What Does a Manager Do? The Role of a Manager in a Small Business

What Does a Manager Do?

Textbook Definition

A manager is responsible for achieving results through other people by performing the four functions of management: planning, organizing, leading, and controlling the work of the organization.

In Plain English

A manager runs the business instead of only doing its work. Doing the tasks is working in the business. Planning, organizing, leading, and checking the work is working on it. Somebody has to do the second job, or nobody is steering.

Why Is Working Only "In" the Business a Problem?

When every hour goes to the work in front of you, nobody is steering. The same problems repeat. Bills go unchecked. The people who want to help never get asked. You end every week exhausted and no further ahead.

This is the job every textbook describes with the four functions of management: plan, organize, lead, control. In a small business, you will often do the work and the managing. That is fine. The problem is when the work eats every single hour and the managing gets none.

Signs you have this problem:

  • You have not looked at the schedule, the books, or the equipment in a month.
  • The same breakdown happens over and over and nobody owns the fix.
  • You say "two minutes, tomorrow" more than once a day.
  • An employee has asked to take something off your plate, more than once.
  • You find out about problems only when a customer complains.
  • You worked every hour last week and spent zero of them looking at the business.
If you cannot remember the last time you worked on the business instead of in it, you are not managing yet. You are just very busy.

What It Looks Like When Nobody Is Running the Place

From the Fabled Forest · Chapter 3

Fast Frankie the Fox built a pizza business from one borrowed oven into a restaurant and a fleet of three food trucks. Every customer knew him. Every supplier had his number. Every cook brought him every question, because he was the only one with the answers.

His trucks broke down three times in a month because nobody checked the oil. His best cook had been asking to make the schedule for weeks. Frankie had not looked at the books in a month. He worked every hour there was, and not one of them was spent looking at the business.

Doctor Owl did not tell him to stop making pizza. He gave him one hour a week, at a table with no oven, and five questions to answer out loud. In that first hour, Frankie found a problem that had been costing him money for two months.

Frankie's story is Chapter 3 of Management and Leadership for Small Businesses, Book 1 of Dr. Paul's Fabled Forest Business School Series.

How to Start Working On Your Business: The Owner's Hour

You cannot find time to work on your business. You have to take it. Start with one protected hour a week.

  1. Put one hour a week on the calendar.

    Treat it like a customer appointment you cannot cancel. Same day, same time, every week.

  2. Go somewhere the work cannot reach you.

    Not the counter. Not the kitchen. Leave the phone in another room. The point is to look at the business from above, and you cannot do that from inside it.

  3. Bring the paper.

    Bills, receipts, delivery slips, the schedule. Put the bills next to what actually arrived. That is where money hides.

  4. Answer five questions out loud.

    What keeps going wrong? What is coming up? Who is waiting on me? What did I spend that I did not expect? What one thing will I fix this week?

  5. Pick one fix and give it to someone.

    One fix, one owner, checked next week. Usually the someone is the person who has been asking to help.

Dr. Paul's Insight

The most common mistake is letting the hour get swallowed by an emergency the very first week. There will always be an emergency. Protect the hour like payroll. Across 1,000+ clients, Dr. Paul has watched the owners who keep this one hour find more money in the first month than any new sales campaign.

Worked Example: What One Hour a Week Is Worth One hour a week is 52 hours a year, about six and a half working days. Say the hour catches one supplier who bills you $150 a month for product you never received. $150 × 12 months = $1,800 a year recovered from one comparison of bills to delivery slips. That is about $35 for every hour you spent, from a single fix, before counting anything else you catch. Figures are an illustration to show the math, not a projection for your business.

Sample: The Owner's Hour Agenda

Print this and bring it to your hour every week. Fill it in by hand.

When: Thursday, 3:00 to 4:00Where: Anywhere the work cannot reach youPhone: Another room
1. What keeps going wrong?The thing that broke more than once this week, and who owns fixing it.
2. What is coming up?Deadlines, big orders, staff vacations, and renewals in the next two weeks.
3. Who is waiting on me?Employees, customers, and vendors who need a decision or an answer from you.
4. What did I spend that I did not expect?Put each bill next to what was actually delivered. Circle anything that does not match.
5. What one thing will I fix this week?One fix. One person who owns it. Check it at next week's hour.

Sample for illustration. Keep the five questions; adjust the time and place to your week.

Video: The Owner's Hour, Step by Step

Video Coming Soon

What Does a Manager Do? The Role of a Manager in a Small Business

Dr. Paul walks through the five questions and the owner's hour agenda on screen.

What Is Hiding in the Shoebox?

Chapter 3 · The Role of a Manager

Two Minutes Tomorrow: A Fox's Treadmill

The fourth question took the longest. What did I spend coins on that I did not expect? Frankie tipped the shoebox out on the table and, because Doctor Owl only looked at him, began to sort. Bills on the left. Delivery slips on the right. He matched the first week. Forty sacks billed. Thirty-six signed for, in Marco's handwriting.

"That's a mistake," he said.

Was it a mistake? Find out what Frankie's first owner's hour turned up, and get the five-question scroll, in Chapter 3. Book 1 of Dr. Paul's Fabled Forest Business School Series.

Get the Book on Amazon →

Role of a Manager Questions

What are the four functions of a manager?
Planning, organizing, leading, and controlling. Planning decides what to achieve and how. Organizing sets up people, roles, and processes. Leading directs and supports the team. Controlling checks results against the plan and fixes what is not working.
What is the difference between working on and in your business?
Working in the business means doing the tasks: making the product, serving customers, answering the phone. Working on the business means planning, organizing, leading, and checking that work so it keeps running well. Owners need some of both, every week.
What does a small business owner actually do all day?
Too often, everything except managing. Most owners spend their days doing the work, answering questions, and putting out problems. The managing part, looking at the numbers, fixing repeat problems, and deciding what comes next, gets squeezed out unless it has its own protected time.
What is the owner's hour?
One protected block of time each week for working on the business, away from where the work happens. In the hour, you answer five questions: what keeps going wrong, what is coming up, who is waiting on you, what you spent that you did not expect, and what one thing you will fix.

Written by Dr. Paul Borosky, DBA, MBA, business consultant, author, and educator with 14+ years and 1,000+ clients served. Want a second set of eyes at your owner's hour? Dr. Paul works with owners one-on-one.

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