Podcast Summary: The Entrepreneur DNA – "Scaling Smart: The RISE Framework Every Entrepreneur Needs | Gary Harper | EP 59"
Introduction
In Episode 59 of The Entrepreneur DNA, host Justin Colby welcomes Gary Harper, a bestselling author and renowned business coach, to discuss the RISE Framework—a comprehensive business operating system designed to help entrepreneurs scale their businesses intelligently. Released on February 17, 2025, this episode delves deep into the intricacies of sustainable business growth, emphasizing the importance of real profit margins, effective leadership, and purposeful scaling.
1. Understanding the RISE Framework
Overview: Gary Harper introduces the RISE Framework, a structured approach comprising four quadrants—Resources, Inspiration, Systems, and Expansion—that guide entrepreneurs from the inception to the scaling of their businesses.
Key Points:
- Four Quadrants: Each quadrant serves as a bridge between different stages of business growth.
- Customization: Suitable for any industry or vertical, allowing entrepreneurs to start wherever their business currently stands.
- Purpose-Driven Success: Focuses not only on business metrics but also on personal growth and fulfillment.
Notable Quote:
“RISE is not a what to do, it's how to do it. We became very implementing, you know, structure for Rise versus just, you know, information. It's not an information program. It's an implementation program.”
— Gary Harper [16:37]
2. Resources: Building the Foundation
Importance of Budgeting and Real Profits: Gary emphasizes the necessity for entrepreneurs to budget for every role they occupy within their business. By assigning financial value to each position, entrepreneurs can distinguish between gross revenue and true profit margins.
Key Insights:
- False vs. Real Profits: Entrepreneurs often mistake revenue for profit, leading to misguided scaling decisions.
- Seating in the Business: Assigning salaries or commissions to each role provides a clearer picture of actual profitability.
- Sustainable Scaling: Understanding real profits helps determine whether scaling is financially viable.
Notable Quotes:
“If you're sitting in sales, pay yourself commission. If you're sitting in operations, pay yourself the salary... it was false profit in a company.”
— Gary Harper [00:00]
“You grew wrong because they go to expansion too, too fast. They start making all that money and they don't build the business properly with a framework that protects this longevity of it and security for you, your family and your business for a long period of time.”
— Justin Colby [08:49]
3. Inspiration: Cultivating Purpose and Leadership
Discovering and Aligning Purpose: In the Inspiration quadrant, Gary discusses the significance of uncovering both personal and organizational purpose. This alignment fosters a motivated and committed team, reducing turnover and enhancing productivity.
Leadership vs. Management: Gary differentiates between being a leader and being a manager. While managers handle tasks and ensure operations run smoothly, leaders inspire and drive their teams toward a shared vision.
Key Insights:
- Emotional Paychecks: Beyond financial compensation, employees seek emotional fulfillment and alignment with the company's vision.
- Leadership Development: Effective leadership requires continuous learning and self-improvement.
- Core Values: Establishing and adhering to core values ensures that team members resonate with the company's mission.
Notable Quotes:
“You could be a great manager and a terrible leader. Right? And you could be a great leader and a terrible manager.”
— Gary Harper [20:39]
“Companies like mama, and if mama ain't happy, ain't nobody happy, right?”
— Gary Harper [10:50]
4. Systems: Streamlining Operations
Processes vs. Procedures: Gary clarifies the distinction between processes (what needs to be done) and procedures (how tasks are executed). Efficient systems eliminate waste and enhance productivity.
Eliminating Waste: Drawing from his Six Sigma background, Gary highlights the importance of identifying and removing inefficiencies to ensure smooth scaling.
Key Insights:
- Core Processes: Focus on essential and value-adding activities that contribute directly to the business's success.
- Nine Box Evaluation: Assessing employee performance and potential ensures the right people are in the right roles.
- Variance Reporting: Regularly comparing budgeted figures against actual performance helps maintain financial health.
Notable Quotes:
“We have to have both leaders inspire and managers get results.”
