Tropical MBA: Entrepreneurship & Founder Lifestyle

#846 Can Your Business Beat the S&P 500?

Feb 19, 2026
They debate when to spend to grow, including hiring part-time financial pros to map every dollar. AI for finance gets a deep look, from prompts to agentic tools automating CRM, SEO, content repurposing, and web design. Practical frameworks for choosing where to live and work in 2026 are offered. A side idea: recovering forgotten 401(k)s as a business opportunity.
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ADVICE

Make Finance Strategic, Not Just Bookkeeping

  • Hire part-time qualified finance pros to map where every dollar goes and run monthly business reviews.
  • Use those reports to create strategic dashboards and put key metrics in front of the team.
INSIGHT

Benchmark Your Business Against The Market

  • Benchmark your business returns against alternative investments like the S&P 500 to see if it's a good use of your time and capital.
  • Estimate 90-day (fire sale) and 360-day (M&A) values to understand realistic exit and net worth scenarios.
ADVICE

Use Labor Efficiency Ratio As A North Star

  • Calculate and track labor efficiency ratio (LER) to justify headcount and product allocation.
  • Use LER benchmarks (around 2.0) to find creative levers for improving profitability.
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