The business is built around the intuition of the owner who specialises in a certain line function. Dealing with staff issues are often emotional and difficult. It removes the focus from its core business and they don't pay attention to complaints or suggestions due to production pressure which blows up at a later stage. This results in inconsistency and lack of direction within the business.

2. POOR TIME MANAGEMENT

The owner is often so busy working that he or she does not manage the staff effectively. The business cannot run without them because all the policies, systems and procedures are in their heads.

3. LACK OF CONSISTENCY (FAIRNESS)

Due to the lack of documented policies and procedures. The owner cannot hope to remember everything, as the business grows.

4. POOR STAFF SELECTIONS

Research has shown that for a business to succeed, one needs to get the right team. Poor selections can be very costly and damaging, especially if they remain with the business for any length of time. The chances of poor selections can be greatly reduced by the use of competency based recruitment, interviewing techniques and personality profiling.

5. NO CONTRACTS OF EMPLOYMENT

Small businesses often do not have contracts or have poorly worded contracts which do not protect them. Fixed term contracts are also sometimes abused resulting in unfair dismissal disputes.

6. NO INDUCTION OF NEW STAFF

New employees are not taught the right way in the beginning and they pick up bad habits from existing staff. Mini Khumalo tells a delightful story of how he was inducted into his first job. The foreman took him to the work station where he was to work and simply left him with another worker. The worker taught him where to hide from the foreman in order to avoid work and all the excuses he needed to get by!

7. PROBATION IS NOT PROPERLY USED

Probation should be used to screen out poor selections. If you have made a poor selection, as long as fair procedures are followed, the sooner this is remedied the better for all concerned, including the employee. Being in the wrong job is no good for one's self esteem.

8. POOR ORGANIZATION STRUCTURES

Structures evolve which are often not logical or conducive to good business. Sometimes this results in over or understaffing. Unequal distribution of work results in some employees becoming disgruntled and others not pulling their weight.

9. LACK OF CONSISTENCY AND FAIRNESS

Inconsistency is very bad to moral and can lead to arbitration awards.

10. NO PERFORMANCE MANAGEMENT

Staff are not told where they stand and how their performance can be improved. In some cases this results in over reliance on threats of punishment to get work done.

11. HIGH ABSENTEEISM AND SICK LEAVE ABUSE

Often these are not properly monitored and there is no structured approach to dealing with it.

12. POOR UNDERSTANDING OF LABOUR LAW

Particularly disciplinary procedures. This results in dismissals being overturned with unnecessary cost implications and sometimes serious consequences. Failure to comply with Basic Conditions of Employment Act requirements can also result in problems.

13. POOR CONFLICT MANAGEMENT

This is often exacerbated by no formal procedure for handling complaints and grievances, including tricky situations such as sexual harassment complaints.

14. INSUFFICIENT TRAINING AND STAFF DEVELOPMENT

Even in a small business, today people need to be constantly updating their knowledge and skills. There are several initiatives to assist small business owners but often the view is "We can't afford the time".

15. NO SUCCESSION PLANNING

When the owner goes, there is nobody capable of taking over the management of the business.