Leadership Tips for Small Business Owners

Since small business owners operate small companies, their employees are a key asset that plays an important role in the success of the business. Unlike larger companies, most small business owners don’t have employee depth. In some cases, the loss of one employee can place a business operation at risk. Managing and motivating people, in a small business environment requires a combination of common sense, people skills and sound management practices.

 The following tips can help small business owners to better manage and motivate their employees:

·         Act Like a Large Company

In medium and large companies, there are policies for employee time off, performance evaluations and salary reviews. It’s important that small business owners have similar policies for their business so that the employees feel that everyone is treated fairly. These include employee recruitment techniques, proposed wages, vacation and other benefits.

·         Transfer the Knowledge to Employees

Don’t rely upon employees to learn certain aspects of their job on their own. Typically, an owner will train one or two other people. Since the owner understands what is required to successfully operate the business this knowledge needs to be transferred to the employees.

·         Establish Accountability for Each Employee 

Employees must be responsible and accountable for the job that they are charged to   perform and they need to receive feedback regarding their performance. An owner can get so caught up in the business operation that they fail to hold those responsible accountable. Leadership includes goal setting, coaching and evaluating each employee’s performance.

·         Be Willing to Accept Feedback from your Employees

Take the position that each employee has something to contribute. Encourage employees to make a contribution and provide a forum for employee feedback at meetings or other venues.

·         Have a Recognition Program for your Employees.

Whether it’s an award or financial incentive, provide your employees an opportunity to be recognized. People want to be recognized for a job well and for doing what they are being paid to do.

·         Treat Each Employees with Respect

Whether you manage three people or thirty-three people, treat everyone with   respect. Not just as subordinates or employees, but also as individuals. Be sure to provide employees feedback for both positive and negative performance.

Employees look to their business owner for leadership and motivation.  If a small business owner provides proper employee training, instills confidence and solicits feedback the opportunity for a successful business will improve.  

Ed Teixeira is the author of Franchising From The Inside Out and the Franchise Buyers Manual. He currently publishes a weekly newsletter and consults on domestic and international franchising. He can be contacted at franchiseknowhow@gmail.com or 631-246-5782. Click here to reach the FKH website.