B2B Wise

Friday, January 27, 2017

WHAT IS ROI or Return On Investment

Karamihan ng tao na gustong magsimula ng kanilang negosyo ay palaging iniisip ang kanilang ROI.

They ask themselves:
"Kailan ko ba mababawi ang aking puhunan?"
"Ilan percent ng puhunan ko ba ang kikitain ko?"
These questions are all valid, but here’s where the problem comes.

Many people do not get the concept of “investment.”

Investment is a term used loosely by many entrepreneurs. Many of us really have no background on business or marketing. So, it is reasonable to say that we maybe using the term slightly different.

A) Some people use the word “investment” pertaining to how much money they have to spend in order to get something back.

B) Some people use the word “investment” pertaining to placing money on the stock market or mutual funds and letting their money grow.

C) Some people use the word “investment” pertaining to putting in the time and effort to a business and seeing the results later on.

Now, the question is, which of these are correct?

Well, they are not all wrong, but they are not entirely correct either.

A) People confuse the word “investment" with the word “Capital.” Capital is the money you used to start a business.

B) The word “investment” in this case is used properly since it is placing money on something, without doing any much work and let the money grow.

C) Now the term “investment” here is used to in layman’s terms. It is used to denote the fact that you placed your time and effort or something of value to you and expect some form of outcome greater than what you put in.

Now, what’s my point here?

When you talk about Return On Investment, you have to specify what part of investment are you talking about.

If you’re talking about money, then you expect that the more money you put in, the higher the probability of getting a greater return.

Ngayon, huwag tayong mag-expect na naglabas tayo ng P100 sa isang bagay tapos may babalik sa atin na P100,000. Ito po ay business and hindi po ito lotto.

If you’re talking about time and effort, a good example here is our education. It is understood that the higher your educational attainment, the higher your salary.

Similarly, the more experience you have, the higher your salary. Sa trabaho, mas malaki ang sweldo ng mga nakapagtapos ng college kumpara sa mga hindi. Mas mataas din ang sweldo ng mga matagal na sa kumpanya dahil sa promotion kumpara sa nagsisimula pa lamang.

In the same way, I’m sharing my Business for you to START YOUR OWN BUSINESS. It is NOT a monetary investment that you just place and expect your money to grow on its own.

The Business itself will not make you money unless you study it, learn from it, and then apply it. We can help you with it, by training's. And as a group we are going to help each other. So don't hesitate to ask kung may mga katanungan kang gustong malaman sa Business na ito.

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