— Gary Harper [21:05]
“Any process that we have that is essential to our company and brings value either to our internal or our external customer, that is what we call a core process.”
— Gary Harper [30:00]
5. Expansion: Scaling with Integrity
Earning the Right to Scale: Gary stresses that businesses must meet certain criteria in the RISE Framework before pursuing expansion. This ensures that scaling efforts are sustainable and do not compromise profit margins.
Case Study: Crumble Cookie: Gary cites Crumble Cookie as an exemplary model of intelligent scaling. Starting in 2017, the company expanded to over 950 locations globally within eight years by adhering to the RISE principles.
Key Insights:
- Balanced Growth: Rapid expansion without the proper foundation leads to inefficiencies and diminished profits.
- Protecting Profit Margins: Maintaining healthy profit margins is crucial, especially in service-based businesses where margins are typically slimmer.
- Selective Hiring: Strategic hiring aligned with the business's financial capabilities prevents operational bloat.
Notable Quotes:
“They dialed in the resources, they inspired the resources, they built systems to allow them to let go without losing control.”
— Gary Harper [31:59]
“You can grow as fast as you want to grow as long as you do it the right way.”
— Gary Harper [33:16]
6. The Role of Passion and Purpose
Gary’s Personal Journey: Gary shares his transformative experience battling Lyme disease, which forced him to reevaluate his career and discover his true purpose. This personal story underscores the importance of aligning one's business with their intrinsic motivations.
Passion as an Offspring of Purpose: Passion arises from a clear sense of purpose. When entrepreneurs connect their business endeavors to their personal purpose, they cultivate sustained motivation and resilience.
Key Insights:
- Purpose Discovery: Reflecting on past experiences, current gifts, and desired legacy helps in formulating a meaningful purpose statement.
- Mortality Motivation: Life-altering events can ignite a profound drive to pursue one's true calling.
- Aligning Business with Purpose: Ensures that business growth is not just financially driven but also fulfilling on a personal level.
Notable Quotes:
“Purpose comes from three areas. It comes from the past, the present, and the future.”
— Gary Harper [35:36]
“You can pull from the past and what your experiences are to give you a passion, figure out what you love to do.”
— Gary Harper [35:36]
7. Conclusion and Call to Action
Final Thoughts: Gary emphasizes that the RISE Framework is essential for creating a healthy, profitable, and scalable business. By meticulously managing resources, inspiring teams, streamlining systems, and scaling judiciously, entrepreneurs can achieve long-term success without compromising their profit margins or personal fulfillment.
Call to Action: Listeners are encouraged to purchase Gary Harper's bestselling book, RISE, available on Amazon and Audible. Additionally, entrepreneurs can explore RISE workshops tailored for smaller businesses aiming to solidify their foundations before scaling.
Notable Quotes:
“If you're sitting in sales, pay yourself commission... it was false profit in a company.”
— Gary Harper [00:00]
“If you're listening to this, rewind that one part.”
— Justin Colby [11:49]
“Everyone starts with the E first, right? … We want to push them back to starting with time, money and people, which is resources.”
— Gary Harper [14:53]
Resources Mentioned:
- Gary Harper’s Book: RISE – Available on Amazon and Audible
- Gary Harper’s Website: SharperBusiness.com
Closing Remarks: Justin Colby wraps up the episode by reiterating the value of the RISE Framework and encouraging listeners to implement its principles to achieve their entrepreneurial dreams. He highlights the importance of aligning business operations with personal purpose and maintaining healthy profit margins as key takeaways for sustainable growth.
Final Thoughts
This episode offers a treasure trove of insights for entrepreneurs seeking to scale their businesses thoughtfully and sustainably. Gary Harper's RISE Framework provides a structured roadmap that balances financial acumen with personal fulfillment, ensuring that growth does not come at the expense of profitability or personal well-being. Whether you're a seasoned entrepreneur or just starting, the principles discussed in this episode are invaluable for building a resilient and thriving business.