The NEW ROI: Return on Individuals with Valuation Expert Dave Bookbinder

MYOB Podcast

MYOB: S1, E3: Mind Your Own Business Podcast, Episode 3 with Business Valuation Expert and Author Dave Bookbinder and Career Strategy Expert and Host Elizabeth Upton

Description:

If you want to figure out what your business, your intellectual property, or your intangible assets are worth, Dave Bookbinder is your guy. Join us as we see how Shark Tank made the word “valuation” sexy. Hear important advice for early business owners. Understand why employees are considered intangible assets. Discover why trust and mood are just as important as high performance and come to understand your valuation needs. Our conversation is at the intersection of Finance, Accounting, and Human Resources. Welcome to the show!

Highlights:

• See how Shark Tank made the word “valuation” sexy
• Advice for early business owners
• Learn about why employees are considered intangible assets
• Discover why trust and mood are just as important as high performance
• Learn how to understand your valuation needs

Show Notes: S1, E3:

00:00 - Intro

02:25 - Shark Tank made the word “valuation” sexy

Definition of valuation : To figure out what your business is worth or your intellectual property or your intangible assets (human capital) are worth

02:34 The distinction of people as intangible assets

03:05 Employee engagement

03:30 People really are an organization’s most valuable asset

05:12 Why is it that human capital and employee engagement have not been considered a return on investment?

05:31 What some CEOs are really thinking. Is there a shift happening?

06:05 Working from home

11:25 Gallop publishes employee engagement surveys - every year it is roughly 30-33% - if people are engaged that is what drives business innovation, discretionary effort, and ultimately in my unique lens drives business valuation.

Analogy : Think of your business as a lifeboat - 10 people in the boat - 3 in front rowing to safety - 4 in middle looking at icebergs - 3 in back trying to sink you.

12:11 *Study on how the FBI hires people* High performance individuals - trust and mood - *this article describes that trust and mood are just as important as high performance*

13:30 Among CEOs there has been an important theme with hiring people that are aligned with your mission.

16:25 How one company gave their employees a folded booklet of their guided principles so that the team is accountable.

18:25 *Start with Why: People don’t buy what you do, they buy why you do it” - Simon Sinek How great leaders inspire action book

21:36 At what point in business do you need to understand your valuation needs?

21:57 Unfortunately, business owners rely on two valuation methods:

• Back of the napkin method
• Back of the envelope method
• Neither one is a legitimate valuation method.

25:48 Advice for early business owners: Hire where you are lacking, don’t go it alone try and find others who can help you and will support you.

25:50 An overview of valuation methodologies:

• Market based approach
• Income based approach

Valuation is about the future not necessarily as much about the past - projecting the future benefit stream and bringing it back to today’s dollars in an appropriate rate of return and risk rate.

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Resources:

• • 9.17 Tribal Leadership by Dave Logan and John King: Discusses energy of individuals and how it contributes to the energy as a whole. How one employee that is not engaged can bring down the morale of the entire team and the culture in general.

• 18.00 Start with why: How great leaders inspire action by Simon Sinek

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Quotes:

• “Every CEO on the planet has pounded the table and said ‘our people are this company's most valuable asset’... and what they really think is: ‘our people are this company's largest expense and how do we reduce that’.” - Dave Bookbinder
• “Mood is contagious.” - Dave Bookbinder
• “People don’t buy what you do they buy why you do it.” - Simon Simek
• “I think people want to be a part of something bigger.” - Dave Bookbinder

Contact Info:

Guest: Dave Bookbinder (LinkedIn, Facebook, & Twitter)

www.newroi.com

Behind the Numbers Podcast

LinkedIn Group: The NEW ROI: Return On Individuals - At the intersection of Finance, Accounting, and Human Resources

Host: Elizabeth Upton (Instagram, Facebook, & LinkedIn)

www.elizabethupton.com

@myobpodcast

@elizabethuptoncoaching

https://linktr.ee/MYOBsocial

Email us to be a guest on the show: [e-mail]

Discuss your business strategy 1:1 with Elizabeth: https://calendly.com/elizabethupton/strategy-call

PA/Admin Support: Yasmin Senouci (IG)

@yasminsenouci

Original music by Adrian Vaca (Instagram & Facebook)

www.adrianvaca.com

IG: @adrianvaca

Duration : 36 minutes

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