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janineaa
03-03-2014, 09:31 AM
What is the ideal ROI for a business to call it successful? Is this the most basic and best performance measure of a business?

I would love to know more about this. Thanks!

pahagwl
03-03-2014, 01:47 PM
Well, the classic definition for an acceptable return on investment is that it is the opportunity cost of the money invested, i.e., the rate of return which one could have gotten by investing it in a safe security, like in a bank or government treasury bills, and some additional rate as a premium for the risk which the entrepreneur takes when he starts the business. So, when deciding on an acceptable rate of return, you should keep these guidelines in mind.

crimsonghost747
03-04-2014, 03:26 AM
If we are talking about your own business, then it really depends on your own goals. For most people who own their own business, getting a decent income for themselves would be the goal so whether the business is succesfull or not would be decided by the earnings, not the ROI.

ROI is a decent way of measuring how the company is performing, but in the end it's hard to put down a ROI number that would mean you are succesfull. It all depends on your goals and what is needed to archieve them.

DomDom
03-04-2014, 04:07 PM
If we are talking about your own business, then it really depends on your own goals. For most people who own their own business, getting a decent income for themselves would be the goal so whether the business is succesfull or not would be decided by the earnings, not the ROI.

ROI is a decent way of measuring how the company is performing, but in the end it's hard to put down a ROI number that would mean you are succesfull. It all depends on your goals and what is needed to archieve them.

The only conclusion about the ROI is the more the merrier! :)

Lostvalleyguy
03-05-2014, 04:55 PM
Really the answer to your question is as individual as each business. If you are starting out, it is a good idea to set the bar and say this is the ROI I want to call it a success. There are other measures for the performance of a business, however, and they may change over time.

A new business may take a loss initially, but the measure of success may be the acquisition of a client base or an improved potential for a return.

mikka254
03-06-2014, 02:19 PM
Return on investment simply means, 'am I making a profit at the rate I expect?' If you're looking at your business from an angle of monetary value, it's not just about making a profit, it's how fast the profits are banked. Therefore, judge your return on investment at the rate you're getting your money back and only reinvest when there are orders to fulfil because some products are niche products that might get high sales in the summer but little to no sales in the winter.

StarFox64
03-08-2014, 06:38 PM
ROI is a good tool to use to compare the success of your business as time goes on. It shouldn't be used as a strict benchmark and not a concrete measure of success. It's probably best to keep the assumptions on what you expect to get on your return (whether it be for stocks, business endeavors, gold, etc.) at a conservative value.

eppie
03-09-2014, 03:50 AM
What is the ideal ROI for a business to call it successful? Is this the most basic and best performance measure of a business?

I would love to know more about this. Thanks!

100% ROI is just break even so doubling your investment return (200%) is just fine. To call a business "successful" varies with every businessmen and for me a business with a sustainable 300% (and up) ROI is successful. :)

fredkawig
03-09-2014, 08:19 AM
From what I understand. Return of investment happens when the capital you pitched in was returned back to you and you still operate on your business at the moment. That means all the other income you will garner will be profits already and no longer money to pay for your original expenses.

delusional
03-09-2014, 02:17 PM
You can't really stick a percentage on a business. It's also different for everyone. I would like to see at least 200% and more depending on how much I value the company myself.

Oivas
03-10-2014, 07:50 AM
There is no direct fit for all value over here. For example in the Manufacturing Industry a RoI of 5 -10% is considered to be a big number, while this same value can vary from sub-industry verticals. In an IT set-up the RoI can vary from 20% - 45% depending on the area that the IT company is focusing on. So, name the the Industry that you wish to be in and maybe I can give a apt response on which performance would fit you better.

Taru
03-10-2014, 06:30 PM
I'd say 100% ROI would be a good place to set your goals, but it's probably not practical to consider it as the main measure of success in business as it is also important to take notice of what or how much effort was made to make such a profit. If, for example, one were to put in so much effort into it that it becomes non-viable to do for the long term, then it would only be partially successful in my opinion. The best businesses are the ones you don't have to put in as much time and effort into because if you did then you might as well be in employment where you could potentially get the same amount of income for the same amount of work without having to worry about risk and uncertainty.

pahagwl
03-12-2014, 12:59 PM
From what I understand. Return of investment happens when the capital you pitched in was returned back to you and you still operate on your business at the moment. That means all the other income you will garner will be profits already and no longer money to pay for your original expenses.

I do not agree with your point of view that 'Return of Investment happens when the capital you pitched in was returned back to you and you still operate on your business at the moment.' The correct meaning is that Return on investment is the amount of gains/returns you make after investing a certain amount of money in a business venture. It is generally expressed as a percentage.

idlecuriosities
03-12-2014, 10:10 PM
This is going to be a bit alternative of what most mainstream experts would say, but I think it's important to factor in your personal enjoyment of running your own business and being your own boss. For a lot of people that is very empowering and they might be all right with taking a pay cut. As long as you're able to buy the bills and can comfortable afford expenses for your business and your personal life, I think return on investment is a moot point.

JohnSword
03-13-2014, 02:54 AM
Knowing the ROI for each of your marketing investments tells exactly how successful each initiative is per dollar spent. And that enables you to stop spending money on campaigns that donít produce results.

