Building Your First Management Layer (Without Hiring Experienced Managers)

Growing Your Team from 7-8 to 12-15 People? Build (and Develop) Your First Management Layer

For owner-managed businesses, hitting 7-8 team members is a crucial milestone. At this size, directly managing everyone becomes unmanageable, and it’s time to build your first layer of managers. This essential step allows you to focus on strategy, business growth, and leadership, rather than being tied up in daily operations.

But here’s the reality for many small business owners at this stage:

Your new managers are often promoted from within your existing team.
They likely have little or no prior management experience.
Budget constraints make hiring experienced managers externally a challenge unless you already know and trust someone from prior connections.

This means the responsibility for developing these first-time managers falls squarely on your shoulders. Without investing in their growth, your team will struggle, and your business could stall at this bottleneck.

How to Develop Your First Managers

Developing your first management team is one of the most critical steps in scaling your business. A proven framework like the Situational Leadership Model by Ken Blanchard and Paul Hersey can help you guide your new managers through their journey.

Here’s how to apply it:

1️⃣ New Manager (Low Competence, High Commitment)

Your freshly appointed manager is likely enthusiastic but inexperienced in leading a team.

Challenges: They’re unsure how to delegate, motivate, or lead effectively.
Your Approach: Use a Directing style. Provide clear, step-by-step instructions and stay hands-on as they learn the basics of leadership. This will help build their confidence.

2️⃣ Learning Manager (Some Competence, Low Commitment)

As your manager begins to gain experience, they might feel overwhelmed or discouraged by the challenges of leadership.

Challenges: They may lack confidence or struggle with problem-solving independently.
Your Approach: Shift to a Coaching style. Balance guidance with encouragement, helping them tackle challenges while building their skills.

3️⃣ Emerging Leader (High Competence, Variable Commitment)

Your manager has started to develop competence but may still second-guess themselves when facing major decisions.

Challenges: Uncertainty in decision-making or fear of making mistakes.
Your Approach: Use a Supporting style. Empower them to make decisions independently while providing reassurance and constructive feedback.

4️⃣ Confident Manager (High Competence, High Commitment)

Your manager is now capable and confident, ready to lead their team with minimal input from you.

Challenges: None at this stage – they’re ready to fly!
Your Approach: Adopt a Delegating style. Trust them with autonomy, focusing on results rather than micromanaging processes.

Why Building a Management Team is Critical for Small Business Growth

As a small business owner, scaling from 7-8 team members to 12-15 requires a significant mindset shift. At this stage:

✅ You can no longer do it all yourself. Delegation becomes essential to prevent burnout and keep the business moving forward.

✅ Bottlenecks start to slow growth. Without managers to oversee day-to-day operations, decisions and processes get delayed.

✅ A strong management team enables sustainable growth. Developing 2-3 capable managers allows you to scale to 18-20 employees before requiring another restructure.

✅ You build a leadership team to drive growth. Your managers act as partners in scaling the business, taking ownership of their teams and projects.

Your Role as a Business Owner

At this stage, you can’t expect your first-time managers to simply “figure it out.” Leadership development needs to be an active, intentional process. Here’s how to get started:

1️⃣ Identify High-Potential Team Members

Look for team members who demonstrate leadership potential, such as strong communication skills, initiative, and reliability.

2️⃣ Diagnose Their Leadership Stage

Use the Situational Leadership framework to assess where each potential manager is in their journey – are they new, learning, emerging, or confident?

3️⃣ Actively Support Their Growth

Provide structured feedback, leadership training, and regular coaching. Investing in their development will pay off through better team performance and smoother operations.

The Big Picture: Why Investing in Your First Managers Matters

Building and developing your first layer of managers is about more than delegation. It’s about leadership and creating a foundation for sustainable growth. When you invest in your management team:

Your business thrives: Teams operate more effectively, and productivity improves.
Your culture strengthens: Managers who feel supported become champions of your vision and values.
You gain freedom: With operations in trusted hands, you can focus on strategy, innovation, and long-term goals.

Need Help Developing Your First Managers?

Unsure where to start or how to support your managers as they step into leadership? At Cloud Busting, we specialise in helping small business owners like you build strong management teams, overcome growth challenges, and achieve sustainable success.

🌟 Get in touch today to explore how we can help you take your business to the next level.