Interview Questions for Small Business Owners

Most lists of interview questions for small business owners stop at the questions. But a good interview starts well before you sit down with a candidate.

In this small business guide, I’ll walk you through how I’d prepare, the questions I’d ask (and the ones I’d avoid), and what to do once the interview’s over to ensure you land a quality candidate.

How to Prepare for an Interview

Be Clear on Who You Need to Hire

Before you write a single question, make sure you know who you’re hiring and what you need from them. When I sit down with small business owners for a consultation and ask who they’re looking for, a lot of them say something like, “Well, it could be this person, or it could be that person, and they could do this and they could do that.” If you aren’t clear on who you need, it shows in the interview. Your questions end up vague, it’s hard for the candidate to know what you’re after, and it’s hard for you to make an informed decision.
Your questions should line up directly with what you need from the person in the role. Asking generic, random questions won’t tell you whether someone can actually do the job.

Review Each Candidate Before the Interview

Go through each candidate’s resume before the interview and look at how their skills and experience match the role. This is where AI can save you a lot of time. You can use it to put together in-depth questions tailored to each candidate’s background, so you go into every interview with real insight into the person in front of you.

Use Core Questions and Personalised Questions

I’d split your questions into two parts. The first part is your personalised questions, the ones about how each candidate’s specific skills and experience relate to what you need.
The second is a set of core questions you ask every candidate in the same way. Around five or six is plenty. Because everyone answers the same questions, you can compare their answers like for like, which gives you a clear and fair comparison.  You get consistency from the core questions and depth from the personalised ones.

Set the Scene

An interview isn’t just you asking questions. The candidate is interviewing you too, and if they’re a good candidate, it has to work both ways. So put your best foot forward. Pick a calm, quiet space where people aren’t walking past all the time, turn your phone off and give the candidate your full attention. If you’re distracted, they’ll be distracted too, and you won’t see them at their best.

Good Interview Questions vs Bad Interview Questions

The biggest difference between good and bad interview questions is whether they ask for a real example. Questions like “Tell me about a time you…” or “How did you handle…” are behavioural questions. They make the candidate talk about something they’ve actually done, how they did it and what the result was.
A yes/no question, or one that asks for an opinion, doesn’t tell you much. Ask someone whether they think KPIs are important and they’ll say yes. Ask them about a KPI they’ve had and how they achieved it, and you’ll find out whether they can actually deliver.
Behavioural questions also matter more now that AI makes it so easy to generate answers. A candidate can’t just paste a behavioural question into AI and read out the response. They have to give an actual example of what they’ve done and explain the results.

Good Interview Questions and Answers for Small Business Owners

I always start with a few light personal questions to break the ice. It helps the candidate feel comfortable and takes away some of the nerves. From there, I move into the personalised questions about their background, then finish with the core questions I ask every candidate.
Here are the questions I’d choose from for your core set. Pick five or six that suit the role you’re hiring for.

1. What made you want to apply for this role and our business?

This is one of my favourites. It shows whether they’ve done any research, and if they have, how well they align with your values and culture. Usually they’ll also tell you why they’re thinking about leaving their current role, and that always gives you good information.
What a good answer looks like: They can tell you something specific about your business that they found while researching you. It might be one of your values that they connect with, something that sets you apart from competitors, or a customer review they’ve read. Bonus points if they can link it back to their own experience or what they’re looking for in their next role.

2. Tell me about a time you worked in a small team and had to step outside your role to help out.

A small business is a very different environment from a large corporate, where everyone has set roles. In a small business you need to pivot, jump in wherever you’re needed and support the team, even if the task isn’t strictly part of your job. This question shows whether the candidate has done that before.
What a good answer looks like: They give a real example of being flexible and wearing lots of hats. They’re comfortable juggling different tasks and happy to support teammates when things get busy, without needing to be asked or feeling it’s “not their job”.