As such, you're able to focus all of your marketing dollars on the initiatives that are the most profitable. Once you identify tactics with a strong positive ROI, you can invest money confidently ó knowing that youíll recoup your investment and more. At the end of the day, knowing your marketing ROI allows you to pick up more business efficiently. And that, in turn, allows you improve all of your other financial numbers dramatically.

yossup
04-02-2014, 01:22 AM
There's no real answer to this. ROI is very dependent on many peculiar factors. If you have a ROI of only 10% but on a ten billion dollar investment, that's a huge amount of profit. A ROI of 50% on a $10k business is only $5k so you have to look at it with perspective too.

mramirsking
04-02-2014, 11:24 AM
It depends on your business type, but the return on investment may take over a year to happen. Businesses take a long time to develop and get established in the marketplace. I would have though a healthy profit margin would be between 5 - 10%. You would have to do some research on Google. The government have some good websites for starting up a business, and lots of advice on how to go about it.

yossup
04-02-2014, 11:24 PM
As long as you have a positive ROI big enough to allow you continue doing your business, then the IDEAL roi is dependent on you. How much do you want to make? Of course everyone wants to earn millions if not billions but how badly do you want to attain those figures? The ideal roi is a figure that you'll be happy with.

DomDom
04-03-2014, 04:27 PM
Yeah, everyone has crazy wishes these days. You need enough to make you happy.

mramirsking
04-04-2014, 08:34 PM
I would have thought it would take at least a year to break even and start making a profit in almost any business, what with all the investment needed to get the business off the ground. Once you do break even, a good ROI would be a profit margin of 5 to 10% I would have thought. Of course it depends on the market your aiming at and the industry your in. Get some free business advice from the citizens advice bureau. Do some searches on google, yahoo and bing, there is usually a wealth of information on starting a business and what ROI to expect.

basics_international
04-25-2014, 03:49 AM
Return on investment (ROI) is only one part of measuring the performance of a business. It doesn't really define if a business is doing good or bad. ROI comes in different forms. It all depends on what you consider as returns and costs. It can also be determined by different situations of your business.

Nate Kinsella
04-29-2014, 11:31 PM
Well I think this is the shortest and simple definition for ROI. Accountants or other finance related people using this term for evaluate the progress of business (http://www.accountants-goldcoast.com.au/investment-planning/).

"A profitability measure that evaluates the performance of a business by dividing net profit by net worth."

Vishal
07-01-2014, 01:30 AM
When we invest money in any business then we try to earn from that money. So in that case the return the profit of that money is called ROI. and this is actual the motive to setup a business of any candidate.

Terry Hopper
07-14-2014, 06:05 AM
Thanks for your commitment. It is right.

DarioEM
07-21-2014, 10:20 PM
What is the ideal ROI for a business to call it successful? Is this the most basic and best performance measure of a business?

I would love to know more about this. Thanks!

Success has different meanings for different people. Some people would be happy just getting their funds back, while others consider a success getting slightly more than their investment back. While still others measure success by a certain percentage of return measured by profits and earnings.

I think your question is too vague for a specific answer.

For example: The banks offer about 1% return on a CD (certificate of deposit) and some people think that is their only option as an investment. While others earn 15% and think the people who invest in CDs are getting ripped off. It's all a matter of perspective.

Henry619
08-09-2014, 12:59 AM
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Jerryjperez
08-09-2014, 01:35 AM
Return (ROI) is the very idea of an investment decision of a number of resource yielding an improvement to this investor. A top ROI signifies the investment decision gains review favorably to be able to investment expense. As the performance determine, ROI is used to appraise the efficiency of investment as well as to compare this efficiency of several different investments. Inside purely economic terms, it is a proven way of taking into consideration profits in relation to capital invested.

papu
08-21-2014, 06:41 AM
If we invest 1 lack in bank how much we can get ROI

dragon1991
08-21-2014, 09:22 AM
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papu
08-25-2014, 02:49 AM
what a good idea to get more ROI

David T. Breen
11-20-2014, 12:27 AM
ROI is the measure of profit and loss to your business and proof that your marketing efforts are working or not. The main challenge to measure ROI is keep changes in algorithm, implement the new strategies and show the market your ability to prove the clients that your service and works are the best.

Blackwingconsultants
11-20-2014, 01:20 PM
I would say, if you can make more money running the business, than say investing in a goverment treasury bill ; then it's worthwhile continuing.

E.g Say your 'SAFE govt. investment gives' 8% interest, you should target 9-10% post tax return on your investment.

Bear in ming that govt. securities also offer tax benefits and this has a bearing.

Grabowski
11-29-2014, 07:48 AM
ROI is the ratio of your net profit to your costs. It's typically the most important measurement for an advertiser because it's based on your specific advertising goals and shows the real effect your advertising efforts have on your business. The exact method you use to calculate ROI depends upon the goals of your campaign.

chrisalbert
04-08-2019, 09:47 AM
Basically its base on what Business you're planning and how to combine in all forms to get business and return on investment should be not like much but suitable for you and which gives essential benefits to you.

chrisalbert
04-08-2019, 10:00 AM
It's amazing journey also think about this in past what you have invest in your business till what you achieve in a form of ROI.

MichealCurry
04-12-2019, 05:20 AM
When you make profit so it possible to have loss as well. Every business has risk of loss so we can be reliable on any business. If any business which can give Good ROI every time. Even i would like to know?

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04-25-2019, 03:45 PM
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alahmady
06-14-2019, 08:15 AM
What is the ideal ROI for a business to call it successful? Is this the most basic and best performance measure of a business?

I would love to know more about this. Thanks!


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