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?
It's impossible to put a definitive figure on this as it is so wide ranging. If you're starting a shop selling sweets or a hairdresser, you have quite static costs and should be able to judge your income stream fairly quickly. If you're pioneering a new type of online game, hoping to see it skyrocket in popularity to pay off your bank loans, then it is quite possible to jump your income hundreds of percent per year. Any company selling a product should generally aim for 100% profit on each item if they are not generic, which would translate into reasonable margins above what you're expecting. If you're looking at it from the eyes of a venture capitalist, then 15% is definitely not worth it - you can buy into some well established companies with a steady income that make close to that for much less risk.