BizSugar.com › Finance › How to Calculate ROI For a Small Business

Do you calculate ROI for your small business? It's a useful number to be aware of, for you and your investors.

"In a small business, the uses of ROI could be to measure the performance of pricing policies, an investment in capital equipment, or an inventory investment. When purchasing assets in a business, such as inventory or equipment, you expect to get a financial benefit from the purchase. Return on investment is a tool to help decide between purchase alternatives that will either generate revenue or result in cost savings that benefit the net income of the business."