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Financially Simple Bizcast

The Financially Simple podcast is your one-stop resource for small business owners. Gain unique insights into growing, refining, and selling businesses. You will hear ways business owners have reduced their tax liabilities, increased their income, improved office morale, saved for the retirement of their dreams, and more.
Host Justin Goodbread is a serial entrepreneur, award-winning CFP® (Certified Financial Planning professional), CEPA® (Certified Exit Planning Advisor), and CVGA® (Certified Value Growth Advisor) with years of experience guiding business owners from start to exit in their business.

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 “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



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Neither Financially Simple, LLC nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances. Justin Goodbread, CEO of Heritage Investors, LLC, a Registered Investment Advisor, is an Investment Advisor Representative who offers advisory services through Heritage Investors. The information contained within the podcast is for informational purposes only and not considered investment advice. Seek help from a competent Financial Advisor.