December 12, 2018

$10,000,000 Market Cap per Employee?

That's what is mentioned in this transcript of a podcast (click here).

How many employees do you have and what is your market cap? Then do the math.

Think of the contrast this way.

  • Google = $10,000,000 market capitalization per employee.
  • Nordstrom = $125,000 market capitalization per employee.
The transformation of the past decade has been breathtaking. Successful companies have figured out how to make money without people or without marketing or without fixed costs.
  • High sales per employee.
  • Low ad-to-sales ratio.
  • Minimal fixed costs.
  • You either generate revenue from data or you pay for data.
Evaluate yourself on each bullet point above. How does you company stack up?

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