Jun 25, 2018
In this episode of Financially Simple's Growing Your Business series, Justin takes a look at the relationship between the cost of capital and risk.
There are various knock-on effects from investing in your own business, that might have unforeseen costs and affect the value of your business. Justin goes over the ins and outs of the cost of capital and risk, and how it varies for large vs small and public vs private businesses.
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00:33 - Understanding the Cost of Capital and Risk Relationship
03:36 - What Is the “Cost of Capital”?
06:39 - Questions to Ask
08:42 - Why Understanding the Cost of Capital Matters
10:01 - Example: Big Companies vs Small Business
12:59 - Size Matters
13:52 - Public vs Private Lending
18:06 - What Is Company-Specific Risk?
20:50 - Summary
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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The Exit Planning Institute's Leader of the Year is awarded to a nominee who is a CEPA credential holder who has made a significant impact or contribution to the exit planning profession or overall community through innovation and influence and is viewed by the Exit Planning Institute as a thought leader, risk-taker and specialist while showing characteristics of collaboration.
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