3. Tell me about a target or KPI you’ve had and how you achieved it.

This turns “Do you think KPIs are important?” into something you can actually assess. You want a real example of the target, what they did and what they achieved.
What a good answer looks like: A clear, measurable example. They can tell you what the target was, the specific steps they took to reach it and the result, ideally with numbers. Strong candidates will also mention what they learnt or would do differently next time,

4. Tell me about a time you solved a problem without having all the information you needed.

Small businesses need people who can use their initiative and keep moving without waiting for perfect instructions.
What a good answer looks like: They explain how they worked out what they did know, found answers where they could (asking a colleague, checking past records, doing some research) and then made a sensible decision rather than waiting. They kept the right people in the loop and checked back to make sure the outcome was right.

5. Tell me about a time you had several urgent tasks at once. How did you decide what to do first?

This shows how the candidate prioritises when everything feels urgent.
What a good answer looks like: They have a clear way of prioritising, such as deadlines or the impact on customers. They give examples of strong communication and letting people know if something had to wait in a timely manner.

6. Tell me about a time a customer complained. How did you handle it?

This tests their problem-solving and their customer service mindset.
What a good answer looks like: They listened, stayed calm, took ownership and followed up to make sure the customer was happy.

7. Tell me about a time you realised partway through a task that you’d made a mistake. What did you do?

This shows accountability and ownership.
What a good answer looks like: They owned it straight away, fixed it and made sure it wouldn’t happen again. You may need to be wary of anyone who blames others and doesn’t take accountability, as this can be key in a small team.

8. Tell me about a time you had to learn a new system or process quickly.

This shows how fast the candidate can pick things up.
What a good answer looks like: They took the initiative to learn, whether by asking questions, practising or making notes, and got up to speed quickly. Using examples of specific systems they have had to do this with is a great sign!

9. Tell me about a time you disagreed with a manager’s decision. How did you handle it?

This shows how they manage conflict and stay professional.
What a good answer looks like: They raised their concerns respectfully and privately. Once the decision was made, they got on board and supported it. They talk about it professionally and treat it as something they learnt from rather than a chance to complain about a past manager.

10. What did you enjoy most, and least, about your last role?

This shows what motivates the candidate and what their deal-breakers are. If what they disliked is a core part of your role, that’s a red flag.
What a good answer looks like: An honest, balanced answer. What they enjoyed matches your role, and what they didn’t enjoy isn’t a big part of it.

Bad Interview Questions for Small Business Owners

The questions to avoid are the ones that don’t give you anything to compare. Yes/no questions are the most common example, because almost every candidate gives the answer they think you want to hear. Generic questions with no link to the role aren’t much better. They fill time, but they won’t help you make an informed decision. Hypothetical “What would you do if…” questions are also easy to prepare with AI, so a real example from their past will tell you a lot more.

Add a Practical Task Where You Can

Depending on the role, it’s worth including something practical in your interview. We’ve just started doing a short role play in our sales interviews. For a trades role it’s even more obvious, because you can get the candidate in and see them work. A practical task shows you how someone actually does the job, not just how they talk about it.

What to Do After the Interview

Try to get back to candidates within the same week, or within a few days at the latest. Even if you haven’t made a decision yet, keep the conversation going so good candidates stay warm.
Remember that candidates are interviewing you too. Have all the details ready, including salary, hours, when they could start, when you’ll follow up and when they should expect to hear from you. That shows them you’re organised and you know what you’re doing. If you can’t answer those questions, a good candidate may decide you’ve got no clue what’s going on and look elsewhere.

Let Us Handle the Hard Part

Interviewing is only one part of hiring, and finding the right people to interview in the first place takes time most small business owners don’t have. If you’d rather spend that time running your business, book a call with one of our small business recruitment consultants. For a flat fee of $2,995 + GST, we’ll write your job ad, market your role across the major job boards, social media and our candidate database, then screen and shortlist every applicant. You’ll get a shortlist of suitable candidates ready for the interview, and you can use the questions above to make your final decision with confidence.