Which Job Title is Correct When Running a Small Business?

When you start and run a small business, one of the things you might not have considered at first is what to call yourself. Job titles matter more than you might think—they can influence how customers, suppliers, and even employees perceive you. But which job title is correct? Should you be a Director, Owner, Founder, or something else entirely? In this guide, we’ll explore the different options, what they mean, and how to choose the right one for your business.

Why Job Titles Matter in a Small Business

A job title is more than just a label; it carries weight in professional settings. The right title can:

• Help establish credibility with customers, investors, and partners
• Make it clear what your role is within the company
• Affect how your business is perceived
• Impact networking and business relationships

For small business owners, choosing a job title is often less about hierarchy and more about making the right impression.

Common Job Titles for Small Business Owners

There is no single “correct” job title, but here are some of the most commonly used ones:

Owner

The title “Owner” is one of the most straightforward and commonly used by small business operators. It makes it clear that you own the business, but it doesn’t say much about your specific role.

When to Use It

• • If you are a sole trader or run a small family business
  • When you want to keep things informal and approachable
  • If you don’t have any employees and manage everything yourself

Pros and Cons

Pros:

• • Simple and easy to understand
  • Makes it clear that you are in charge

Cons:

• • Might not sound as professional in corporate or formal business settings
  • Doesn’t specify what you actually do in the company

Founder

“Founder” is a popular title for entrepreneurs, particularly for startups and creative businesses. It emphasises that you started the company, which can be useful if your personal story is part of the brand.

When to Use It

• • If you want to highlight that you started the business
  • If your company is in a growth phase and you want to attract investors or partners
  • When networking with other entrepreneurs

Pros and Cons

Pros:

• • Highlights your entrepreneurial role
  • Works well in creative and innovative industries

Cons:

• • Doesn’t clarify whether you still run the business or just founded it
  • Can sound vague in traditional industries

Director

In the UK, if you run a limited company, you are legally a Director of that company. Many business owners choose to use this title as it is widely recognised. But be aware that the title of director should only be used when dealing with a company – you can not be a director of a non limited company

When to Use It

• • If your business is a limited company
  • When dealing with suppliers, banks, or official documents
  • If you want a professional title that carries authority

Pros and Cons

Pros:

• • Recognised in legal and corporate settings
  • Works well in formal industries

Cons:

• • Can sound too corporate for some small businesses
  • Doesn’t specify what area of the business you handle

Managing Director (MD)

A step up from Director, “Managing Director” suggests that you not only own the company but also oversee its day-to-day operations.

When to Use It

• • If your business has multiple Directors and you are the main decision-maker
  • When dealing with high-level clients, investors, or banks
  • If your business has grown and has several employees

Pros and Cons

Pros:

• • Sounds authoritative and professional
  • Recognised internationally in business settings

Cons:

• • Can seem too formal for small or family-run businesses
  • Might not suit sole traders or very small businesses

CEO (Chief Executive Officer)

“CEO” is typically used in larger companies, but some small business owners choose this title, especially if they have ambitious growth plans.

When to Use It

• • If you want to position your business as a growing enterprise
  • If your company has multiple employees and a leadership team
  • When dealing with international or corporate clients

Pros and Cons

Pros:

• • Commands respect and authority
  • Works well for business growth and scaling

Cons:

• • Can feel over the top for a very small business
  • Not always appropriate if you’re the only employee

Proprietor

“Proprietor” is an old-fashioned title that is still used in certain businesses, particularly local shops, cafes, and sole trader ventures.

When to Use It

• • If you run a traditional business like a shop, café, or trade service
  • When you want to create a personal, hands-on image
  • If you are a sole trader and want a title with some formality

Pros and Cons

Pros:

• • Feels personal and approachable
  • Suits local and traditional businesses

Cons:

• • Can seem outdated in some industries
  • Not widely recognised in corporate settings

Partner

If your business is a partnership, then “Partner” is a natural choice. It makes it clear that you share ownership and responsibility with others.

When to Use It

• • If you co-own the business with one or more people
  • If your business is structured as a partnership
  • When you want to highlight collaboration in your business

Pros and Cons

Pros:

• • Clearly indicates shared ownership
  • Works well in professional services like law and accounting

Cons:

• • Doesn’t clarify your specific role
  • Might not be suitable for businesses outside of professional services

How to Choose the Right Job Title

With so many options, how do you decide? Here are some key factors to consider:

1. Business Structure

If you are a sole trader, “Owner” or “Proprietor” might be best. If you run a limited company, “Director” or “Managing Director” could be more appropriate.

2. Industry Norms

Different industries have different expectations. “Founder” works well in tech startups, while “Proprietor” suits a high-street shop. Look at what others in your industry are using.

3. Audience Perception

Think about how your customers and clients will perceive the title. If you deal with corporate clients, “Managing Director” or “CEO” may carry more weight than “Owner.”

4. Growth Plans

If you plan to expand your business, choose a title that will still make sense as your company grows. “CEO” or “Managing Director” may be better long-term options than “Owner.”

5. Personal Preference

At the end of the day, the right title is the one that you feel comfortable using. If a title feels too formal or too casual for you, go with something else.

Conclusion

There is no single “correct” job title when running a small business—it all depends on your business structure, industry, audience, and personal preferences. Whether you choose “Owner,” “Founder,” “Director,” or “Managing Director,” the most important thing is that your title accurately reflects your role and helps you communicate effectively with customers, suppliers, and stakeholders.

Take some time to consider what fits best for your business, and don’t be afraid to change it as your company evolves.