Every business wants growth but not every investment guarantees it. Whether it’s launching a new product, upgrading tech infrastructure, or expanding into a new market, Return on Investment (ROI) helps you separate smart bets from sunk costs.
So, if you spend ₹1,00,000 and earn ₹1,20,000, your ROI is 20%.
Before spending on anything a new tool, training, marketing, or expansion you need to ask will this help my business grow? Is this the best use of my money? when will I start seeing returns?
While ROI is a powerful metric, it must be complemented with strategic alignment, Long-term vision, Sustainability and ESG considerations, & strategic alignment.
What could go wrong? Think of “what if”: What if sales drop? What if the software doesn’t work as planned?
Some projects have low ROI but are still needed (like legal compliance). Others may have high ROI but don’t fit your business needs.
So, don’t follow ROI blindly but use it to make better decisions.
Whether you run a startup or a growing company, use ROI to avoid wasteful spending, pick the right projects, grow your business wisely.
ROI isn’t just math it’s your business growth in numbers.
#roianalysis#roiexplained#startups#simple finance
