What should be a good ROI for a startup?

[macson]

Depends on a business and the location of the Business. If you’re planning to have a huge business with huge capital, you can’t expect to have a decent profit in the next three years but if the business is consistent and with a regular customer, I believe ROI can still happen. There’s a lot of failed businesses, mostly a franchise business but that’s fine if you’re one of the owner, just learn from that experience and do better next time, feasibility study is also important before putting up a business.

Feasibility study includes the location of the business and what business you will run, the feasibility study is important in starting a business.  before starting my business which i am now living, i did a study first for months, i got this from a successful entrepreneur who has many businesses and this method is proven to be very effective.  Besides that, in investing, this is also very necessary so as not to lose money.

[Zilon]

For startups 20% is not a bad ROI per annum. This percentage might look small to small and medium investments but considerable for large and average investment. But what ever the category having a realistic ROI keeps greed far from investments. Investment is only fun with reasonable capital. For small and medium investors it looks like use a cup to fetch from an ocean but with patience the small investors too gather enough that can stand as big start up capital

[ethereumhunter]

I don't know if it was a bad or good decision because each entrepreneur has their own business target. Maybe an entrepreneur has a target, as you say, but another entrepreneur has a different business target. Maybe I can say that the company has not been able to get ROI for the first five years because the company still needs to focus on promotional targets and get more customers. So there is a possibility that the company can get ROI after the first five-year phase. But maybe I am wrong with this because I am not an entrepreneur.

[Captain Corporate]

I still think that people should be focusing a bit more on the sustainability of a business rather than how well it is doing. There are companies who make millions upon millions of dollars and they go bankrupt after a while, and there are some that barely make enough for the owner to live on and they keep going for 50 years. If you want to get super rich super quick and get out, I understand you, its an idea that many people have these days, during early 2010's the "startup" culture got super high and everyone wanted to build the next thing facebook would buy, but I rather be the butcher down the road who has been living nicely for the past 50 years, that guy seem to figured things out long time ago, and he has been living a good life without much stress.

[el kaka22]

Feasibility study includes the location of the business and what business you will run, the feasibility study is important in starting a business.  before starting my business which i am now living, i did a study first for months, i got this from a successful entrepreneur who has many businesses and this method is proven to be very effective.  Besides that, in investing, this is also very necessary so as not to lose money.

Depends on the type of business you will start. If you are starting a shop then it does matter where you will start because you want to sell products to people and you want a lot of people to see you.

However, if you end up with a business that is manufacturing then it wouldn't matter since people expect you to send them by trucks or whatever, or if you start a digital business that runs online then you wouldn't need any place at all, maybe an office when you grow big but that's just a later stage when you have money anyway. Hence, there isn't really one true answer when you are in business, there are situations and you act according to whatever you need at that moment.

[The Cryptovator]

ROI depends on what kind of business are you going to do. Most startups just get out from the middle road, they can't reach the final stage. So before expecting an ROI should establish your business. Choosing the right startup business is quite important and experience keeps a role to establish your business. So can't determine ROI from the beginning if it's not an existing business.

[Quidat]

ROI depends on what kind of business are you going to do. Most startups just get out from the middle road, they can't reach the final stage. So before expecting an ROI should establish your business. Choosing the right startup business is quite important and experience keeps a role to establish your business. So can't determine ROI from the beginning if it's not an existing business.

You would really be thinking first about on how you should gonna sustain your business because it wont really be an assurance that you would survive on the time that you had put it out.
Of course you would really be finding ways on how you would really be profitable and this is the right time that you would really be thinking on having ROI and its true that it would
vary on what kind business that you are running since we know that there are lots of types and industries which you could really make yourself involved with.
Calculations would vary but of course it would be just on the right time.

[Johnyz]

ROI depends on what kind of business are you going to do. Most startups just get out from the middle road, they can't reach the final stage. So before expecting an ROI should establish your business. Choosing the right startup business is quite important and experience keeps a role to establish your business. So can't determine ROI from the beginning if it's not an existing business.

If you put up a business you should always have your target profit, but of course things are not easy if you have a business and you can only know this once the operation of your business started. Some are doing great on their first quarter but most of the new business owners losses their faith on their business on 2nd quarter. I think its better to think for long term scenario, just access your business if they can still cover the expenses I believe that will work in the next 3 years. There’s no accurate percentage for ROI though, just take the risk and compute along the way.

[Cookdata]

Crypto wouldn't let me think of other business especially now that you could easily get promised huge return from New projects with shit staking APY and fake percentages.
You are just interested on the percentage, you forgot that factors affect ROI and it doesn't always get achieve as you have stated. For a fresh start up, you need at least to be able to deduct your total cost of production (investment) from the final value.

15% per annum is not unreasonable for an investor to aim at for the year. But I don't know how you mean by 6.6 years, you mean to get back the invested money ? How do you get to such calculation for 15% profit in 6.6 years time, you didn't take into consideration of tax, inflation etc.

If you multiply 15% by 6.6 years should give you %99, other things you specify weren't consider.

[Viscore]

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?

If you were a student of business studies, you wouldn't have asked this question. You should know that there is no fixed ROI for sustainability of a business. Sustainability of a business depends on numerous factors and future projection is just one of those factors.

Do a market research on your competitors. Use websites like Statista to gain insights. See what is the average ROI in your field of business and now see prepare a business forecast to see if you beat the average ROI.

