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?
15% isn't bad, it is actually good for the start-ups. Target will also change and possibly it grow depending on the situation and business results.
In fact, Big companies will not look for quick returns but what they consider is how their company becomes sustainable in the long run as ROI starts mostly after 5 years since the start of their operation. That is why they need some backup money in order to sustain and remain in the operation.
But, this is not only the thing we may consider, some companies declare bankruptcy because of their poor management and no concrete plan. The failure of the companies not really because of money but it was because of the staff who manage and involve in the operation.