Summary:

In this episode of #70secondCEO, Carl Gould shares insights from a decades-long study showing a major shift in what drives business value. Back in 1974, 95% of value came from tangible assets. Today, it’s the opposite—72% of value now comes from intangibles like brand equity, intellectual property, and mission. Carl highlights how companies like TOMS thrive not just on product quality but on brand promise and purpose. The takeaway? Don’t just polish your product—build a brand people believe in. That’s what makes your business truly valuable.

Read the full transcript:

Hi Everyone, Carl Gould here your #70secondCEO, just over a minute of investment per day for a lifetime of results.

There was a study done in 1974 by the Sloan school of business and they said, “What drives value in a business? And 95% of what drove value 40 and 50 years ago, was the TANGIBLES of the business, its physical assets. Well let's fast forward to today. A follow up on those 10,000 companies and the second part of the study showed that 72% of what drives value in business is its INTANGIBLES. Its intellectual property, its brand equity, its brand promise. Toms shoes- is it the shoes? Or is it the fact that that company goes out and for every pair of shoe you buy, they buy a second pair and they give it to an underprivileged child somewhere else in the world. Which one do you think it is? So stop falling in love with your product or service. Yes, you want your product to be impeccable. You want your service delivery to be outstanding. No question about it. Logistically, we want those things to run well. Understand though, people will pay more, they will pay more for the other aspects of working with you.

Like and follow this podcast so you can learn more, my name is Carl Gould and this has been your #70secondCEO.