Precisely. You can't expect a fixed ROI because the market situation too may differ in some ways. But as long as you hit the average ROI for a certain business, i guess you will see consistency in making profits. Same as you can't guarantee as to how long your business will stay competitive in the market.

[verita1]

If I wanted to start a small business I would like to earn a 30% ROI at the start of operations. I would like a fast food business, these are my ideas, but making it a reality implies good planning to achieve ROI.
I would also have to deal with inflation and market conditions.
But if we take a look at the opinions of the experts we realize that our expectations are a little different.

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower. But overall, performance will smooth out to around this amount.

https://www.forbes.com/advisor/investing/roi-return-on-investment/

[AmoreJaz]

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?

If you were a student of business studies, you wouldn't have asked this question. You should know that there is no fixed ROI for sustainability of a business. Sustainability of a business depends on numerous factors and future projection is just one of those factors.

Do a market research on your competitors. Use websites like Statista to gain insights. See what is the average ROI in your field of business and now see prepare a business forecast to see if you beat the average ROI.

Precisely. You can't expect a fixed ROI because the market situation too may differ in some ways. But as long as you hit the average ROI for a certain business, i guess you will see consistency in making profits. Same as you can't guarantee as to how long your business will stay competitive in the market.

and just to give example why we can't determine a fixed ROI, during this pandemic period, you can't get your target roi because of so many restrictions and uncontrolled situations. you can have your estimates but not fixed ROIs. also, it depends on the demand of your services or products. better if it is used massively by regular people but if you only have special niche to tap, that would be hard. also, you need to innovate as your competitors may be upgrading and you need to get ahead of the game as well.

[Pejoh Asu]

Reports from sources stated that many start -ups that continue to burn money, there are even start -ups that have burned more than 10 years of money and always report losses in large quantities, if startups can get a 15% ROI per year, of course it is good because the current competition is very strict.

[MinMan]

I think that this is something that has to do with the industry that you’re into. Every industry is never the same, there are some industries you would be into and the expected ROI would be around 15% to 30%, and some can go as high as a 40% and more.

So, I think that it is best that we study the industry that we are going into, and that would help us come to the conclusion of what should be expected from the start-up. Another you also have to know is that small businesses take a lot of risk, so things can as well differ. Finally, it all comes down to the team, if they play their part really well, everything goes successfully.

[Flexystar]

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.

[iv4n]

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?

It doesn't work that way ... if everyone could count on 15% ROI from the beginning then everyone would be a businessman! Depending on the business, there is no ROI in the first few months/years, you can even be in the red until everything starts, here we say "until the wheel start turning"! Like it's hard to make a wheel starts spinning, but once it starts it will be easier! I said months or years need before that, how much exactly depends on what kind of business you plan to start and many other factors! Only when you put the business on its feet profit start coming! Of course, if you did everything well in the beginning!

[BuNga_cute]

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.

I agree that business is like we make long term investments, hard work and patience are important factors for success in business. I agree it's better
not to focus too much on calculating ROI when starting a business, it will only be a reason to stop if our ROI calculation is not achieved. The most
important thing in starting a business we must understand the products and services that we will offer, even better if we like the products that we will
offer. After that the most important thing is how we do promotions, so that promotions are maximized, determine the market that really needs
the products and services we offer. If we have done all that, we can start the calculation of ROI. We must remember that loss in business sometimes
we have to experience it first, so that we can evaluate our mistakes. Sometimes we need a long time for our business to grow, like any
long-term investment, we must be patient and never give up if we want to make our business successful.

[Mahanton]

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?

It doesn't work that way ... if everyone could count on 15% ROI from the beginning then everyone would be a businessman! Depending on the business, there is no ROI in the first few months/years, you can even be in the red until everything starts, here we say "until the wheel start turning"! Like it's hard to make a wheel starts spinning, but once it starts it will be easier! I said months or years need before that, how much exactly depends on what kind of business you plan to start and many other factors! Only when you put the business on its feet profit start coming! Of course, if you did everything well in the beginning!

Not be that an easy way for you to achieve on and there would be lots of hurdles and challenges along the way but somewhat this is been part because no one hadnt able to experience these things.
When you are doing investment then of course you would be thinking or minding about ROI but you should really be minding on how you would really make your business or investment survive
for long term aspect because this is on where you would be determining if you could really make out profits or not for longer duration.Dont rush up yourself because this would
only create haste decisions which might lead to mistakes.

[jaberwock]

Reports from sources stated that many start -ups that continue to burn money, there are even start -ups that have burned more than 10 years of money and always report losses in large quantities, if startups can get a 15% ROI per year, of course it is good because the current competition is very strict.

Yeah, 15% is already a really good one because there are so many that don’t come any close to that. Some are usually 7% to 10% ROI, so if it’s getting up to 15% then it should be seen as a really good one. Although I’m not saying that something less than that is bad though, the 7% and 10% that I have mentioned are not bad, because a lot of things comes into considering when determining what should be the right ROI, you should compare with other companies and see what they are making.

[Fivestar4everMVP]

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

When you say "ROI for newly launched startups", I don't recall understand, but I want to assume you mean return on investment for new companies?.
If that is what you mean, then I will honestly use my self as a reference here, if I were to be starting my own crypto company, the last thing on my mind would be ROI, what I mostly would care for so much is to make my company stand by achieving targets and goals, and at the same time aiming for the top, cus I know that ones the company is able to get to the top, My ROI can come even within one year, no need waiting 6.6 years or whatever,(I don't know how you came about this number of years anyway.)