Law eight: The law of the three hats.
Carl Bates writes in his book The Laws of Extreme Business Success about the 12 laws of business success. This law looks at the three roles that are required to manage any business and how these roles need to be separated away from the traditional single business owner. This law just seems the impossible one to get right for most people. At first it seems to be a sacrifice to give ‘power’ away, but once done it brings huge relief and growth to the business. The law states:
Extreme business success can only occur when the three hats of business are kept separate and distinct. When one person owns all the company’s shares, in the sole director and/or manager primarily responsible for the day-to-day running of the business, and the only other shareholder or director are their spouse, or a business partner also wearing all three hats, an enterprise can never become sustainable.
This book and others from Carl Bates are available here