The SME owner: a self-portrait. 13 challenges entrepreneurs face and ways of dealing with them
This article is based on observations from more than 240 consulting projects, on my mentoring work and on 33 years of management experience, including as CEO of Nike Poland and Telepizza Poland. Here are 13 traits of the typical SME owner, and ways of overcoming them in the day-to-day work of the company.
1. Brave – after all, they run a company rather than working for someone else
Courage makes it possible to build a business, but it often also leads to overestimating your own abilities.
What can be done about it?
Regularly analyse the risk of key decisions.
Seek the opinions of people who are not emotionally attached to the company.
Draw up scenarios: optimistic, realistic and pessimistic.
Learn to make decisions that are bold but financially calculated.
2. Has a weak grasp of finance
An owner does not have to be an accountant, but should understand the mechanics of profit, cash and profitability.
What can be done about it?
Analyse five key financial indicators every month.
Build a simple owner’s dashboard.
Learn the difference between profit and cash flow.
Make decisions on the basis of data, not intuition alone.
Review the economics of the business once a quarter.
3. Distrustful of outside help
Many entrepreneurs have had their fingers burnt by training courses, consultants or advisers.
What can be done about it?
Look for recommendations from entrepreneurs you trust.
Start working together on small pilot projects.
Judge advisers by their results, not by their presentations.
Build your own advisory board made up of business practitioners.
4. Low job satisfaction
An entrepreneur often achieves more than most people and yet does not feel fulfilled.
What can be done about it?
Define your own definition of success.
Separate business results from your sense of self-worth.
Take stock of your achievements regularly.
Set aside time for activities that give you energy.
Find space for self-reflection.
5. Overworked
The company grows, but the owner becomes the bottleneck.
What can be done about it?
Track how your time is actually used.
Eliminate low-value activities.
Build processes instead of “firefighting”.
Delegate responsibility, not just tasks.
Measure the owner’s working hours as a KPI.
6. A micromanager
Control gives a sense of security, but it limits the company’s growth.
What can be done about it?
Hire the right people, especially for management positions.
Define responsibilities clearly.
Introduce KPIs for each role.
Regularly hold people to account for results instead of checking up on what they do.
Accept employees’ mistakes as a cost of development.
Build trust through your own behaviour.
7. Manages people poorly
The biggest problems in companies are usually not technical but human.
What can be done about it?
Learn to hold development conversations.
Develop your emotional intelligence.
Ask more questions than you give answers.
Recognise employees’ effort and progress.
Build a culture of accountability rather than control.
8. Lonely
It is often lonely at the top.
What can be done about it?
Find a mentor or a mastermind group.
Talk regularly to other business owners.
Use coaching or mentoring.
Build a circle of trusted business partners.
Do not make every decision alone; make them with the help of a competent team.
9. Resistant to change
An entrepreneur is often a hostage to their own success.
What can be done about it?
Challenge your business assumptions once a year.
Look for arguments against your own ideas.
Analyse market trends regularly.
Test new solutions on a small scale.
Reward experimentation.
10. Prefers to blame external factors
This is a natural defence mechanism.
What can be done about it?
Focus on what you can really influence.
Practise thinking in terms of responsibility.
After every setback, answer the question: “What could I have done better?”
Draw up a list of actions instead of a list of excuses.
Strengthen your sense of agency.
11. Dependent on their own company
Without the company, they do not know who they are.
What can be done about it?
Develop interests outside business.
Build relationships that have nothing to do with work.
Find activities that give you a sense of worth beyond the role of owner.
12. Confuses activity with effectiveness
They are busy all day, but do not always move the company forward.
What can be done about it?
Define the three most important goals for the week.
Measure the results of what you do.
Limit the number of initiatives you start.
13. Neglects their own energy
They try to manage the company without managing themselves.
What can be done about it?
Look after your sleep, exercise and recovery.
Schedule time for strategic thinking.
Treat your own energy as a business resource.
Most SME owners have no problem with hard work, courage or determination. The paradox is that the very qualities that enabled them to build the company often hold back its further development. An entrepreneur’s success does not depend solely on how they develop the business. Increasingly, it depends on how they develop themselves.