Gerry Brockman has a masters in finance and has worked everywhere from main-street to wall-street. In this episode, Gerry helps us think through some of our biggest business decisions. There are 4 very important text-book components about evaluating risk and value, which every business owner should have in the back of their mind. Gerry shares some examples that speak to how you can apply these concepts in a real life scenario and help save your business a painful financial headache.
Key Takeaways:
[3:35] How to think about opportunity costs.
[5:15] What are the 4 levels of value creation? Gerry shares simple text-book definitions.
[7:55] How can small businesses evaluate risk?
[9:00] Let's talk about the risk/reward concept.
[12:25] How do you apply these text-book concepts in real-life?
[18:15] Gerry shares an example of how to apply these 4 principles in a real life scenario.
[28:15] The 4 levels of value creation take a lot of the guess work out of important risk/reward situations.
[30:25] Why Gary believes making decisions from the gut is a bad idea.
[31:10] Use these 4 levels as a framework and work from there.
Mentioned in This Episode: