5 Key Management Skills Every Small Business Owner Should Have
Management skills are central to the success of any small business. They help business owners and managers effectively guide their teams, make smart decisions, and handle challenges efficiently. But good management involves more than just overseeing tasks; it includes planning ahead, leading teams effectively, understanding finances, and making tough decisions when needed.
These skills are especially important in small businesses, where every decision can have a big impact and resources are often limited. The better a manager is at leading and making informed choices, the more the business is likely to grow and succeed over time.
Master these 5 skills to become a better manager
- Effective Communication
Why It Matters: For a manager, mastering communication is vital. It sets the tone for your business’s culture, impacts your ability to negotiate and sell, and is crucial in building strong relationships with employees, customers, and partners. Whether it’s giving feedback, pitching to investors, or handling customer service, the way you communicate can significantly influence your business’s success.
Effective communication in the context of management means sharing information in a way that is clear, concise, and understandable for everyone involved. It’s about ensuring that messages are delivered and received as intended, whether it’s giving instructions to a team, discussing plans with partners, or resolving customer issues.
In small businesses, where teams often work closely together and resources are limited, the ability to communicate effectively is even more critical. It avoids misunderstandings and mistakes, ensures that everyone is on the same page, and helps resolve conflicts more efficiently.
- Delegation
Why it matters: Many managers struggle with delegation, often feeling the need to oversee every detail personally. This approach can lead to burnout and bottlenecks, hindering growth and innovation. Learning to delegate effectively allows you to focus on strategic planning and business development, while your team members grow through new challenges and responsibilities.
Delegation is a fundamental management skill that involves assigning responsibility for specific tasks or functions to others. It’s not just about lightening your workload but empowering your team and leveraging their strengths for the overall success of the business. Effective delegation can lead to improved efficiency, creativity, and team development.
However, many small business owners find delegation challenging. Common barriers include a lack of trust in employees’ abilities to handle tasks effectively, fear of losing control over the business, and the belief that it might be quicker to do the task themselves rather than explaining it to someone else. There’s also the challenge of not having clear processes or training in place, which can make delegation seem more like a risk than an opportunity. Overcoming these barriers requires building a competent team, investing in training, setting clear expectations, and gradually increasing the level of responsibility and autonomy given to employees.
- Problem-Solving
Why it matters: In the dynamic landscape of small business, challenges can emerge from anywhere—financial difficulties, supplier issues, customer complaints, or internal conflicts. Your response to these challenges can define the future of your business. Effective problem-solving not only addresses the immediate issue but also strengthens your business against future challenges, enhancing resilience and adaptability.
Being able to problem solve, think on your feet and make informed decisions is an indispensable skill for any manager.
As a manager, you are likely to face a variety of challenges, such as cash flow issues, supply chain disruptions, staffing problems, and changing market demands. For example, cash flow issues might require negotiating better payment terms with suppliers or finding innovative ways to increase sales. Supply chain disruptions could necessitate finding alternative suppliers or adjusting product offerings to match available resources. Staffing problems might involve strategies for retaining and motivating employees or efficiently managing workloads.
- Time Management
Why it matters: Where every day, as a manager, brings new challenges and opportunities, how you spend your time is critical. It’s easy to become overwhelmed by the multitude of tasks demanding your attention, but with strong time management skills, you can prioritise these tasks, set realistic deadlines, and maintain focus on your long-term goals.
To improve time management, several techniques can be employed. Prioritising tasks is a fundamental strategy, requiring managers to distinguish between what is urgent and what is important, focusing on activities that align with their business goals and personal values. Techniques such as the Eisenhower Box can help in this process, categorising tasks by their urgency and importance.
Managing distractions is another critical aspect; this includes setting boundaries, such as designated work hours, and minimising interruptions from emails, phone calls, and social media. Tools like time-blocking can also be effective, where specific blocks of time are allocated to different tasks or activities, helping to maintain focus and discipline.
- Team Motivation
Why it matters: Motivation influences not only how hard team members work but also their willingness to take on new challenges and persist in the face of setbacks. As a manager, a motivated team can be your greatest asset, differentiating your business through exceptional service, innovation, and resilience.
Various motivational strategies can be employed to inspire and encourage team members. Incentives, such as bonuses, raises, or other rewards, can be powerful motivators by offering tangible recognition for hard work and achievements.
Recognition itself, even without physical rewards, is also highly effective. This can take the form of public acknowledgement in meetings, personalised thank-you notes, or employee-of-the-month programmes. Such gestures show appreciation for individuals’ contributions and reinforce their value to the team and company.
Additionally, providing opportunities for personal and professional development is crucial. This might include offering training sessions, workshops, or courses that help employees gain new skills, advance their careers, and feel more fulfilled in their work.
In wrapping up, mastering these five key management skills—effective communication, delegation, problem-solving, time management, and team motivation will reshape how you lead, how your team performs, and how your business is perceived in the marketplace.
If you are interested in strengthening your skills as a manager, or those of your team, secure your seat at our next our 12 Week Management Training course today.
Martin Baillie is a Business Coach and Growth Specialist at ActionCOACH Bury St Edmunds, committed to working with business owners to create sustainable, viable, profitable entities within the local community, and creating 1000 new jobs in the East Anglian region through that growth.
If you are looking to increase the profit in your business while freeing up time, and having a better work / life balance, there is no better time to start than now. Our business growth methodology is tried and tested, and we guarantee your results.
Contact Martin Baillie, ActionCOACH Bury St Edmunds now on Tel: 01284 334098. You can also follow him on LinkedIn , Instagram and Facebook
