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When doing projections how fast do you need to ROI?

Growth & Learn

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Hey all,
For those of you who do a lot of reinvestment back into your business...how fast do you need things to ROI? How do you quantify for yourself whether it's worth losing money on an investment in year 1?

Up to this point most of my projects have ROI'd within 3 months. (Yes, I know that's fast). But, I'm looking to scale bigger in 2017. So, I'm looking into some potential longer term plays/larger reinvestments.

How do you go about making these type of decisions in terms of taking on risk etc.
 
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UncleIroh

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Hey all,
For those of you who do a lot of reinvestment back into your business...how fast do you need things to ROI? How do you quantify for yourself whether it's worth losing money on an investment in year 1?

Up to this point most of my projects have ROI'd within 3 months. (Yes, I know that's fast). But, I'm looking to scale bigger in 2017. So, I'm looking into some potential longer term plays/larger reinvestments.

How do you go about making these type of decisions in terms of taking on risk etc.

Not talking from experience but calculating your LTV will be REALLY helpful. This way you can take calculated risks.
 

Growth & Learn

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Not talking from experience but calculating your LTV will be REALLY helpful. This way you can take calculated risks.
This is a cross sell. Related but different market. So, not sure how lcv will actually play out.
 

Growth & Learn

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Hey all,
For those of you who do a lot of reinvestment back into your business...how fast do you need things to ROI? How do you quantify for yourself whether it's worth losing money on an investment in year 1?

Up to this point most of my projects have ROI'd within 3 months. (Yes, I know that's fast). But, I'm looking to scale bigger in 2017. So, I'm looking into some potential longer term plays/larger reinvestments.

How do you go about making these type of decisions in terms of taking on risk etc.
Or perhaps a better question to ask...what's your process for deciding if something is worth investing in your business?

Formulas, thought processes?
 
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CJ Turner

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Or perhaps a better question to ask...what's your process for deciding if something is worth investing in your business?

Formulas, thought processes?

So you are already getting a ROI within 3 months, so why not further iterate what you have already.

Are you splitting this down as cost per customer?
Does it take 3 months for the customer to see your ad, to eventually pay you money?
Is it 3 months to recover the complete investment + profit?

For me, id continue working with what you have.

Without knowing the product and what you are investing in, it's difficult to suggest anything.
 

Growth & Learn

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So you are already getting a ROI within 3 months, so why not further iterate what you have already.

Are you splitting this down as cost per customer?
Does it take 3 months for the customer to see your ad, to eventually pay you money?
Is it 3 months to recover the complete investment + profit?

For me, id continue working with what you have.

Without knowing the product and what you are investing in, it's difficult to suggest anything.

Well, the first business is a smaller market. So, the reason I'd be entering in the 2nd business is to grab a much larger market share. But, as a result we're dealing w/ some strategy stuff and $$ that is a little new to me.
 

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