50 Steps to Business Success: Entrepreneurial Leadership in by Peter M. Cleveland

By Peter M. Cleveland

Here's a grasp plan for leaders who need to know the dynamic, confirmed recommendations any enterprise leader-from the fruit stand proprietor to the Fortune 500 chairman-must use to construct a profitable entrepreneurial firm

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During 1989 planning, they met with their accountant to determine how to improve performance. 1. For each goal, specific action plans were devised and responsibilities assigned to each shareholder. Much to their delight, sales increased to $825,000, all at normal gross margins. Even though the $900,000 sales target had not been met, above-average sales growth had been sustained without giving away margins. Shareholder incomes grew from $19,000 to $27,000 that year. Pot Kiln's 1989 objectives were broken into a series of smaller ones, providing a trail for each shareholder to follow.

Both men's arguments persuaded Bob to refine his objective. 1. Bob was surprised when the actions required to grow to $45 million in sales numbered more than nine. The steps included a very detailed, well-programmed media campaign to increase LSM name recognition, incentive programs to push each salesperson to surpass the threshold of 30 car sales per month, and careful site selection for each new location. When the meetings were complete, Bob was encouraged by the trail of events to success. 1.

Was Pot Kiln Ltd. a success or failure? After all, sales did increase by 25 percent and shareholders' income climbed by almost 12 percent. Admirable progress, unless your goal is to double your income from $17,000 to $34,000. Then, it seems like a failure. It wasn't enough to have a company objective to increase sales by 50 percent. The magnitude of Beth's personal objective demanded a detailed trail of smaller company goals to be developed and implemented. Working harder at traditional sales plans failed to produce the desired results.

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