at work that aren’t necessary to doing your job? For example, if you’ve taken on the job of coordinating birthday parties for people at work on top of your usual duties, perhaps it’s time to hand that off to someone else.

Or maybe there’s a particular person at work who just gets your hackles up. If Jake from Marketing always manages to say something to put you off your game, try avoiding him as much as possible.  If you cut out the most stressful parts (or people) from your job, it might suddenly seem a lot more bearable!

Of course, sometimes cutting out the stressful parts of your work simply isn’t possible. In that case, there are still things you can do to improve your situation. Instead of responding to those stressors, whatever they are, by immediately feeling tense, anxious or angry, practice new responses that will be better for your mood and your health. This is a great place to try some of those relaxation exercises I mentioned earlier!

7. Discuss the situation with your supervisor

If you’ve tried all of these techniques for dealing with and decreasing stress at work and you still feel like the pressure is too much, it may well be time for you to speak to your supervisor. See if there is anything your boss can do to change your workload or responsibilities to make things more manageable on your end.  Just plan ahead to make sure you are approaching your boss in the best way and you could cut your stress levels down enormously.

Lots of people get so used to feeling stressed out about work that they start to think that it’s just the way things have to be, but that’s simply not the case!  Almost any situation can be made less stressful using the right techniques. You may have to try a few different things before you figure out what works for you, but don’t give up!

Where there’s a will, there’s a way!

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How to Start Working for Yourself and Become Your Own Boss

Starting your own business can be a scary thing, but it can also be one of the most rewarding experiences of your life. Obviously, there is going to be a lot of hard work to do at first, but if you put everything you have into it, you will enjoy success.

The best part is, you will be working for yourself and not contributing to some big corporation. Before you can start your own business, there are a lot of things that need to be considered, including the benefits of being your own boss and how to succeed as an entrepreneur.

Benefits of Being Your Own Boss

When one thinks about being their own boss, one of the first things that comes to mind is the freedom they will have to set their own hours and work with no one hovering over their shoulder all the time. Of course, there are several other benefits as well. For one thing, with the exception of taxes and other expenses, you get to keep all of the profits. Here are a few more benefits to being your own boss.

• You Save Money – Once you work for yourself, you will likely find that you are spending a lot less money on little unproductive things. For one thing, you will no longer have any commuting expenses. You can also claim some of your household bills on your taxes, such as phone, Internet and electricity. If you have children, you no longer have to worry about spending money on daycare.

• You have More Variety in Your Work – When you work at a traditional job, you often end up with repetitive tasks and the work can get pretty menial. When you work for yourself, you have more chances for variety in the work that you do. This is particularly true if you are a freelancer, because you will likely have a few clients who assign various types of projects.

• No Drama with Co-Workers – Even though you may find yourself isolated at times, you will be free of drama with co-workers. You won’t have to listen to gossip, music that others are listening to, cell phone talkers etc. You can still hang out with those who you like, but you don’t have to bother with those who annoy you.

How to Succeed in Being Your Own Boss

The following are some things that you need to consider before you start any type of business. Being your own boss is rewarding, but you need to know how to get off on the right foot.

• Know Your Target Audience – The first thing to do is to figure out who your target audience is. These are the people who are going to buy your products and/or services (besides your family and friends). Learn who your customers are, the size of your market, why they need your product or service etc. You need to conduct the market research to see what your competitors offer.

• Create a Digital Presence – Once you have decided on your target audience, it is time to start marketing to them. In order to do this, you need to have a great digital presence. You don’t have to spend a lot of money to do this. In fact, there are free tools to make a website from scratch to really get you noticed online.

• Be Prepared for Anything – You need to make sure that you are always prepared for the worst-case scenario and have a Plan B. Hopefully, things will go smoothly. But just in case, plan for every problem that could arise so you are fully prepared.

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How To Select The Best T-Shirt For Yourself

T-shirts are considered our everyday dress, both casual and trendy. However, most people are not aware of the fact that their history goes back about a hundred years.

As the name implies, these shirts were named for their “T” shape. Though we have given them a more casual nature these days, they were previously used as undershirts to absorb sweat, doors, and dust, preventing the outer clothes from being affected by perspiration.

