This week I talk with Gerry Brockman, who has worked with Wall Street M&A firms, a major airline a trucking company & even a tech startup. In each case his job was to help manage the Opportunity Cost of decisions with a big risk/reward factor.

Gerry will talk you through the steps you can follow to apply the same process to your business decisions. ​

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[bctt tweet=””You need to understand your rewards relative to what kinds of risks you’re taking.”” username=”dynasty_leader”]

What were the 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.

Below are the slides that Gerry talks through in our discussion of Opportunity Cost and Value Creation.

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