How to Hire a General Manager for Your SMB

The GM is the most important hire in a small business. Not the CFO. Not the sales director. The GM. They sit at the intersection of sales and operations, own the P&L, and are the only person besides you who can actually run the business.

I've made over 1,300 hires in my career and helped place 70+ operators through Smooth Operators Search. Here's the playbook I use for finding and hiring a General Manager.

What Makes a Great GM

A great GM has three things:

1. P&L evidence. They've owned a number before. Revenue, margin, EBITDA—something they were accountable for. Not "supported" or "contributed to." Owned. If they can't tell you their numbers, they're not a real operator.

2. Sales + operations experience. The GM sits where revenue meets execution. They need to understand how work gets sold and how work gets done. The best ones have done both—sold jobs and run crews. They know that selling more doesn't help if you can't deliver, and efficiency doesn't matter if you have no work.

3. Field presence. In the trades, your GM needs to be comfortable in a truck, on a job site, and in front of a customer. If they've never managed an hourly workforce, they'll struggle with the reality of field operations. Techs and crews know when someone doesn't understand their world.

GM vs. Ops Manager vs. Controller

A common mistake: owners hire a "GM" who's actually an ops manager or controller. Here's the difference:

| Role | P&L Ownership | Primary Focus | Typical Background | |------|---------------|---------------|-------------------| | GM | Yes, full | Sales + Ops, runs the business | Operations, military, field | | Ops Manager | No | Execution, field operations | Crew lead, supervisor | | Controller | No | Finance, reporting, cash | Accounting, finance |

In ETA (Entrepreneurship Through Acquisition) circles, there's advice to "hire a controller first." That works for software or services businesses where the owner can still do sales and ops. In the trades, you usually need a GM first. The owner is already doing controller work (or it's outsourced). What they can't do is be in two places at once. They need someone to run the operation so they can focus on growth.

The Interview: Cases That Reveal Operators

Standard interview questions don't work for GMs. "Tell me about a time you led a team" gives you polished stories. Cases give you real insight.

Here are three I use:

1. Dispatch Chaos

"It's 7am Monday. Three techs called in sick. You have 12 jobs scheduled, two of them are high-value commercial clients. You're the GM. Walk me through your first hour."

What you're looking for: Prioritization. Communication. Problem-solving under pressure. Do they cancel jobs, reroute techs, call in favors? Do they call the customers themselves or delegate? Do they just panic?

2. Margin Leak

"You're running a branch with $3M revenue and 15% net margin. Over the last two quarters, margin dropped to 10%. Revenue is flat. Walk me through how you'd diagnose the problem."

What you're looking for: Financial fluency. Do they think about labor costs, material costs, pricing, callbacks, efficiency? Do they ask what changed? Do they understand the difference between gross margin and net margin? A real operator digs into the numbers.

3. Toxic High-Producer

"Your top salesperson brings in 40% of revenue but treats the service team like garbage. Techs are quitting. Other salespeople resent him. He knows he's untouchable. What do you do?"

What you're looking for: Leadership courage. Culture matters. Do they tolerate bad behavior because of numbers? Do they have a plan to address it? Have they dealt with this before?

Red Flags to Watch

• No numbers. If they can't tell you revenue, margin, or headcount from their past roles, they weren't really owning the P&L.
• Corporate refugees. Be careful with people leaving big companies for SMBs. Some thrive; many can't handle the lack of structure and resources.
• Blame language. "My boss didn't support me." "The team couldn't execute." "The market changed." Operators own outcomes. They don't make excuses.
• No hourly workforce experience. Managing field techs and office workers are different skills. If they've only managed white-collar teams, expect a learning curve.
• Too smooth. The best operators are direct, not polished. If the interview feels like a sales pitch, be skeptical.

The 30/60/90 Day Plan

Once you hire, structure their first 90 days:

Days 1-30: Learn

• Ride along with techs
• Shadow dispatchers and CSRs
• Review every P&L line item
• Meet every team member 1:1
• Sit in on sales calls
• Ask questions, don't make changes

Days 31-60: Identify

• Present findings to owner
• Identify top 3 problems
• Propose solutions with timelines
• Start building relationships with key performers
• Flag any personnel issues

Days 61-90: Act

• Implement first initiative
• Make one hard call (fire, restructure, change process)
• Establish weekly operating rhythm
• Start owning numbers in leadership meetings
• Build credibility with the team

The goal is to make the first 90 days survivable for both of you. Don't expect them to "hit the ground running." Expect them to learn the business before they change it.

FAQ

Q: What should I pay a GM?

Depends on market, revenue, and complexity. In the trades, $120K-$180K base is common, plus bonus tied to performance. GMs for $5M businesses earn less than GMs for $20M businesses. Don't underpay—you'll get managers, not operators.

Q: Should I hire internally or externally?

Internal promotions are risky. Your best technician or supervisor might make a terrible GM. The skills are different. If you have someone internally who already thinks like an owner—who's already managing people and solving problems without being asked—promote them. Otherwise, hire externally.

Q: How long should the search take?

At Smooth Operators, we introduce qualified candidates within 7-14 days. Most placements close in 14-60 days. Rushed searches end badly. So do searches that drag on forever. Set a timeline and stick to it.

Q: What if the hire doesn't work out?

That's why guarantees matter. We offer a 180-day replacement guarantee. If the GM leaves or is terminated within 180 days, we run the replacement search at no additional cost.

The Bottom Line

The GM is the most important hire in a small business. They own your P&L, run your operation, and determine whether you can ever step back. Get it right and you unlock growth. Get it wrong and you're stuck.

Look for P&L evidence, sales + ops experience, and field presence. Use cases in interviews. Watch for red flags. Structure the first 90 days for success.

And if you need help finding the right operator, that's what we do. 70+ placements. Two-thirds veterans and military spouses. 180-day guarantee.

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Related: When's the Right Time to Hire an Operator?

Contact: intake@smoothoperators.co