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 There are many different leadership styles, but all great leaders have similar traits, according to serial entrepreneur James Caan's post on LinkedIn. Caan says that leadership is a hard concept to define and only through hard work and experience can you acquire the necessary skills you need to effectively lead others. Below, he describes four traits ever great leader has: 1. You must have confidence. Caan says: "As a decision maker or chief executive you should never forget that all the people you manage are constantly looking to you for inspiration and guidance and setting an example is a major part of the job description. There is of course a very big difference between confidence and arrogance, and it is important not to cross that line." 2. You must be business-saavy. "Knowing what course of action to take in any given situation is a great skill to be able to draw on," he says. "The ability to react in the right way to changing circumstances is something that usually comes with many years of experience." 3. You must be able to make decisions. "It is easy to lead when things are going well and a business is running smoothly. However, the true test of leadership is when an unexpected crisis rears its head," says Caan. 4. You must know your employees. "Any good manager needs to be able to understand what makes their people tick and what motivates them," he writes. "This also helps to build staff loyalty which is a crucial element of running a business." "Not all of us can be leaders, and there are plenty of people who are happy not to be, but it would be foolish to think that leadership is an easy skill to master," says Caan. Want your business advice featured in Instant MBA? Submit your tips to tipoftheday@businessinsider.com. Be sure to include your name, your job title, and a photo of yourself in your email. | 
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