Calculating the ROI of Your Business

In episode 297 of Financially Simple, Justin goes over the basics of calculating the Return on Investment of your Business.

As we continue to look at ways of narrowing the Wealth Gap, it’s important to consider the Return on Investment that our Business provides and how it impacts the value of the Business. In this episode, Justin looks at ROI, why it’s important to know, ways to calculate it, and the intangible aspects of a business’s value.

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TIME INDEX:

01:33 - Calculating the ROI of Your Business

02:33 - The Basics of ROI

04:52 - The Simplest Method

06:18 - Case Example

10:31 - Intangible Qualities

13:47 - Goodwill

14:50 - Valuing Goodwill

17:30 - Another Approach

19:43 - Why Do All This?

23:57 - Summary

 

RESOURCES:

Financially Simple Educational Website

Financially Simple on YouTube

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NEW Book: The Ultimate Sale - A Financially Simple Guide to Selling Your Business for Maximum Profit

Jim Strauder, How to Value Goodwill When Selling a Business

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BIO:

Justin A. Goodbread, CFP®, CEPA, CVGA, is a nationally recognized financial planner, business educator, wealth manager, author, speaker, and entrepreneur. He has 20+ years of experience teaching small business owners how to start, buy, grow, and sell businesses. He is a multi-year recipient of the Investopedia Top 100 Advisor and 2018 Exit Planning Institute’s Exit Planner Leader of the Year.

DISCLOSURES:
This podcast is distributed for informational purposes only. Statements made in the podcast are not to be construed as personalized investment or financial planning advice, may not be suitable for everyone, and should not be considered a solicitation to engage in any particular investment or planning strategy. Listeners should conduct their own review and exercise judgment or consult with their own professional financial advisor to see how the information contained in this podcast may apply to their own individual circumstances. All investing involves the risk of loss, including the possible loss of principal. Past performance does not guarantee future results and nothing in this podcast should be construed as a guarantee of any specific outcome or profit. All market indices discussed are unmanaged, do not incur management fees, costs and expenses, and cannot be invested into directly. Investment advisory services offered by WealthSource Partners, LLC. Neither WealthSource Partners, LLC nor its representatives provide legal or accounting advice. The content of this podcast represents the views and opinions of Justin Goodbread and/or the podcast’s guests and do not necessarily represent the views and/or opinions of WealthSource Partners, LLC. Statements made in this podcast are subject to change without notice. Neither WealthSource Partners, LLC nor its representatives, the podcast’s hosts, or its guests have an obligation to provide revised statements in the event of changed circumstances.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the CFP® certification mark, the CERTIFIED FINANCIAL PLANNER™ certification mark, and the CFP® certification mark (with plaque design) logo in the United States, which it authorizes the use of by individuals who successful