In the fall of 2003, I was interviewing an insulation installer to do some work on one of my restoration projects. As I asked him questions about his business, he proudly told me about his second generation company and how his father had grown it to over 30 employees and 20 service vehicles. When I asked him how big they were at that time, he humbly replied, “Two - myself and my son.” Too young to know any better, I asked “What happened?” He proceeded to tell me how his father had hired a General Manager to help him run the business. That individual embezzled most of the profits, costing his father his life’s savings. He closed with a comment that sticks with me to this day: “My father spent a lifetime creating customer loyalty but absolutely no time creating employee loyalty.”
That was my first insight into issues with a General Manager (GM) in a small business setting. The role of the GM in privately owned and operated small businesses is largely misunderstood. Perhaps this is due to the ambiguity of the title, misunderstanding of the job duties, or even skepticism toward the position’s value. Regardless of the reason, this very important executive-level position remains almost mythical in the minds of many entrepreneurs.