When most small businesses start out, the business owner wears all the hats, filling all of the management duties. As the business grows, however, managing all areas of that business eventually will become too much for one person. That’s when it’s time to expand your management team. For a new business owner who doesn’t have experience in team development, that can prove a challenge. In a few simple steps, you can create a successful management team for your small business.
Determine your management needs.
Developing a management team begins with determining your overall management needs. That means creating a list of all of the areas of your business that require executive oversite. For most businesses, that includes sales and marketing, production, finance, administration, and purchasing. Once you have established your list of management areas, you will need to determine which areas you are going to focus your business on and which areas you would like to assign managers to. You might choose to oversee some areas, based on your business strengths and time availability. You might also choose others to oversee one or multiple areas. Obviously, you will want to align your management team with your business goals and the direction in which you’re looking to grow and expand your business.
Create a flow structure.
When you bring in new team members, you’ll need to evaluate and determine your overall employee structure. You’ll need to know who is reporting to whom. Your current employees will need to know who they are reporting to directly, and you’ll need to know who your managers are reporting to. Will you oversee the entire executive structure yourself, or will you have a second-in-command that oversees the day-to-day operations and reports back to you? Having a finite flow structure will help avoid any confusion on management responsibilities and reporting.
Find the right people.
One of the greatest challenges in a management team is finding the right people. You might have internal candidates to consider, or you might turn to outside hires. Of course, you’ll look to the usual resume markers such as education and experience, but you also will want to consider how potential team members complement your management style and ability and how well their personality will mesh with your work environment. If your new manager will be overseeing a particular team of employees, you might want to include some of the employees in the hiring process to ensure that you’re hiring a manager who works well with those employees.
Help your management team grow.
Once your new management team is in place, your job is to push that team to help you achieve their goals, as well as their own.That means clearly communicating and involving your management team in your business goals and strategies, providing them with feedback and listening to their ideas and opinions. Another crucial component of a successful management team is growth. Provide your management team with opportunities to grow and develop their skills and opportunities. Not only will it equip your management team with the skills they need to help you reach their goals, it also will give them a reason to remain a valuable part of your management team.