EQ Vs IQ: What's More Important To Be Successful In Business?
Emotional quotient (EQ) is often forgotten when it comes to showering praises on a person. We only talk about the milestones achieved, the certifications completed, and the companies acquired. Descriptions of the personality never go beyond being a great family man and an excellent golfer.
The reason is our inability to accept EQ as an equivalent to intelligence quotient (IQ). In fact, EQ becomes more significant than IQ when you are leading a company. It is a given that entrepreneurs should be intelligent and knowledgeable. Still, if they lack empathy, self-awareness and understanding, they will not be able to build relationships and utilise the intelligence productively.
Thus if you are planning to purchase a profitable business for sale in South Africa, then you should be working on improving your EQ to succeed. Loyal consumers buy the same products because they are emotionally attached to the brand, employees stay in the company for years because they are emotionally invested in their projects, and entrepreneurs lead from the front because they are passionate about their work. All of these emotions are responsible for accomplishing company goals. Let us take a closer look at what matters more in making a business thrive.
The Advantages of High IQ
IQ is determined through a standardised test, and the result is calculated by dividing the mental age of the individual by his/her chronological age and multiplying it by 100. The test evaluates abilities, such as general knowledge, logical reasoning, memory, visual and spatial processing, and fluid reasoning. People with high IQ become members of Mensa South Africa. Here are the benefits of having a high IQ when you are running a business.
- Cognitive Skills - It is impossible to be able to manage an entity unless you have the cognitive ability, which makes you a knowledgeable resource in the economy. The human capital of an individual with high IQ is amplified through his capability to solve problems quickly and understand patterns. He is able to apply proven methods to these patterns and innovates consistently.
- Cognitive Performance - A highly intellectual brain is always on the lookout for the betterment of processes and keeps improvising. Their performance is also related to an enhanced attention span and lasting memory which equips them to handle challenges effectively.
- Analytical Ability - The analytical ability of highly intelligent people allows them to draw inferences and logical results from streams of data without getting confused. They have the talent to eliminate all the irrelevant ideas and opinions and determine conclusions.
- Decision Making Skills - A person with high intellect is able to identify rewarding opportunities and invest in the right equipment and people. It helps him to get the best people and machines onboard. They do not hire someone who is in desperate need of a job. Instead, they will be recruiting experienced and qualified candidates who can improve the organisation.
The Benefits of High EQ
EQ is emotional intelligence which refers to the capacity of acknowledging one’s own feelings and those of others. People with high EQ utilise their emotions as a guiding force which moulds their behaviour and the way they deal with their social environment and different situations.
- Empathy - It helps individuals to assimilate emotions and feelings and then use this information to manage their daily lives. It is the capability of an entrepreneur to understand how the other person is feeling. If you do not recognise the emotions of others, you end up becoming an insensitive, materialistic and ruthless dictator. You may build too much pressure and tension in the organisation to perform that it will transform into stress, anxiety and dissatisfaction among your workforce.
- Building Relationships - The success of an organisation is dependent on the relationships it builds with its people, including employees, customers, stakeholders, partners, suppliers, lenders, etc. The advanced interpersonal skills aid in developing lasting bonds and keeping the internal and external public engaged with the company. Networking and building a rapport will help you to achieve satisfied customers and happy staff, which will support your success. In fact, communicating with customers and understanding their needs has become all the more important for effective marketing during the COVID-19 pandemic.
- Self-Regulation - High EQ extends the skill of r gulating outbursts. It is leveraged by not allowing distressing thoughts to take over your mind and work. It gives you the capability to keep your emotions under control and do not make impulsive and rash decisions. It makes you think rationally about the repercussions and helps you to keep every perspective in mind while coming to a conclusion. Thus you do not badger an employee because you are facing losses or are feeling low.
- Enthusiasm - The inspiration that you get to achieve your business goals comes from the motivation evoked by your inner feelings. You feel passionate about achieving specific milestones and work towards them relentlessly until you get the desired outcome. It helps you to face challenges with a positive attitude and take risks without being scared of failure. Your motivation aids in becoming a mentor and an able leader who is revered by the employees.
Who Wins The Race Between EQ and IQ?
It is commonly accepted that both are equally vital for an entrepreneur. However, there are various instances where EQ shines brighter than IQ. For example, an empathetic business owner is better at understanding the pain points of the consumers and tries to give them a product which resolves this issue. Also, a person with high EQ is always down to earth and thus is respected and liked by one and all. The employees are eager to listen to a leader who doesn’t look down upon them or belittles them.
Arrogance, on the other hand, is often the pathway to failure in the commercial world as you become cut-off and aloof. Emotionally intelligent people are go-getters and strive to excel even in adversity. They do not hesitate to move forward even when they have failed in the past as they have self-belief and confidence.
Similarly, following an ideal philosophy also doesn’t take you far if you do not have business acumen and knowledge of the market. An entrepreneur must have awareness and understanding to outshine competitors and take advantage of viable opportunities. Thus every business owner should have a balance of both these qualities to operate a well-recognised entity.
As stated above, both EQ and IQ are influential in determining the success of a business. Thus if you have purchased a business for sale in South Africa, then you should have a mix of both in your organisation to flourish.