Track the money you make by measuring your ROI
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Do you want to measure the profitability of your investments?
If you do, then the ROI formula is what you need to use.
It compares your gains and losses to your initial investment. This allows us to quantify the success of your investments. And if we can quantify our successes then we can inform future business decisions and allocate our dollars and time with more assurance.
Let’s break it down a bit:
What is ROI, and why do businesses care?
- ROI measures the profitability of investments.
- ROI is a key KPI metric to any business. And,
- it guides you to making informed business decisions.
This financial metric measures the profitability of an investment by comparing the gain or loss to its cost.
The goal of this comparison is to bring you the bottomline result; profit.
Based on your profits you can determine whether you can afford to do certain things. Maybe you can now outsource your accounting. Or you have to cut back because sales are slow.
