I was lucky enough to have the opportunity to run my own financial planning business for 4 years. I worked on a financial plan for a small local hospital, and then went on to work for an international insurance company that helped businesses and their owners plan their financial futures.
We decided that as a businessperson you need to know what your ROI is. This is the amount of money that you earn by using your money to maximize your profits. The ROI is the money that you are able to earn by doing a certain amount of work.
So, let’s say you invest $1,525,000 in a business and earn a return of $775,000. That’s a total of $1,975,000.
That’s a ROI of $75,000.
Of course, the amount of money you earn is based on the amount of work you put in. If you were to work for a company that earned a return of 1,525,000, you would earn 775,000 to the company. Of course, you would earn all that money working and not working. So you’ll earn the same amount of money whether you’re working or not.
ROI is not just a number. It is a concept that determines if the return on investment is greater for an individual or a company. To illustrate ROI, lets imagine if you invest $100,000 in a company and earn a ROI of $50,000. If you invest $225,000 in a company and earn a ROI of $100,000.00, you will earn $225,000.
ROI is one of those concepts where the math is easy, but the concepts are not so straightforward. For example, instead of saying that a given company’s ROI is 50,000, you can say that the company’s ROI is 50.00. Or you can say that the company’s ROI is 10,000, but that is not exactly true. It depends on how you define ROI.
ROI is usually defined as the amount of money a company earns over a period of time. If companies earn $100,000 in a month, but only earn $10,000 in a year, then your ROI is $10,000.
ROI is usually calculated using a formula that divides the amount of money earned over the period of time by the amount of money earned over the period of time. That formula is known as the ‘yield’ and is calculated by dividing the amount of money earned over the period of time by the amount of money earned over the period of time. If the amount of money earned over the period of time is $25,000, then the yield is $1,000,000.
The formula is simple enough. Because your company’s profits are in the form of dollars, the formula tells you the amount of money you will have over the period of time you invested. When you invest $1,525,000, you will have $25,000 from the first month, $15,000 in the second month, $10,000 in the third month, and so on.
