Small Business Investing

Rois and Small Businesses

How might a small business use ROI analysis for strategic planning purposes?

A business may have several products or services, each with distinct costs and income. Each product or service generates a return for the capital used to support the product or service in a given time period. A business can run ROI analyses to decide to improve or eliminate lagging products or services. If the business sees line items with better ROI, it may seriously consider investing more money and expanding this area of the business.



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