Good management skills are crucial for small businesses to thrive and succeed. As the owner or manager of a small business, you are responsible for overseeing and directing all aspects of your business, from operations and finance to marketing and sales. You must have a wide range of skills, including leadership, communication, organisation, and problem-solving, to be able to effectively manage your business and lead your team to success.

In this guide, we will discuss some essential management skills for small business owners and managers, and provide some tips and strategies for developing and improving these skills, covering:

  • Key management skills
  • Leadership skills for managers

Key management skills

So what are good management skills? What do you need in terms of skills to be a good manager? Here are just some of the key managerial skills that will make you an effective manager:

Encouraging and appreciating teamwork in small businesses

Collaboration and teamwork are critical aspects of business success, especially for small businesses that depend on the productivity and efficiency of their teams. When employees work together, they can achieve more than what they could individually.

In contrast, toxic behaviour and unhealthy competition can quickly diminish the productivity and performance of a team. Therefore, it is crucial for small business managers to appreciate and encourage teamwork to enhance outcomes, promote individual development, and achieve long-term business success.

Supporting collaboration and mitigating toxicity

Encouraging teamwork and collaboration involves more than just asking employees to work together. Small business managers should create an environment that supports and nurtures collaboration while mitigating toxic behaviour.

To achieve this, managers can employ various strategies, including creating an open and inclusive culture, promoting trust and respect among team members, and fostering healthy communication channels.

For instance, managers can create opportunities for team members to collaborate on projects and tasks. They can also establish regular team meetings and feedback sessions to enable employees to share ideas, discuss challenges, and celebrate successes.

This approach helps to build trust and respect among team members, fosters a sense of belonging and purpose, and promotes open communication channels that reduce conflicts and misunderstandings.

Reliability and consistency

Reliability is another of the most effective managerial skills. It is important for employees to perceive their leader as a stable, reliable, and secure individual. Employees will look to their manager for guidance on organisational objectives, opinions on their work, and counsel.

Additionally, employees must feel comfortable seeking assistance from their manager when facing challenges. It is crucial that employees view their manager as a composed individual who can handle difficult situations calmly. Failure to do so could result in employees feeling uncomfortable approaching their manager, ultimately eroding their trust in management.


Good managers are trustworthy, and they respect confidentiality. Employees need to have faith in their leaders and know that their managers have their employees’ best interests at heart. If your employees feel like you don’t support them, it’ll lead to a toxic work environment, reduced collaboration, and unhealthy competition in your workplace.

Employees also need to be assured that management is telling them the truth. Your trustworthiness is built on respecting the privacy of your employees and offering honest advice based on what aligns best with your company’s goals.


Having emotional intelligence, which encompasses sensitivity and empathy, is a crucial soft skill that all modern managers should possess. This skill can make all the difference between an engaged employee and one who is burned out, frustrated, and unmotivated. As such, it's essential for managers to be aware of the signs that indicate that an employee is pushing themselves too far, which can cause burnout, anxiety, depression, and disengagement.

In many cases, good managers will pick up on the early signs of these conditions before an employee approaches them to discuss the situation. Sensitivity is especially needed when it comes to issues such as anxiety, which can be debilitating for employees. Managers must be able to put the right provisions in place, including providing flexible working measures, being understanding about mental health breaks, and being mindful of anxiety during the goal-setting process.

By taking proactive measures like these, managers can demonstrate to their employees that they are not alone and that the company is willing and able to support them. This can have a significant impact on employee well-being, job satisfaction, and overall productivity. In short, emotional intelligence is a vital trait for any manager looking to foster a positive, productive work environment.

Willingness to adapt

Another of the skills of a good manager is being ready to change when needed. The business landscape is in a constant state of flux, with new technologies, employee motivation strategies, and performance evaluation methods being introduced regularly.
As a result, businesses must continuously evolve to stay current and competitive. This ongoing change is a positive sign as it indicates that a company is adapting and remaining viable over time.

Managers who remain rigid and resistant to change may struggle to keep up with the pace of change and may become stagnant. In contrast, effective managers are adaptable and flexible. They anticipate change and prepare for it, recognizing it as an exciting opportunity rather than a burden. By embracing change, they can lead their teams through periods of transition and guide them toward success.

Leadership skills for managers

Good management skills require excellent leadership abilities. As a small business owner, you need to inspire and motivate your team to achieve the business objectives. Develop a leadership style that aligns with your business values and culture.

Lead by example, be open to feedback, and recognize the contributions of your team members. Also, be willing to make tough decisions and take responsibility for the outcomes of those decisions.


Having excellent communication skills is vital for managers as it influences the sharing of information within a team, resulting in a unified workforce. Efficient communication facilitates the adherence to established procedures, the successful completion of tasks and activities, and, consequently, the organisation's success.

Effective communication within an organisation includes the flow of formal or informal, verbal or written, and vertical or horizontal information. It contributes to the smooth functioning of the organisation by establishing clear communication channels, allowing the manager to collaborate with the team, prevent conflicts, and resolve issues. A manager with exceptional communication skills can connect with the employees and, therefore, achieve the company's goals and objectives with ease.


Making sound decisions is a crucial management skill that can greatly impact the success of an organisation. Managers are responsible for making numerous decisions, both big and small, and it is their ability to make effective decisions that can set them apart from others. Poor decision-making can lead to failure or poor performance, while making the right decisions can drive the success of the organisation.

To ensure the smooth running of an organisation, managers must be able to make clear and well-informed decisions. They must be accountable for every decision they make and be willing to take responsibility for the results of those decisions. A good manager must possess strong decision-making skills, as it is often a critical factor in achieving the organisation's objectives.


Effective delegation is an essential management skill. Delegation involves assigning tasks and responsibilities to other employees or subordinates. It requires the manager to allow tasks to be reassigned or reallocated based on current workloads.

A leader who possesses good delegation skills is able to effectively and efficiently assign tasks and delegate authority to the right employees. Proper delegation helps facilitate efficient task completion and ensures that employees are held accountable for their responsibilities.

The benefits of delegation are numerous. It helps managers avoid wasting time and optimises productivity. When leaders delegate tasks, they can focus on higher-level tasks and strategic planning, which ultimately benefits the organisation as a whole. Delegation also helps employees develop new skills and gain experience in new areas, which enhances their job satisfaction and career development.

To delegate effectively, managers must first identify the tasks and responsibilities that can be delegated. They must then choose the right employees for the job, taking into consideration their skills, knowledge, and workload.

Leaders must also ensure that employees have the necessary resources and support to complete the task. Proper training and communication are essential to ensure that employees understand their responsibilities and are equipped to complete the task successfully.

Effective delegation also requires managers to provide feedback and support throughout the process. This ensures that employees understand their progress and receive guidance on how to improve their performance. Managers must also be willing to trust their employees and allow them to make decisions within their delegated authority.

Tips for Developing Leadership Skills

To develop your leadership skills for managers, consider the following tips:

  • Seek feedback from your team and other stakeholders to gain a better understanding of your strengths and weaknesses as a leader.
  • Attend leadership training courses or workshops to learn new skills and techniques for effective leadership.
  • Read books or articles about leadership to gain insights and inspiration from successful leaders in your industry.
  • Find a mentor or coach who can provide guidance and support as you develop your leadership skills.

So, there you have it, a comprehensive guide to developing good management skills.