Why Should Business Owners Develop an Effective Management Team? As a business coach, you are going to be dealing with business owners who decide everything themselves.  You need to explain to them that this limits growth and they need to start developing a management team. Here's why... As an SME grows it becomes more difficult for the owner to control and decide everything in the way they used to.  They start to become the main constraint on further growth. Sensible business owners address this issue by delegating more.  They introduce a more formal structure with reporting lines and clearer accountabilities.  A layer of management starts to form – possibly even people other than the owner with the title “director”.  The organisation moves through the difficult transition from everyone reporting to the owner to something more hierarchical. The owner introduces regular meetings where those people who report direct to her review business performance.  This is a big step forward,