What Every Entrepreneur Needs to Know About ROI

I’m sure you’ve heard this before:

What’s the ROI?
How do we measure the ROI?
Are we getting enough ROI on this?
What’s the ROI for that?

It seems that all business owners talk about is ROI, right? It gets a little annoying.

“But wait”, you say, “isn’t that what they should be thinking about?” 

Well, of course! As a business owner, you HAVE to think about the return on your investments. It’s the only way you can really decide whether or not what you’re doing is worth your time and money. 

The thing is, ROI is about more than money, and that gets forgotten. 

 

ROI is about so much more than money

Think about it. If you pay a designer $500 to design some graphics for you, they’re going to be beautiful, just what you wanted, and ready to go. If design is not in your zone of genius and you try to do it yourself, you’ll probably spend hours banging your head on your laptop and frustrated when you end up with something that looks like crap (even Canva can’t make miracles). Then on top of that, when you bring it to a printer they’ll probably tell you it’s all wrong and you need to start over. You wasted countless hours on something you could have outsourced…and how much is your time worth? 

What was the ROI on that? Negative? Damn.

Or maybe you decide DIY is not the best use of your time, and you’re actually going to hire it out (yay!). But then to save a buck, you hire some yahoo on Fiverr to design your logo. You spend weeks going back and forth trying to get something (anything!) that doesn’t look like a piece of bad clip art trash. You end up paying more than you expected for a logo that is better suited for a lemonade stand. Money wasted? Not so much. Time wasted? Lots.

What was the ROI on that one? Yeah, I thought so.

 

It costs more than money to get things done. 

Money out of pocket
Money as time spent
Money as energy
Money as sanity
Money in soul-sucking activities

It’s pretty obvious that I’m talking about a different kind of currency. 

 

So what did that last launch really cost you?

Did you spend so much time promoting it that you didn’t sleep and drank twice your weight in coffee?
Did you spend so many hours developing it that you missed out on precious time with family?
Did you go against your values and use a guru’s blueprint that made you feel slimy and gross?

 

What was the real ROI?

What was your investment of time, money, heart and soul – and what did you get in return? Did you make a ton of cash? Great. Was it worth it? Only you can answer that.

Did you sacrifice yourself and get little to show for it? 

And if you did have a fantastic launch, would you do it again

 

Focus on more than just the money

ROI is about measuring what you get in exchange for your efforts. If you meet your financial goal but your reputation is mud, that sucks. If your relationships are in the toilet because of your work, that sucks more.

When you’re measuring ROI, be sure you’re looking at the big picture, not just at your bank account.