Page 1 of 4 123 ... LastLast
Results 1 to 10 of 40
  1. Collapse Details
    Return on Investment
    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!


    Share on facebook


    Reply With Quote
     

  2. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

  3. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

  4. Collapse Details
    Quote Originally Posted by crimsonghost747 View Post
    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!


    Share on facebook


    Reply With Quote
     

  5. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

  6. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

  7. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

  8. Collapse Details
    Quote Originally Posted by janineaa View Post
    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.


    Share on facebook


    Reply With Quote
     

  9. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

  10. Collapse Details
    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.


    Share on facebook


    Reply With Quote
     

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •