This summer I did a formal training for my homies, the Setpoint management team. Since I’m a significant owner of Setpoint and still serve as the CFO, we at the Business Literary Institute decided it was time to do some financial training for the company where it all started. Over the last few years Setpoint has grown and there are many new managers that have not had my training.
For those of you who don’t know who or what Setpoint is let me explain. I have owned Setpoint for over 20 years and it is at Setpoint where I started training finance. My partners and I at Setpoint decided we wanted to open the books and as we reviewed our financials weekly I would teach some key finance concepts to our employees. Most of the material that I use at BLI came from those early training sessions. My training material I used at Setpoint was also the basis for my best-selling book Financial Intelligence.
Setpoint is a manufacturing company that designs and builds automation equipment used in manufacturing. Setpoint is also involved in building amusement park rides. We have presence in the automotive industry, ammunition industry, and amusement park industry to name a few.
The deal we made with our sister company is that as I did the training in 4 two-hour trainings BLI earned a lunch for our staff at the best restaurant in Utah – Tona’s. We at BLI all love sushi so this training was a win/win for all involved.
The training went great. The group was very attentive and interested in the topic. One thing I have learned over the years is that businesses that share numbers tend to have employees that really want to learn finance. Setpoint certainly fit that model. One key topic for Setpoint was the return on investment module. For this business ROI tools are key to selling our product. Capital equipment for manufacturing or amusement park rides are capital investments that are long-term investment that should benefit the business for years to come. Consequently, the way Setpoint has to sell its products is by using ROI tools such as payback, NPV, and IRR. Understanding how these models work is critical to the Setpoint team.
The group was very involved in the training and very on top of the numbers. We have a lot of engineers at Setpoint and they do well with the number crunching part of finance training. We had some great discussions around the ROI module and the cash flow module. By the way I recently published, through Harvard business review press, toolkit for Return on Investment (ROI).
So the training was a win-win for BLI and Setpoint. BLI got great food and Setpoint great training.