Strategy
The Juggling Act of Leading an SME: When to Focus Inside vs. Outside the Business
By Shay Lynch
February 19, 2025
Key Highlights
📌 As an SME leader, do you know where your focus is most needed?
🔹 Many leaders struggle to balance internal operations and external growth, leading to inefficiencies or missed opportunities.
🔹 Internal responsibilities include vision, team culture, operations, and financial health.
🔹 External responsibilities focus on sales, marketing, partnerships, and market positioning.
🔹 Great leaders don’t do everything—they prioritise based on what the business needs most at the time.
How to flex between both:
✅ Focus externally when scaling, expanding markets, or building partnerships.
✅ Shift internally when operations need stability, culture needs reinforcement, or finances require attention.
✅ Adapt to challenges—crisis, growth, and change require different leadership approaches.
📢 Where is your leadership focus right now—inside the business, or out in the market? Let’s discuss! ⬇️
As a leader, do you know what your responsibilities are—and are they clear?
Introduction
I’ve been speaking with SME leaders recently, and their perspectives on leadership roles vary widely. Some see themselves as visionaries, others as problem solvers, and many feel they must be involved in every aspect of the business.
But what should an SME leader’s role actually be?
What are the boundaries?
And then sometimes leaders align themselves where their strengths take them, is that always correct?
Unlike in large corporations, where leadership is more defined and hierarchical, SME leaders wear multiple hats. This is both an advantage and a challenge—it provides agility but can also lead to overwhelm and burnout.
So, what’s the right balance?
While there’s no absolutes as an SME Leader, here’s a structured look at the internal and external responsibilities of an SME leader worth consideration, and how to flex between them based on business needs.
Internal Responsibilities: Driving the Business from Within
🔹 Vision & Strategic Direction
The leader is responsible for setting a clear, actionable vision that aligns the business with long-term goals. Without it, teams lack direction, and daily tasks lose strategic purpose. However, a vision without execution is just a dream—so this must be paired with a realistic roadmap for achieving results.
🔹 Decision-Making & Prioritisation
Every day presents decisions that will either push the business forward or slow it down. A great SME leader knows what to prioritise and delegate, ensuring focus remains on high-impact activities rather than getting lost in operational minutiae.
🔹 Team Development & Culture Building
Hiring and retaining the right people is crucial. Culture isn’t built overnight—it’s shaped daily through leadership behaviour, communication, and trust. A leader must act as a coach, empowering employees while also fostering a culture of accountability, autonomy, and continuous learning.
🔹 Operational Excellence & Efficiency
Processes and workflows matter—without them, growth becomes chaotic. Leaders don’t need to micromanage every detail, but they should ensure that operations run smoothly, teams work efficiently, and customers experience seamless service delivery.
🔹 Financial Discipline & Risk Management
In SMEs, cash flow is king. Leaders must stay aware of financial health, ensuring that money is allocated to drive sustainable growth. This includes balancing cost efficiency with necessary investments, anticipating financial risks, and ensuring the company remains financially resilient.
External Responsibilities: Expanding the Business Beyond the Four Walls
🔹 Sales, Marketing & Customer Engagement
Leaders must stay close to the market. Whether through direct client conversations, networking, or analysing customer feedback, an SME leader should always have a pulse on what customers want and need.
🔹 Brand Positioning & Market Visibility
In a competitive landscape, positioning matters. SME leaders must represent their business, ensuring that the brand stands out in the market. This might involve thought leadership, speaking engagements, or simply making connections with the right people.
🔹 Strategic Partnerships & Alliances
No business operates in isolation. Leaders should constantly seek out growth opportunities through partnerships, collaborations, or new market expansions. Aligning with the right people can accelerate success.
🔹 Industry & Competitive Awareness
What are competitors doing? What industry trends could impact the business? Leaders must remain curious and informed, constantly looking ahead to navigate shifts before they become problems.
How to Flex Between Internal & External Focus
The key to balancing these responsibilities is knowing where help is needed most.
✅ Growth Mode → Focus more on external areas—scaling, partnerships, and market expansion.
✅ Operational Challenges → Prioritise internal stability—fix inefficiencies, reinforce culture, and strengthen financial health.
✅ Crisis Mode → Shift flexibly—ensure strong internal leadership while externally protecting reputation and customer trust.
📌 Great leaders know when to step in and when to step back. They don’t do everything; they make sure everything gets done.
Final Thoughts: Where Are You Needed Most?
Leadership in an SME isn’t just about juggling multiple roles—it’s about knowing when to step up in different areas.
If you’re always in the day-to-day operations, who is steering the long-term direction?
If you’re only focused externally, is your team aligned and operating at its best?
A great leader isn’t just one thing—they are strategic, adaptable, and clear on where their impact is most needed.
💡 Where do you think your leadership focus should be right now—internal or external? Let’s discuss. ⬇️
