Entrepreneurs struggle with their ROI on businesses. Starting a business is not a difficult task but sustaining it becomes challenging. I've seen a numerous companies go bankrupt after good years of sales. Knowing the reason behind is lack of future projections.
According to you, what should be the ROI for newly launched startups?
My views are around 15% per annum but it would take around 6.6 years to earn the initial amount back. Would it be a bad decision?
ROI for startups? Lol. If you would see most of the scaled startups around 80% of them are unprofitable even at the EBITDA level which is Earnings before Interest Depreciation & Amortization. This means they are running on zero ROI in fact most of them are just burning cash. Startups these days are more about increasing your revenues even if that comes at a huge acquisition cost, also some startups don't even work for revenue, they are running and scaling due to their increasing consumer base, so I don't think you should worry a lot about ROI in the initial stages of a startup, Focus on improving customer acquisition, retention & satisfaction and just try to avoid cash-burning, try liquidating your equity a bit by finding investors because that would be the only quick way to scale up your business.