What Makes a Great Manager? A Guide for Small Business Owners
Being a small business owner is no walk in the park. You juggle budgets, wear multiple hats, and often double as the HR department and chief coffee officer. But as your business grows, one of the most impactful decisions you can make is hiring (or becoming) a great manager. Why? Because a great manager doesn’t just keep the wheels turning—they energize the entire engine.
So, what exactly makes a manager not just good, but great? Let’s break it down.
They lead with empathy, no ego
Empathy isn’t just a warm and fuzzy buzzword. It’s the ability to understand, care about, and respond to your team’s needs, perspectives, and experiences. Great managers lead with empathy because they understand that people aren’t cogs in a machine—they’re the engine.
Example: Imagine two bakery managers. One barks orders during the morning rush, dismisses employee concerns, and rarely checks in. The other listens when a team member shares they’re overwhelmed, adjusts the schedule, and provides backup. Guess whose team stays longer and delivers better service? Yep—Empathy wins every time.
Pro Tip: Use regular 1-on-1s to check in on team members, not just about tasks, but how they’re feeling.
They communicate clearly and often
You know what employees dislike even more than low pay? Unclear expectations. A great manager sets the tone with open, transparent communication.
Specifics That Work:
Weekly team meetings with agenda and follow-up
Clear KPIs (Key Performance Indicators) for each role
Regular updates on business goals, wins, and areas for improvement
Example: At a small marketing firm, the manager starts every Monday with a short stand-up meeting: what’s happening this week, any changes in client needs, and goals for the week. It takes 15 minutes and prevents hours of confusion.
Pro Tip: Be consistent in your communication and choose the right format—some things belong in email, others are better face-to-face.
They cultivate a culture of accountability
Great managers hold people (including themselves) accountable without blame or shame. It’s about making sure everyone owns their results and learns from missteps.
How to Build Accountability:
Set clear goals and deadlines
Address missed targets promptly and constructively
Celebrate wins, both big and small
Example: A salon manager noticed that appointment bookings were being missed. Instead of pointing fingers, she introduced a simple double-check system and retrained the front desk team. Result: no more missed bookings and a team that felt supported, not attacked.
Pro Tip: Use mistakes as learning moments. Ask, “What happened? What can we do better next time?”
They develop their people
Training isn’t a cost—it’s an investment. Great managers know that when their team grows, the business grows.
Ways to Develop Your Team:
Offer cross-training opportunities
Send employees to workshops or online courses
Encourage team members to set personal and professional growth goals
Example: In a small auto repair shop, the manager noticed one of the techs had a knack for customer service. Instead of keeping him in the garage full-time, she trained him for a hybrid role, eventually promoting him to a service manager position.
Pro Tip: Ask your team, “Where do you want to grow this year?” Then help them get there.
They set the example
You can’t expect punctuality, professionalism, or positivity if you don’t model it. Great managers walk the walk.
What It Looks Like:
Arriving on time and prepared
Admitting when they make a mistake
Treating everyone with respect, from interns to vendors
Example: In a local boutique, the owner-turned-manager always greets every employee by name, pitches in during inventory days, and thanks the team after busy weekends. That tone of mutual respect trickles down into customer service, too.
Pro Tip: What you model, you multiply. Make sure your actions reflect your expectations.
They recognize and reward
It doesn’t take a six-figure bonus to make someone feel valued. A handwritten note, a surprise coffee, or a shoutout in a team meeting can go a long way.
Recognition Ideas:
Weekly MVP shoutouts
Peer-to-peer recognition programs
Celebrating work anniversaries and birthdays
Example: At a dog grooming business, the manager keeps a whiteboard of weekly wins. Every Friday, the team gathers to celebrate moments like happy customer reviews or mastering a new grooming skill.
Pro Tip: Make recognition timely and specific. “Great job on that client presentation yesterday” hits harder than “You’re doing great.”
They manage conflict with confidence
No team is free from tension. But great managers don’t sweep it under the rug. They address issues head-on, with fairness and clarity.
Conflict-Resolution Formula:
Don’t delay: address issues quickly
Stay objective: focus on behavior, not personality
Facilitate resolution: allow both sides to share their perspective
Example: When two baristas at a coffee shop clashed over shift responsibilities, the manager brought them together, clarified expectations, and created a shared task list to avoid confusion. Peace restored, espresso shots flowing.
Pro Tip: Your job isn’t to be everyone’s best friend, but to ensure a healthy and productive team environment.
They understand the business
You don’t need an MBA to be a great manager, but you do need to understand the nuts and bolts of how your business runs.
Business-Savvy Skills:
Reading basic financials
Understanding customer needs
Aligning team efforts with business goals
Example: A restaurant manager who notices ingredient costs rising adjusts the menu, trains staff to reduce waste, and communicates changes clearly. The result? Higher margins and a stronger bottom line.
Pro Tip: Give your managers visibility into key metrics. It helps them make smarter decisions and align their team’s efforts with business success.
Final Thoughts: Your Role as Owner
Whether you’re managing people directly or hiring someone to do it for you, remember: Great management isn’t about barking orders. It’s about building relationships, solving problems, and lifting others up so your business can thrive.
You don’t need a corporate playbook. You just need heart, hustle, and a commitment to helping your team shine.
Because at the end of the day, a great manager doesn’t just make work better—they make businesses stronger.
Ready to level up your leadership game? Start small. Pick one trait to focus on this week. Whether it’s giving more feedback, improving your communication, or just listening more—those little changes make big waves.
Because when your team thrives, your business thrives.
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