Small Business Management: 20 Foundations Every Manager Should Know

What Is Small Business Management?

Small business management is running the business, not just doing its work. It comes down to four jobs: plan the work, organize it, lead the people doing it, and control the results. In a small business, the owner usually does all four, on top of the daily work. That is exactly why things break.

1

Plan

Decide what you want to achieve and how. The steps, who does each one, what it costs, and in what order.

  • Priorities
  • SMART goals
  • Operating plan
2

Organize

Set up the people, roles, and processes so the work gets done the right way, even when you are not there.

  • SOPs
  • Delegation
  • Org structure
3

Lead

Direct and support the team. Hire well, train well, communicate clearly, and keep good people.

  • Hiring and onboarding
  • Motivation
  • Feedback
4

Control

Check the results against the plan. When something goes wrong twice, fix the cause, not just the problem.

  • Root cause analysis
  • Continuous improvement
  • Decision reviews

Most owners are great at the work and nobody ever showed them the four jobs. The fix is not working harder. The fix is building the foundations, one at a time. Dr. Paul uses the same approach with clients through his Organize-Plan-Grow™ Strategy: build a business that runs on systems instead of on its owner.

Doing the work and running the work are two completely different jobs. Most of us learn the second one the hard way, one expensive mistake at a time.

Dr. Paul Borosky, DBA, MBA, Management and Leadership for Small Businesses

Find the Problem You Have Right Now

Each foundation starts with a question a real owner asks. Find yours. The first ten are about the work: how it gets planned, organized, done, and checked. The second ten are about the people: how they are hired, trained, led, heard, and kept. New to a term? The small business management glossary defines 51 of them in plain English.

Part One: Managing the Work

Foundations 1 to 10
02Organize

How to Delegate Work as a Small Business Owner

"How do you hand off work when nobody does it right?"Chapter 2 · Six Legs Are Not Enough: An Ant's Backlog

Delegation is handing a task to someone else and giving them what they need to finish it, while you stay accountable for the result. The responsibility goes with the task. The accountability stays with you.

Read the full guide →
04Plan

How to Prioritize Work: Urgent vs. Important

"How do I get through everything when everything is urgent?"Chapter 4 · Eight Half-Finished Jobs: An Octopus's Pile

Prioritization is deciding which tasks matter most and doing those first. Urgent tasks cost you if they wait. Important tasks move your goals. A task can be one, both, or neither.

Read the full guide →
10Plan

How to Avoid Burnout as a Small Business Owner

"How do I fit more in?"Chapter 10 · Just a Bit More Horsepower: A Horse's Collapse

Work-life balance means managing your time and energy so work does not take over your health and the rest of your life. Burnout is what happens when it does. Boundaries and a stop-doing list are where the fix starts.

Read the full guide →

Part Two: Leading the People

Foundations 11 to 20
13Lead

How to Run a Meeting That Gets Results

"Why does every meeting take three hours and decide nothing?"Chapter 13 · The Meeting That Decided Nothing: A Horse's Council

Communication is sending a message and making sure it was understood. A meeting that gets results has an agenda sent ahead, confirmation that people heard it right, and action items: one task, one owner, one date.

Read the full guide →
14Lead

How to Resolve Conflict Between Employees

"How do you work with someone who's always wrong?"Chapter 14 · Everyone and Nobody: Two Crabs' Blame

Conflict resolution is working through a disagreement so the problem gets solved and the working relationship survives. Look past each person's position to their interest. Two opposite positions often share one interest.

Read the full guide →
15Lead

How to Motivate Employees: Intrinsic vs. Extrinsic Rewards

"How do I get people to work as hard as I do?"Chapter 15 · The Drivers Who Quit: A Raccoon's Revolving Door

Motivation is what makes people want to do good work. Extrinsic rewards come from outside, like pay and bonuses. Intrinsic rewards come from inside, like pride and mastery. Specific recognition by name feeds both.

Read the full guide →
19Lead

How to Give an Employee Feedback on Poor Performance

"How do I tell someone their work isn't good enough?"Chapter 19 · Nobody Knows How They Are Doing: An Ant's Silence

Performance feedback is regular, specific information about what a person is doing well and what to improve. It works best in a short weekly check-in, not saved up for a once-a-year review.

