How to Build a Leadership Training Program for Emerging Leaders in Small Businesses

As your small business grows, you’ll need leaders who can guide teams, solve complex problems, and steer your company toward its future goals. Developing leadership internally can be a highly cost-effective and impactful strategy, ensuring that your most talented employees grow into the management roles they’ll need to fill as the business expands.

This guide will walk you through the steps to identify high-potential employees, create hands-on leadership opportunities, and build a structured leadership development program using mentorship, stretch assignments, and accessible learning resources. By investing in your emerging leaders, you’ll build a pipeline of skilled managers ready to lead your business to new heights.

Leadership training isn’t just for large corporations; it’s critical for small businesses too, particularly as they scale. When your business is small, leadership roles tend to be informal, with one or two people making most of the decisions. But as the company grows, those informal structures can become bottlenecks that slow down progress. This is where leadership training comes in—it helps create a stronger foundation for distributed leadership, where multiple people can take on responsibility and lead different parts of the business effectively.

Leadership development also boosts employee retention. High-potential employees who see a path for growth and development are more likely to stay with the company long-term, reducing costly turnover. Moreover, having a leadership development program gives your company the ability to promote from within, saving the time and expense of hiring externally.