What should be a good ROI for a startup?

[Kasabus]

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?

There is no certainty in expecting for an ROI amount since not all businesses are bound to succeed, others have become doomed in the end. But for an in demand business that will surely work for the customers, the ROI may even hit 80%-100% at the end of the year, but for those who only show slight movement of success, i guess the ROI would only range lower from 20% per annum.

[Pejoh Asu]

It takes a large capital to be a startup, this is because the competition is very tight, in my opinion a good start -up is the focus on a large market, and the current trend is online shopping, provide shipping discounts for all purchases so we must have cooperation Strong with expeditions, and if success is usually around 3 years already get ROI.

[wxa7115]

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.

[Pujangga]

The competition for giant start-ups is very tight, many giants die because they can't compete with new, more aggressive startups, and I think the RoI of startups is very long, if we can get RoI in a year, we are very lucky.

[evilgreed]

               Businesses are never easy, specially for the ones that have capitalize on a single trend. But yes, even those that have great products or services still fall short at times due to lack of experience or perseverance itself, and even when you have all these, you can still fail on a business depending on a wide variety of reasons. And about ROI, I myself wouldn't suggest any numbers because again, there are a lot of variables to consider when doing a business. Best option would be to just adapt to changes I guess and have at least good enough reserves left to support your business on bad years.

[justdimin]

Business is something which should be taken as long term investment and artwork of patience! It’s built stone by stone and you have to have considerable amount of hardship with it. I don’t think math should be put forth immediately. First you need to set up base for it, have recipe ready for your business which includes smart to hard work, management, plan executions and much more. Once you have product or service ready and available in the market then you should start with the ROI maths. Sometimes you could get more than enough sales and sometime you may not get anything. So it’s really upto that.

The fact that you need patience to build a business also requires money. I get that you can't be rich overnight, but realize that most businesses require you to earn something. If you are going to focus on it full-time then you need it to make enough so that you could pay your bills.

For example, I earn a decent amount right now, if I quit this job and start my own business, and it doesn't earn, then not only I do not have a good business, but also I can't pay my bills and eat food, what am I suppose to pay that with. This is why I believe that even though it shouldn't be something huge, it needs to earn at least enough to pay the bills.

[LogitechMouse]

According to you, what should be the ROI for newly launched startups?

I think instead of thinking of an ROI if you are a newbie, think of a way to survive. Doing research always, find the trend, your location, the target of your business that you are building etc. etc.
What I mean when I said survive is that how will you survive in the succeeding years to come. What will you do if something bad happen to your business?
This pandemic really affects the business sector especially the small and the medium ones that they need to stop it because they are losing money. Its a good thing that some are going back again to their usual business and recovering from their past losses. There will and always be negative events and things in business always so better to think of ways to surpass them instead of thinking too much of the ROI. I'm not saying that don't return your investment but don't focus on it.

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?

No it isn't a bad decision at all. Most of the business especially the small ones doesn't last long and if you're business will last for 6.6 years then it will be a successful one. Successful companies right now took years in order for them to be successful. I just remember Alibaba of Jack Ma where it took 14 years before they will become successful.

[Mometaskers]

This would really depend on what industry you are entering. I remember for a time when food trucks were the rage I remember hearing from TV that it takes 1-2 years to get ROI, which I thought wasn't shabby - assuming your business last that long.

[merchantofzeny]

I haven't considered it'll take more than 6 years to get a ROI. I guess best way to go about this is find out the standard ROI for whatever business you are planning to build. Your goal will next be then to survive that long. If you can breakeven earlier then that's just a bonus.

For example, I earn a decent amount right now, if I quit this job and start my own business, and it doesn't earn, then not only I do not have a good business, but also I can't pay my bills and eat food, what am I suppose to pay that with. This is why I believe that even though it shouldn't be something huge, it needs to earn at least enough to pay the bills.

I don't think this is a good way to go about building a business. It should be separate from your own expenses and you must be willing to NOT take a paycheck from your own business during its infancy to be able to reinvest that money back into it. So if you are quitting your job, you wouldn't be relying on the cashflow from the business for your needs, you must have a separate savings to sustain you until the business takes off and can afford to finally pay you a wage - which could be lower than your current paycheck.