Managing a small business is a juggling act. Between keeping customers happy, balancing the books, and planning for growth, it’s easy to miss the powerful levers that can transform team performance—including your own leadership style. Small business teams rely on their leaders for motivation, guidance, and direction. If you want your people to deliver their best work, honing your leadership approach is key. Here are five proven tips to get the best from your team.
1. Lead by Example
Your team is watching you—even when you think they’re not. The values, attitudes, and work standards you exhibit set the tone for the whole organisation. Whether you’re first in and last out, maintaining a professional attitude with clients, or handling mistakes discreetly, your actions ripple through your team.
- Show respect in all interactions—especially under pressure.
- Demonstrate a strong work ethic without glorifying overwork. Modelling a balanced approach encourages employees to do their best without risking burnout.
- Be transparent about successes and setbacks; acknowledging both helps normalise learning from mistakes.
For inspiration, check out this short YouTube video on leading by example in business: Lead By Example | Leadership Development | Growth Mindset
2. Empower Through Effective Delegation
A common sticking point for small business owners is the urge to do everything themselves. While hands-on involvement is sometimes necessary, the best leaders empower their team by delegating responsibility—not just tasks.
- Identify your team’s strengths and align them with business goals.
- Delegate authority, not just actions. Trust team members to make decisions within their area.
- Make room for learning. Assign projects that stretch abilities and offer guidance instead of micromanaging every step.
- Recognise and reward initiative—publicly when possible.
Part-time leadership can support delegation within SMEs without losing control over outcomes. Discover more on the value of interim and fractional directors here: Transformative Leadership on Tap – The Real-World Impact of Part-Time Directors
3. Foster Open Communication and Active Listening
Effective communication is the backbone of high-performing teams. That’s not about talking more—it’s about making it easier for people to speak their minds and for leaders to truly hear what’s being said.
- Encourage feedback and suggestions in meetings or through anonymous channels if necessary.
- Hold regular 1-to-1 catch-ups. Use these sessions to check for roadblocks and listen to concerns before they escalate.
- Practice active listening—maintain eye contact, repeat back what you’ve heard, and clarify any misunderstandings.
- Be honest when you don’t know something. It builds trust and invites collaboration.
If your team struggles with remote collaboration, this video offers practical advice: How to Communicate as a Leader – 5 Communication Strategies
4. Build a Culture of Honesty and Trust
Trust is the foundation upon which sustained team performance rests. Without it, creativity, accountability, and commitment dry up. Building trust requires effort and consistency, but the rewards are huge.
- Keep your promises—big and small. If you say you’ll do something, follow through.
- Admit mistakes promptly and openly. This sets a tone where it’s safe to own up and focus on solutions, not blame.
- Encourage information-sharing. A culture that doesn’t punish honest mistakes or bad news is far better prepared to handle challenges.
- Foster inclusivity and fairness. Make sure team members feel their contributions are valued regardless of their role.
Looking for more detailed case studies and insights? See our leadership blog for real-world stories from SME leaders: Leadership Insights
5. Develop Strategic Vision and Direction
Teams thrive when they understand where their business is heading—and how their efforts contribute to the bigger picture. As the leader, your role is to provide clear direction and continually communicate it.
- Set and share ambitious but achievable goals. Link immediate tasks to longer-term plans so everyone feels invested.
- Break down strategy into practical next steps. Short, regular updates help maintain momentum and adapt to changing conditions.
- Celebrate progress toward milestones. Small wins breed morale and reinforce the value of the journey, not just the destination.
- Regularly review and adjust your vision. Economic, technological, and industry shifts happen quickly—flexibility helps you stay ahead.
For more on how strategic interim leadership can catalyse growth, read: Future-Proof Your Company – The Rise of Innovative, Value Driven Interim Leadership
Frequently Asked Questions
How do I know if my leadership style is working?
Consider metrics like employee turnover, team engagement, and project completion rates. Regular, anonymous feedback is also valuable—sometimes what you don’t hear says as much as what you do.
What’s the biggest mistake small business leaders make?
Trying to control everything. It stifles initiative and limits growth.
How do I build trust quickly if my team is new?
Be openly communicative from day one; admit what you don’t know, respect confidentiality, and celebrate early small wins together.
Is it worth hiring outside leadership help for an SME?
Yes. Fractional or part-time directors can provide strategic expertise without the cost of a full-time executive, guiding cultural change and scaling processes as you grow. This can be particularly valuable if you’re moving from “startup” chaos to established business practice.
Useful Resources & Further Reading
- Chartered Management Institute – Leadership and Management Guides
- MindTools – Delegation Skills
- Harvard Business Review – How Managers Become Leaders
- Entrepreneur Handbook – SME Leadership
Explore more leadership tips, practical tools, and real-world stories at the Leadership Services Blog.