As the world entered the industrial revolution, more and more men started engaging in activities that generated sweat and grime on the body, such as underground mining and construction. The traditional rough-and-tough undershirts were made into a softer cotton material so that the workers felt comfortable while wearing it under their clothing. Over time, the material got softer and the quality got higher — i.e. from undershirts to day-to-day shirts.

How to choose the best t-shirt depends on the type you want and the body figure you have. Let’s have a look at some of the specifications of t-shirts around the globe.

The Types of T-Shirts:

The two popular necklines for t-shirts are the crew and the v-neck. Both of these have their own advantages and shortcomings that can help you in deciding which one your body is suited to.

The crew collar is common and the look is ageless. Men with good physiques look amazing in this collar because the broader look it gives shows off those broad shoulders and body tone. Men with slender necks tend to choose this type as it covers up their neck and adds balance to their face.

On the other hand, v-necks are considered a tad more informal, representing both casualness and a sleek sense of style. Since the necks go deep, men that want to show off their chests may want to try this neckline. Also, men that have broader faces or are shorter look better in v-necks because both these features are balanced by the shirt’s shape as it elongates the body.

The Colors of T-Shirts:

• If you’re fair-skinned, white will look amazing on you and can easily be complimented with any colored pants. However, if you’re darker, the white of the shirt may not compliment your skin tone.
• Gray has a tendency of not only giving off a casual look, but also adding a bit of a smoother touch. However, if you’re a sweaty person, keep in mind that sweat stains are more obvious on gray and this might lead to embarrassment.
• A black t-shirt is sleek and is one color that almost anyone can pull off easily. Whether you like the gothic look or you want a touch of elegance in your closet, black can give you both of these effects. Pair it with jeans to execute a classy look.
• Navy blue is another color that most men include in their wardrobe. This masculine color looks great for a night out because its casual yet manly look can make you the highlight of the show.
• Apart from these common colors, you can try reds or greens or lighter shades, but all that depends on your skin tone. Darker skin tones can’t pull off light blue as well, and fairer tones can look weird in bright yellow. Your best shot is to try them on in the changing room and get an outsider’s opinion.

General Rules to Follow:

T-shirts should not be too tight because that will look a little too edgy and can make your breathing difficult. On the other hand, don’t wear them too loose or you risk a very informal style. The length should compliment your body by not being too short or too far below your hips. Sleeves should cover about half your upper arm.

Remember that what you wear is less important than how you wear it. Your general attitude, the way you carry yourself, and your personality all add a lot to your overall appearance.

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6 Reasons Why Forty is the New Thirty!

Already forty? Or on your way there? Gear up for the best decade of your life so far. Life is what we make it and this new outlook shows people living the best years of their lives at forty onwards. I’m doing it and I’m going to share how you can get on track and enjoy the next amazing decades of life.

1. Stay motivated

I believe there is a basic life formula.

1-20 years old: You are acquiring a basic skill set.

20-40 years old: You are applying those skills to fit in and gain some life experience.

40-60 years old: You learn how to proactively apply those skills to create something that excites you and motivates you to build your most extraordinary life!

You just have to start. That’s the big tip. You’re never ever too old.

2. Higher levels of confidence

By the time you’ve hit 40, you’ve experienced a fair share of what life can dish out and you’ve navigated it successfully. The more life experience you have, the higher your confidence grows, and it’s the same in any trade. So many successful entrepreneurs and high profile people express that their forties were their most productive years. They’re the master of their own mind and more secure in knowing who they are, what they want, and faith they can do it. Mature unstoppable confidence is an amazing asset. A 40+ super power!

3. See time as your ally, not your enemy

As we get older, we tend to act as if we don’t have any time; the clock is working against us. So we don’t make good use of time. It’s a bad habit to hang on to, and this kind of pessimistic thinking is contagious. So snap out of it, start aligning yourself with time, and make it your ally. Start planning long term and utilize every moment you’ve got and be grateful for it! It’s going to lead you towards your goal.

4. Operate with excitement

When a person is operating with excitement, it means you’re on track; you’re backing decisions and actions that are provoking a positive reaction within you. That’s your yardstick to keep going! When you’re excited your ability to adapt and grow is stronger than you imagine. It doesn’t take that long to really learn something, but as we get older, we tend to settle for our regular routine. Stop it. Get excited and get out there!

