ROI can be defined a number of ways, the two that I am referring to are:
· Return on investment
· Reliability of income
When running a small business both of these definitions can be key influencers are most likely ignored.
Return on investment, small business owners perpetually are making decision on where to put resources. Some are needed immediately, others can be deferred. Others still should have analysis and thought put into place before the decision is being made. What will be the return on this investment?
Reliability of Income: is most likely tied directly to the return on investment for the reliability of the income to be generated by the investment. Whether it is an employee, or a machine how will the decision impact the revenue stream? Will it be a reliable income stream or will it be a momentary blimp or impact?
Who in your business is looking at these questions?