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?
What happens is that creating a company has a completely different set of problems than maintaining a company, for what I have seen many businesses start too big and acquire too many responsibilities early on which end up crushing them at the end.
So a startup needs to start slow and concentrate on reducing costs as much as they can, because it is obvious by the example that you give that even if a startup was making good money that they were spending even more of it and that is why they went bankrupt, and about the ROI you want it is not out of this world but this is something that you can obtain with many other investments for a lower risk, so at least to me it would not be worth to invest in a startup that gives so little money.