You’ve got to operate with vision, look ahead ten years; it’s never too late to live the life of your dreams. Hold fast to that goal and invigorate yourself with that energy, and you will attract the best results at ANY age!

5. Keep working on yourself

When you’re continually expanding and growing as a person, you are evolving, learning and constantly improving who you are. The best benefit of all is the joy of life that positive energy brings. Expanding and growing will always deliver that feeling to you.

If given the choice on whether to:

A) Be a joyful, fulfilled person who is constantly growing and evolving into the best version of you. OR

B) Be stagnant, disgruntled, and constantly playing victim to circumstances around them…

I’m always going to choose A. It’s just good sense!

6. Stay inspired

I absolutely envelop this philosophy. It is vital to constantly keep ourselves excited and inspired. For me, this means
a lifestyle full of travel, an open mind, and enigmatic life experiences but also on a daily level, I ensure I create the freedom to allow daily yoga practice, exercise, health and wellbeing. The transitions to build this life for myself was hard, but it was my choice, and if you’re steadfast in your decision, you will always find your feet again. It is totally worth it!

You are never too old to take a risk. Live your passion. Be true and authentic. Change today. Embrace it. Forty rocks!

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7 Traits of Highly Effective Leaders In The 21st Century

Whether you believe it or not, it takes more than just hard work to become a successful leader. The best leaders in the world, are able to use their passion to drive an organization. Your passion should absolutely be a part of who you are as a leader, but you should lead with your head as well as your heart.

People already know the more common leadership traits. Leaders have a guiding vision, are passionate and possess integrity. There are also plenty of other leadership traits, including some traits that were once thought of as being weaknesses.

You can grow and develop these traits to become a better leader and further your career; whether at home, at work, in your community or in your overall life.

Effective Leaders are Empathic

Empathy is simply the ability to understand how people feel and also share in those feelings. Empathy is important in a workplace, because it allows you handle relationships and manage conflicts. Empathy is also important because it allows you to connect with your customers and understand them.

People don’t like to be analyzed; they want to be understood. Being empathic means a leader functions better within the business and can also use their empathy to drive the business.

Effective Leaders are Optimistic

When people think of optimism they think of hopefulness. Optimism is also the ability to have confidence that you will succeed. It’s not good to be blindly optimistic and believe everything will succeed with no basis, but optimism gives leaders the power to inspire employees and drive them forward.

Effective Leaders Forgive

No one likes it when their boss refuses to let their mistakes go. You need to give your employees the chance to make risks and let them know that you won’t hold their mistakes against them. Not forgiving your employees when they make mistakes, kills their creativity and motivation.

It also stops them from presenting new ideas in case something goes wrong. You need to forgive mistakes and nurture the creativity of your team, so that you can inspire them to come back with new ideas and stay motivated.

Effective Leaders are Altruistic

Being altruistic means you care about other people and their success. In business this means that you want people you work with to do better, feel better and perform better. No man (or woman) is an island and you should avoid stealing all the credit.

Altruistic people understand that everyone looks better, when everyone looks good. Altruism is a vital leadership quality, but not something that people would typically associate with success.

Effective Leaders are Eloquent

Eloquence, or the ability to write and speak in a persuasive manner, has become more important than ever in the digital age. Leaders should be able to communicate effectively and make the kinds of speeches that close deals.

Writing an eloquent memo can squash negative emotions, such as fear and dissent and inspire people to go above and beyond their limits. Take time to practice your writing and speaking to improve your eloquence and be the kind of effective leader you know you are.

Effective Leaders are Discerning

Being discerning means that you are able to better judge things; whether it be a person, a situation or a business decision. Discerning people take the time to understand problems and come up with various solutions, until they manage to put together one that works best for everyone.

Discerning leaders take time to think about their options and avoid rushing headfirst into everything that comes their way.

Effective Leaders are Modest

People get tired of hearing you talk about how great you are. Truly great people let their work do the talking for them. It’s fine to toot your own horn a little, but don’t be the person who does it the loudest. It’s great to be confident, but it’s better to be able to temper that confidence with modesty.

The above traits are important tools for entrepreneurs and leaders who have the dedication to learn and perfect them.

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