Read the full guide →
Every foundation gets a full chapter, a worksheet, and Dr. Paul's Nutshell summary in the book. Every term is in the glossary.Get all 20 on Amazon →

Read a Chapter: The Fox Who Was Too Busy to Run His Business

Every lesson in the book happens to an owner in the Fabled Forest. They act like stressed adults. You will recognize them. You may recognize yourself. Here is how Chapter 3 begins.

Chapter 3 · The Role of a Manager

Two Minutes Tomorrow: A Fox's Treadmill

"How am I supposed to run the place when I'm too busy running it?"

Fast Frankie came through the shop door the way he came through every door: already talking, already leaving. He was a blur of red fur with flour on his tail and a pocket that never stopped buzzing. He'd built Fast Frankie's Fire-Baked Pizza from one borrowed oven into a restaurant and a fleet of three food trucks, and he'd done it on pure motion and charm. Every customer in the forest knew Frankie. Every supplier had his number. Every cook in his kitchen came to him with every question, because Frankie was the only one who had the answers. He knew the sauce. He knew the suppliers. He was the only creature who knew the alarm code. Frankie didn't run his business. He ran inside it, all day, every day, like a wheel.

"Is it ready?" he said to the weasel, and then, into his buzzing pocket, "Two large, one plain, tell them twenty minutes," and then, to the weasel again, "Is it ready?"

"No," said the weasel.

"Tomorrow?"

"Maybe Thursday."

"Thursday." Frankie looked as if someone had told him the sun would be late. Then he saw Doctor Owl. "Doc! Doctor Owl. Great. Good. You were at the workshop. I had a question. About time." His pocket buzzed again. He looked at it. "Two minutes," he said. "I've always got two minutes. Tomorrow."

He was gone before he finished the sentence. They heard him outside, on the call, walking fast toward nowhere in particular.

The weasel looked at Doctor Owl. "He does that."

"I know," said Doctor Owl.

Frankie came back four times that morning.

The first time, he needed a part number for the truck, and he didn't have it, because it was written somewhere at the restaurant, and only he knew where. The second time, a cook named Marco called to ask where the extra flour was. Frankie told him, then told him again, then said, "Never mind, I'll come do it," and didn't. The third time, he asked Doctor Owl for two minutes, tomorrow. The fourth time, he sat down on an upturned bucket, put his head in his paws, and stayed there.

He didn't say anything for a while. His pocket buzzed. He let it.

"I haven't looked at the schedule in a month," he said finally. "Or the books. Or the trucks. I know that. I know I should. I just can't find the time."

"How many hours did you work last week?" asked Doctor Owl.

"All of them."

"And how many of those hours were spent looking at the business, instead of working in it?"

Frankie didn't answer right away.

"Zero," he said.

"Frankie," said Doctor Owl. "Who changes the oil in your trucks?"

"Nobody. I mean, I would. When I have time."

"Who checks your supplier bills?"

"Me. When I have time."

"Who makes the schedule?"

Frankie looked at the floor. "Marco keeps asking about that."

"How long has he been asking?"

"Six weeks." He said it quietly. "Maybe seven."

Doctor Owl was quiet for a moment.

"You are doing the job of every creature in your business," he said, "except one. You are the cook, the driver, the cashier, the delivery fox, and the only one who knows the alarm code. The one job nobody is doing is yours."

What job is that, and what happens when Frankie gives it one hour on Thursday at the Lone Oak? The rest of Chapter 3 is in the book.

Keep Reading on Amazon →

How Well Does Your Business Run When You Are Not There?

Four questions, one for each job of management. This is the same check that opens the Owner's Scorecard in the back of the book. Answer yes or no. Be honest.

  1. Plan

    Do I know my three priorities for tomorrow, and my three numbers for this season?

  2. Organize

    If I disappeared for a week, would the work still get done the right way?

  3. Lead

    Does every person on my team know how they are doing, and who to ask?

  4. Control

    When something goes wrong twice, do I fix the cause, or just the problem?

Your score: four yeses is a 5. Three is a 4. Two is a 3. One is a 2. None is a 1. Most owners start at a 2. That is fine. That is where the work starts.

