Navigating the hardest parts of being a manager

Running your own business may mean being your own boss, but you also need to manage and lead your team once you start hiring. Balancing the duties of leadership while thinking about how to drive your business forward can be tricky.

Even experienced entrepreneurs admit that management brings challenges they didn’t expect. Here are some of the hardest parts of being a manager – and how to navigate them without losing your focus or your sanity. This article is brought to you by the UK’s leading company formation agent, 1st Formations, we can help you set up your business with the right foundations for success.

How to delegate after doing everything yourself

When you start a business, you typically wear lots of hats as you get things off the ground. Sales, marketing, finance, operations – you can end up doing a bit of everything.

For business owners used to getting things done, it can be hard to give up control. As your business grows, this approach quickly becomes unsustainable for one person to handle it all by themselves. You need to trust your new hires to do their jobs – otherwise you could alienate them by micromanaging.

You can find yourself itching to step in when something isn’t done “your way”. But micromanagement only slows your team down and undermines their confidence. Instead, focus on hiring capable people, and letting them find their own approach.

It helps to remember that leadership is a skill and not a default setting, so you need to actively work at it. Give yourself time to adapt – and accept that your job is to guide now, not to do.

Having difficult conversations

Sooner or later, every business owner faces uncomfortable conversations. For example, addressing poor performance, resolving conflicts, discussing employee pay, or letting someone go. These conversations are never easy, but avoiding them almost always makes things worse.

Approach these situations calmly and with facts, not emotion. Be clear about what needs to change and why, and show that you’re willing to help the person improve. Provide clarity to your team members by being open and transparent.

Over time, you’ll find that handling issues directly helps build trust. Your team will see you as consistent and confident – the exact qualities that make a good leader.

Making unpopular decisions

As the owner and manager, you’ll often have to make calls that not everyone agrees with. Budget cuts, staffing changes, pricing decisions, or shifts in direction are common examples. It can feel personal when employees question or push back against your choices, but it’s part of leadership to take these thoughts onboard while offering reassurance.

Explain the reasoning behind your decisions and how they will benefit the business in the long run. People don’t need to like every choice, but helping them at least understand why can go a long way.

It also helps to create an environment where feedback is welcome. If your team feels heard, they’re more likely to respect your judgement – even when you have to say no.

Balancing compassion and authority

You want your team to feel comfortable coming to you, but you also need to make sure boundaries are respected.

It’s tempting to be the “friendly boss”, especially in a small team. However this can backfire later when you need to have difficult conversations, or if people start taking advantage of your flexibility. Be kind and supportive without being a pushover by using consistency. Set clear policies and make sure you follow through on promises. Ensure the same standards apply to everyone so you’re not seen to be playing favourites.

Lead with empathy and fairness to earn genuine respect rather than forced obedience. This will help you build a productive team that can rise to the challenges of growth as you begin to scale.

Managing your own stress and workload

Being the boss doesn’t make you immune to burnout. Managing people often adds extra stress to running a business, especially if you’ve never done it before. Suddenly, you’re responsible for salaries, morale, performance, and future growth.

Make some HR and admin hires to support you if your company grows too big for you to handle it all by yourself. This also provides another avenue for your team to raise concerns.

Stay effective by protecting your time and energy. Delegate operational tasks wherever possible and block time for strategic thinking. Also don’t be afraid to switch off occasionally so you can rest and stay fit for the long haul.

If you find yourself struggling to switch from “doing” to “leading”, consider setting aside a few hours each week to focus solely on management. You can use this time for reviewing performance, planning ahead, or mentoring staff. Treat leadership as part of your core work, not something you squeeze in around everything else.

Developing your management style

Every business owner leads differently, and that’s okay. The key is finding a management style that feels authentic and fits your business culture. Some teams thrive with a collaborative, hands-on leader, while others prefer autonomy.

Whichever style you lean towards, communication is non-negotiable. Regular check-ins, honest feedback and celebrating wins all go a long way to keeping morale high. Your actions and attitude set the tone for everyone else.

Managing people is often the hardest part of running a business. It pushes you to grow in ways that spreadsheets and sales figures never could. You’ll make mistakes, have awkward moments and face tough calls, but every challenge is a chance to become a stronger, more empathetic leader.

The key is to stay self-aware and keep learning. Management isn’t something you master overnight – it’s a continuous process of adapting, improving and leading by example.

Formation is at the beginning of every business journey

When building your first team, putting the right systems in place from the start makes a huge difference. Working with an experienced company registration service can help you set up battle-tested systems for hiring, payroll, compliance, and management. Focus on leading your team and growing your business – not getting bogged down in admin.