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  • About Us
    • Nick Setchell – RealTime CEO
    • Vistage & TEC WorkshopsNick Setchell has been working with Vistage, the world’s largest CEO organization, since 2001.
    • NewsSee what’s happening with RealTime CEO.
    • Economic Update Report
    • Contact UsReach out to us. If you’re interested in booking Nick to give a keynote address or workshop at your conference, please include the date and location.
  • Concepts
    • Fiscal Focus Financial Statement AnalysisUnlock the hidden numbers in your P&L and balance sheet to see how you’re performing in 11 vital metrics.
    • Should We? / Can We?View, in real time, the actual financial impact of the hundreds of business decisions your team makes every month.
    • 24 Month Rolling ForecastingBlend your trailing twelve months with a rolling 12-month forecast to get a complete financial picture of your business.
    • J Curve ManagementTrack the number of investments you’re undertaking, the 3 phases of each, and the 5 rules for managing them.
    • Return on Operations – ROOView your return on operations percentage — your ROO % — the most powerful number to measure business success.
    • CEO Performance AnalysisBenchmark your performance as a private-company CEO against others in your industry.
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RealTime CEO Blog


How much is invested in your business?

Date: 30 April 2017
Category: Uncategorized, ROO - Return on Operations
Tags: Operational Investment

A common question that can cause unnecessary confusion for business owners is “How much is invested in your business?”.  The same business owner can typically tell me approximately what their house is worth or how much they have invested in their share portfolio but they struggle to confirm how much is invested in their business.  This is a problem, because it is very difficult to understand how much return you are generating if you don’t know how much is invested.   So why is this so difficult?  The answer lies in the traditional balance sheet which is not presented in a way that is easy to interpret and certainly does not readily tell us how much is invested in the business.

Have a look at this short screen cast for some insight to how the executives of DuPont addressed this issue over 90 years ago.  Their insights have become common practice in public companies around the world but are still not understood by most private companies.

https://realtimeceo.com/wp-content/uploads/Operational-Investment.mp4
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