Management and Leadership for Small Businesses

Management and Leadership for Small Businesses by Dr. Paul Borosky, DBA, MBA

Book 1 of Dr. Paul's Fabled Forest Business School Series. Each chapter follows one owner through one problem and teaches one real management idea, by its real name, so you recognize it in a class, a job interview, or a meeting. Watching over the forest is Doctor Owl, a careful old consultant who never answers a question without asking one first. He does not fix anyone's business for them. He helps them see it.

  • 20 chapters, one management foundation each, in two parts: the work and the people
  • Dr. Paul's Nutshell at the end of every chapter: what it is, why it matters, how to use it, and one question for you
  • Doctor Owl's Scrolls: 20 one-page worksheets you can copy and use
  • The Talon Way: seven shortcuts that sound reasonable and cost more than they save
  • A full glossary, with every management term defined
  • The Owner's Scorecard, to decide what to fix first and measure it 90 days later
Get the Book on Amazon →
For Business Students and Teachers

You do not need a business to use this book. Every idea works on a team, a club, a job, or a plan you have not started yet. Terms like delegation, span of control, and change management are taught by their textbook names and defined in the glossary, which makes the book a plain-English companion for intro business and management courses. Teaching a course and want to talk about using it? Call or text Dr. Paul at (321) 948-9588.

Dr. Paul's Fabled Forest Business School Series

Every book adds one line to the Owner's Scorecard. Management comes first because the other jobs need a business that runs. These four are available now.

See every title, including the Fabled Forest editions of Cash Flow Management and Budgeting, on Dr. Paul's business books page.

Common Questions About Small Business Management

What is small business management?
Small business management is running the business, not just doing its work. It covers four jobs: planning what gets done, organizing who does it and how, leading the people doing it, and controlling, which means checking the results and fixing what goes wrong. In a small business the owner usually does all four, often while also doing the daily work.
What are the four functions of management?
Planning, organizing, leading, and controlling. Planning decides what to achieve and how. Organizing sets up the people, roles, and processes. Leading directs and supports the team. Controlling checks the results against the plan and fixes the causes of problems. Every one of the 20 foundations on this page falls under one of these four jobs.
What is the difference between management and leadership?
Management is about the work: planning it, organizing it, and checking it. Leadership is about the people: directing, supporting, and motivating them. A small business needs both, usually from the same person. That is why Dr. Paul's book splits the 20 foundations into Managing the Work and Leading the People.
What should I fix first if my business depends on me?
Start with two foundations. Write a standard operating procedure for the one task only you know how to do, and protect one hour a week for working on the business instead of in it. Those two moves start pulling the business out of your head and onto paper.
Who is Management and Leadership for Small Businesses written for?
Small business owners, new managers, and business students. Every management idea is taught by its real textbook name, defined in a glossary, and paired with a one-page worksheet, so it works for an owner fixing a problem this week or a student preparing for an exam.
Why does the book use animal stories?
Because a definition does not stick and a story does. Each chapter follows one Fabled Forest owner, like a bee whose honey business stops when she catches a cold, through one real problem, then teaches the management idea behind the fix. Readers recognize themselves in the animals, which makes the lesson easier to remember and use.

Start with the book. Call when you want help building it.

Dr. Paul Borosky, DBA, MBA

Business Consultant, Author & Educator | 14+ Years | 1,000+ Clients Served

DBA, National University MBA, Focus in Finance, Webster University

Dr. Paul Borosky, DBA, MBA is a business consultant, author, and educator, and the founder of Quality Business Plan. He helps small business owners across the United States and Canada with business planning, financial modeling, fractional CFO services, and the everyday problems of businesses that depend too much on their owners. He is the creator of Dr. Paul's Organize-Plan-Grow™ Strategy, author of numerous published books on Amazon including Dr. Paul's Fabled Forest Business School series, and publisher of over 1,000 business-focused videos on YouTube. He has taught as an adjunct college instructor and teaches in Florida public schools.

14+
Years Experience
1,000+
Clients Served
$100M+
Projects Funded
1,000+
YouTube Videos

This page is for general educational purposes only. It is not legal, financial, tax, accounting, or other professional advice. The Fabled Forest, its characters, and its businesses are fictional. For decisions about your own business, consult a qualified professional.