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.

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