Common Leadership Mistakes to Avoid as a Small Business Owner

While there are fewer small business owners to run within a small business, managing staff is just as important as in larger businesses. Small businesses typically do not have Human Resources (HR) departments, therefore the responsibility of managing a team often falls on a manager or the entrepreneur whose expertise is in a different area. As a result, a few common management mistakes commonly occur.

  1. Hiring the Wrong People in Desperate Times
    • When a position opens up in a small business, it may leave a large void and is usually necessary to fill the position quickly in order to keep the business running smoothly. Unfortunately, many entrepreneurs in small companies can be under pressure and hire someone that may be less qualified just to fill the position. It is worth sacrificing more time to interview several potential employees and/or call on referral sources to find the right employee long-term.
  2. Waiting to Lay-off Problem Employees
    • Discharging employees is always challenging and difficult for everyone involved. If you have an issue with an employee, implement a “write up” policy – document issues as they arise, warn with a write up, then discharge after a number of write ups. If you have any concerns, check with your lawyer (yes, you need one), but don’t hang onto a bad employee forever, hoping he or she will get fed up and quit.
  3. Neglecting Small Business Employment Laws
    • Be aware and knowledgeable of employment laws. Some laws apply to businesses with just one employee, while other laws apply to businesses with 12 or more. It is critical for employers to study these requirements and take the necessary steps to comply with all applicable laws. And, always consult your lawyer with questions or concerns.

Building and running a successful business is enough work without giving yourself an endless supply of HR nightmares. Follow TBG’s Superhero Small Business Tips, and you’ll tackle these issues before they tackle you!

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