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Qualities of a Good Manager and Leader that Every Small Business Needs


For most businesses, managers are the ones holding down the fort. They are the ones who know the ins and outs of the entire operation and can be the reason why employees choose to stay and leave.

For small businesses, a good manager is essential to driving the company's growth. A “good manager” is defined by the qualities one possesses and their ability to lead and take charge.

Today I'm going to share a few qualities to look for when selecting the next manager for your small business, or areas where you may want to grow and improve if you're managing a small business.



First and foremost, it is important to select a manager who knows the difference between managing and leading. In a small business, managers must perform both jobs.

Managing refers to the job at hand with all its technicalities.

Leadership refers to the way in which a manager or team member is able to inspire and empower other members to reach organizational goals. 

A good manager is a good leader. These are people who do the job of setting and enforcing organizational goals, and beyond this, they take it upon themselves to motivate and lead their team toward reaching these goals.

Leadership requires emotional resilience and the ability to connect with team members and subordinates on a personal level while maintaining a level of professionalism.

Related: 11 Small Business Charity Ideas Your Team Will Love

Decision Making Skills

decision-makingManagers, regardless of what level management, are constantly tasked with making decisions. No matter how big or small, a good manager should be able to make a decision quickly and carefully.

Just because a manager makes a decision, does not always mean that it’s the right one. It is important to remember that making decisions that do not follow through or go as planned does not make a person a bad manager, everyone makes mistakes. 

The quality of a good manager comes with the way in which they own up to their decisions and how well they follow up with afterwards.

Good managers are confident enough to admit that maybe they made a bad call- but then are able to offer a solution. 


Communication and Transparency


Similarly to good managers being able to own up to their mistakes, one of the important qualities of a good manager is they possess the skills to communicate with their team members and offer a level of transparency that builds trust.

Communication is always key, and a company cannot make their employees happy and encourage them to stay without trust. 

A good manager is able to communicate clearly and easily with their team members and superiors.

Effective communication requires the ability to express disputes in a transparent manner. This means no sugar coating, but also the ability to communicate without being rude or offensive.

Proper communication cannot take place without correct information. Good managers must be honest in what they communicate in order for team members to both understand and trust what they say. 

Recommended: 59 Small Business Owner Quotes to Motivate & Inspire You


empowering-your-teamGood managers should be able to find ways to empower their team members through means of praise.

It is important for managers to be able to recognize the accomplishments of their team members and it is important for employees to feel valued within the organization.

Means of empowerment and praise can be as simple as recognizing employees for their work and improvement, a simple “good job” or personal shout out is a simple way to do so. Other methods also include creating initiative by offering special bonuses. 

Whatever the method is, a good manager knows the importance of showing their employees that their efforts are not going unnoticed.

Employees stay for longer and perform better when they feel valued in the organization, and a good manager should know how to make them feel that level of value and security. 

Proper Coaching

coachingA good manager should also know how to coach.

This means that they continue to teach their employees and provide them with knowledge and skills for professional growth.

The value of investing in professional growth for your team is something many companies underestimate.

Even if an employee leaves your company, they will be able to spread the word that your company is a great environment for learning and growth. 

Coaching can be done through job training, wherein managers can offer advice directly to trainees in order to boost performance. Alternately, managers can invest in training programs and/or sending their team to relevant conferences.

When people apply advice and see it is working, not only will they continue to apply those new skills and do their job better, they will remember the person who helped them gain those skills.

Related: 2020 Small Business Statistics You  May Find Interesting

The Power of a Good Manager


A good manager is a manager, leader, and coach all in one. They are the ones pushing team members towards reaching or exceeding organizational goals, and are one of the main reasons why employees choose to stay with a company, or leave for greener pastures.

Being able to pinpoint the qualities of a good manager is essential to company growth, which small businesses need.

Without a good manager, companies will find it difficult to retain their best employees.

Remember, at the end of the day, most people leave companies because of bad management or the “dead end” mentality. Selecting a good manager is vital to company growth, and the qualities of a good manager are easy to spot.