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 is quite difficult for a startup to predict ROI. At the time of the formation of a startup, 70% -80% still do not understand that they simply will not reach the estimated level of implementation of the project itself within 9-12 months. After that, they are waiting for the extinction and loss of investor interest. The rest will clamber and try to do something. Only a few of them will survive. Fantasies and ideas are great! The implementation of a working project, the market, the nuances and competitors are completely different. Measuring and setting ROI for a startup is a very dubious act....