Small Business Investing

Rois and Small Businesses

How else do small business owners mistakenly use ROI analysis?

Some experts assert that business owners may mistakenly use ROI analysis by not accurately including their own time in the expense (investment) side of the equation. Many business owners may not formally pay themselves regularly, and typically would not factor in or include the use of their own time, since they feel their time is “free.” If the owners are actually conceiving, funding, and implementing the idea, as well as selling the idea to clients and collecting income from the idea, their time and energy should be captured and not understated, as is often the case.


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