Some Common Leadership Mistakes in Small Business

Let’s be honest with ourselves, we all make mistakes and if we weren’t then we clearly aren’t trying hard enough to improve and reach our full potential. What is important about making mistakes is that we learn from them and ensure we don’t make the same mistake again. Let me share but a few general mistakes I have made or experienced over the years in the hope that someone will avoid making these same mistakes.

  1. An organisation needs a clear vision and objectives. Business leaders need to have a clear vision for the business and all staff need to know and work towards achieving the organisational goals.
  2. The business leader needs to set an example for which the team can follow. If you are not inspired by the thought of coming to work how motivated will your team be?
  3. Staff are not a necessary evil to be taken for granted. Not listening to your staff, caring about their concerns, supporting them through training and mentoring lead to high staff turnover and extra expense through hiring costs, loss of productivity and affects staff morale.
  4. Not taking enough care during the hiring process. Interview each candidate equally so that they can be evaluated on the same criteria. Always check references and seriously consider some form of physiological testing to ensure they will fit your culture.
  5. Providing inadequate feedback. Communication needs to be regular, clear and open. Your staff know more about your business than you think and when invited to contribute will have some great ideas. Also provide timely feedback both good and bad in the appropriate environment.
  6. Not addressing the non-urgent but important issues before they become urgent. Avoid jumping from one ‘fire’ to the next by getting on top of issues early. A bit of preventative maintenance goes a long way.
  7. Far too often leaders and key staff fail to share vital information about critical processes within the business. Delegate where possible and motivate your team by sharing how critical processes are handled!
  8. No monitoring or evaluation system. Too many leaders fail to effectively monitor the business performance and the team’s performance to their detriment. Know your businesses key numbers and act quickly to rectify identified issues.
  1. Trying to do it all themselves. Leverage your staff to get more from your business.
  2. Not marketing. There is a crucial relationship between sales and marketing, the failure to market will severely affect your ability to compete. Not all marketing needs to be expensive so find a solution that works within your budget.

Richard Kemp – Watts Price Accountants
E: richardk@wattsprice.com.au

The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.