Think about how you spend money on your business. Are you doing so in hopes of achieving growth?
While spending money can bring positive results, it can turn bad soon enough if you are not tracking your return on investment (ROI) - commonly defined as your net profit divided by your total assets.
As a business owner, you must keep tabs on the following:
When you track the ROI associated with every expense, it is easier to determine where you should spend your money in the future. Here are three ideas to consider:
No two companies are the same. No two owners have the same business plan and strategy. The way you spend money is unique to your organization, and is based on your beliefs, industry, and goals. Even with all that in mind, nothing changes the fact that you must track the return on investment associated with every dollar you spend. By doing so, you will have a better idea of where you should spend your money now and in the future.