There are a lot of places you can spend your time and money in your business.
And all things are not equal when it comes to how you spend your time and your money.
For example, there will be some things that you do, that get you a greater return on your investment of money.
Other things, well, you may decide you want to spend your money differently next time.
Know what I mean?
What you get back after you invest your time or money is called your “return on your investment” and we are breaking down the importance of this metric in today’s episode.
While you may not track your “return on your investment” for everything, just having a sense of what this is and tuning in will help you have a better sense of how you may want to spend your time and money in the future.
For example, I know that taking breaks — hello summer, resort getaways, and a good fiction book — fuels my creativity and gives me a great ROI.
Let’s dig in more in today’s episode, shall we?
As we outlined in this episode, let's say you invest 500 dollars in a course on webinars. If your course that you'll be selling in that webinar costs 1,000 dollars and you sell 5 spaces of your course through the webinars, you learnt how to implement from that 500 dollar course, bam, you just made 5,000 dollars on a 500 dollar investment. Solid ROI.
Of course, there might be other things that went into that investment from marketing and selling your course. You might have invested in a team, you might have invested in webinar software in addition to that course on webinars that you bought.
So think of all those other expenses when you're thinking of your overall return on your investment. Here’s a formula for how you can calculate ROI.
( Money Profited From Investment / Investment ) x 100 = Return on Investment % (or ROI)
In the case of our course on webinars example above, here’s what that calculation would look like:
( $4,500 / $500 ) * 100 = 900%
Not too shabby!!
Beyond money and financial investments, some things give you that return on your time. Me hiring a babysitter so I can go to the spa, get a massage, may not have an immediate or an obvious ROI regarding getting money back, but that is definitely an investment in my personal well-being. The amount of energy I have to invest into growing my business, and you can bet my family will be a whole lot happier.
And there’s nothing that beats a happy you and a happy family!
Start thinking about your anticipated ROI before you make investments into your business and think about your ROI after you have made investments. It’ll impact how you prioritize your money and time in the future!
I cannot wait to see in the comments, what are you thinking about when it comes to ROI? Do you even think about the ROI, or do you have a fresh perspective on this?
I'd love to hear from you, and I'd love to know what you're going to consider when you're making future investments in your business and your life.
Big love,
