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?
Unless you add those incomes back to your capital and lessen that 6.6 years of yours. We are nearing our 2nd year of our small business since it started running way back august June, 2020. I have seen a lot of changes in just a year. That small amount of money had become to the point that we've manage to get a decent car, house and lot, and paid bills not exceeding a thousand dollars a month. We have manage to rake 20 to 30 percent income per annum, it depends on the business you had. We started on an 800 dollar worth of products, and now it is worth around 40k USD all in all. All we did was put all the profits back to capital and bought more products to sell, and we did not stop until this day, we are going to continue and hopefully it gets better. By the way the products that we sell at first was, mask since it was so hype back when COVID was just starting. We've moved to beauty products now since most people here stayed at home. Now we've entered the food and clothing sector, which is imported from different countries. I have realized that all consumables are easy to sell unlike clothes and other things that are not essential goods. People needs food, hygiene and clothing, and this was our target from the start so I guess it is all good for now.