Why 90% of Businesses Stay Small (and how to change that)

In this episode, James Sinclair and Bob Harper explore the E + M = S philosophy, which posits that Entrepreneurship plus Management equals Success. They explain that for businesses aiming for long-term growth, it’s crucial to separate the roles of the entrepreneur, who should focus on growing the business, and the manager, who should handle day-to-day operations. This separation allows each to excel in their areas of responsibility.

Bob Harper, sharing insights from his experience as a qualified accountant and business coach, highlights the common misconception that small businesses, especially startups, cannot afford to employ managers. He argues that this mindset can hinder growth since having a dedicated manager is vital for scaling operations.

The discussion includes practical strategies for implementing the E + M philosophy. For instance, they suggest setting clear, long-term goals and reverse engineering them to create actionable plans for each year, quarter, and month. They stress the importance of accountability and regular performance monitoring to ensure that both entrepreneurs and managers are on track toward their goals.

Another key aspect discussed is the nature of entrepreneurs and managers. Entrepreneurs are characterized as visionaries focused on growth and innovation, while managers concentrate on operational efficiency and achieving short-term objectives. Sinclair and Harper also discuss the need for ongoing learning and adapting business strategies to overcome potential constraints, such as talent shortages or capital limitations.

The episode wraps up with a call to action for business owners to clarify their long-term vision and be open to changing their mindset to foster successful growth through effective management.