“Now, what if we were able to lower the unit COGS on our raspberry cupcakes some, but not enoughto get them to 70 percent of retail price. Let’s say that after negotiating with a new raspberry supplier, we shave $0.15 of direct costs off each of our cupcakes, bringing our COGS from $2.10 down to $1.95. Now we still need to raise our prices to reach a 30 percent gross margin, but we won’t have to raise them as much. Using the COGS method, if we mark up $1.95 by 45 percent (1.95 times 1.45), we get a unit price of $2.83 (rounding up). Using the net revenue method—setting our unit cost of $1.95 as 70 percent of the retail price—we end up charging $2.79 per unit. With our new unit cost, we can sell the raspberry cupcake at between $2.79 and $2.82 apiece and make an adequate gross margin, that is, stay in business.” (page 49)
“Many former entrepreneurs mistakenly fear that prospective employers will view them as (1) unwilling or unable to report to others and (2) failures. The first of these fears is groundless and the second is impossible. First, former entrepreneurs have been where the buck stops. They understand—perhaps more clearly than other employees—the need to quickly pitch in and get something done without endless debate. Second, while a business can be a failure, a person cannot be a failure. People don’t turn into goats after a business fails. They’re still successes as people.” (page 9)
Lead With Humility: 12 Leadership Lessons from Pope Francis by Jeffrey A. Krames
“The quest for inclusion has been one of the most important factors in making Pope Francis so popular. Inclusion was at the heart of the majority of his key decisions during his first year as head of the Church. While he dismisses the depiction of himself as a ‘superhero’ pontiff, there is no arguing how he has affected the 1.2 billion Catholics he leads (not to mention millions of others who have come to admire him). He may be no superhero but he is the only pope in history to canonize two popes in a single day—Pope John XXIII and Pope John Paul II— in late April 2014. Papal pundits lauded the act because the two popes were seen as a ‘balance’—representing both the left and the right of the Church.” (page 41)
“We’ll assume that, as part of the Proactive Sale Strategy, your investment banker has completed a list of potential buyers. He or she created that list with your input and from a number of sources, including trade association membership lists, data and analysis, media and Internet searches, and you hope, extensive networking in your industry and others. That list likely includes both public and private companies, such as private equity groups, industry players, adjacencies (companies in industries adjacent to yours) and competitors.” (page 156)
A World Gone Social: How Companies Must Adapt to Survive by Mark Babbitt and Ted Coiné
“These are just a few ways professionals of all descriptions are building their brands—and thus their careers as leaders— on social media. Really, the sky’s the limit, and, as we’ll discuss in the final chapter of this book, we don’t even know what’s next—only that we need to be firmly in the mix, or we’ll be left behind. it’s absolutely stunning to us that more executives aren’t social. But then again, one way or another (by holdouts getting with the program or being replaced with hipper, more socially savvy successors over the next couple of years), this certainly won’t be the case for long.” (page 134)
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