A major difference between being a manager and an entrepreneur lies in the moment when each becomes a leader. The manager is a leader in charge of a company from the moment they take command, whereas an entrepreneur is already a leader from the start of their business adventure, even if it is not yet operational.

Leading an SME involves making constant decisions. Some are operational and quick, while others may define the company’s future. But they all have one thing in common: they directly affect money. That is why a leader’s training is not a luxury or an add-on, but a strategic tool.

Many entrepreneurs start out of necessity or passion. They learn along the way through trial and error, with the falls, knocks and effort that give them the experience needed for decision-making. And although such experience is invaluable, there comes a point when intuition alone is not enough to make sound economic decisions – technical judgement is needed. And that judgement is built through training.

Training as a leader does not mean doing a master’s degree or spending hours in theoretical classes. It means dedicating time and attention to understanding the key areas of the business better: from financial management to strategic planning, from negotiating with suppliers to assessing risks.

Why is it so important?

Training as a leader can help avoid costly decisions; a bad decision made out of ignorance can turn out to be far more expensive than an investment in training. Understanding concepts such as cash flow, opportunity cost or break-even point can prevent serious mistakes.

In addition, with proper training, access to finance can be made easier. Knowing how to present your business with clear figures, explain your profitability and defend your strategy before a bank or investor makes a huge difference.

Training not only provides answers, it also helps you ask the right questions. Is this the right time to grow? Can I take on this investment?

And of course, training as a business leader will help you improve your team management. A leader who understands the numbers can better align the team with financial objectives. They can explain goals, allocate responsibilities and assess results more clearly.

Nowadays, there are many accessible options: short online courses, webinars, practical workshops and mentoring programmes designed specifically for entrepreneurs. Even a coffee with a good adviser can make a difference.

Don’t hesitate to request the free advisory services of the Economic Office of Galicia, and an expert will get in touch with you to help.