By Peter M. Cleveland
Here's a grasp plan for leaders who need to know the dynamic, confirmed options any company leader-from the fruit stand proprietor to the Fortune 500 chairman-must use to construct a profitable entrepreneurial company
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Extra info for 50 Steps to Business Success: Entrepreneurial Leadership in Manageable Bites
Leaders with risk scores higher than 10 are many times more likely to lose because they gamble. A couple of examples will illustrate both ends of the scale. First, let's look at Aquabar Inc. and its conservative principal John Lavender. John started commercial welding in 1967 with $50,000 capital, a $100,000 loan from his brother, and a bank line of credit for a similar 14 Peter M. Cleveland amount. Four entrepreneurs earned a living during the first five years. Sales grew from zero at the start to $837,000 in year five, when John hired more welders to meet growth demands.
Over seven years, stand expenses had increased and exceeded the $110 charged to the drivers. Earl's accountant advised him to increase fees to $150 per week. Earl was worried that his accountant's advice would result in drivers refusing to work, and discussed the matter with Art Risling, a fellow member of a local investment club and small businessman. Art probed for details about his operations and discovered expenses had increased 20 percent during the past three years, while the number of fares per driver per day declined — leaving him with $110 per week per driver.
While many factors influence success, personal make-up is often the least understood. Leaders may have the best education, yet lack courage to lead. Others with 20 years of leadership experience have egos that prevent them from learning new techniques. Moods affect our ability to lead as well. When we react poorly to others, we lead poorly. When our spirits are high, leadership skills are usually at their peak. Knowing your style is more important than your style itself. Awareness of personal strengths and weaknesses are prerequisites to understanding your limitations to lead a business.
50 Steps to Business Success: Entrepreneurial Leadership in Manageable Bites by Peter M. Cleveland