How to Improve ROI

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

Depending on what type of return you’re seeking on an investment you make in your business, there are different ways to improve your ROI. Returns can include increased profits, reduced expenses or intangible benefits such as improved operating efficiencies or increased brand awareness. Clearly defining your goals and setting as many quantifiable benchmarks as possible will help you increase the payback on the different initiatives you take to improve your company.

Define “Return”

The first step in improving your return on an investment is to clearly define the potential return or returns you might get from your investment. These can include higher sales, increased revenues, bigger profits, reduced overhead or production costs, higher employee retention, better customer satisfaction, increased brand preference or fewer government regulations. If possible, set multiple benchmarks for your return goals. For example, instead of setting increased sales as a goal, set increased sales during a specific month, in a particular territory, using a specific sales rep or from a particular distribution channel as a goal.

Calculate Your Current Return

To improve the returns on your investments to the point that they warrant your not pursuing other opportunities with that cash or effort, you must know the return you’re currently getting selling a product, using a particular piece of machinery, retaining a specific employee or continuing to do whatever else you are measuring.

Do you need more detail on this subject? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on (0413) 616-538.

Thanks,

Dan