[tsh]

Hi there!

I am in the process of trying to figure out my potential rate of return for my new business.

I have researched th topic of ROI, and know the formulas, but want to check my work against someone else's.

Anyone willing to do some math and configure my ROI, so I could see how you do it and if I am doing it correctly? If so, I will provide the numbers.

I would very much appreciate it.

[radreality]

there's a big difference between potential rate and actual rate. To figure out a potential rate is like predicting the future. I've heard many business experts say its pointless. You should still do it, so you have some goals to reach for, but the numbers don't mean anything until they are real.

Keep your potential figures and then compare them to your real figures when you get them. As time goes on and you have a history of real figures, you can better predict the future.

Sorry if this wasn't really the answer you were looking for.


______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[tsh]

Thanks, Robert. I appreciate you taking the time to respond, and I see your point.

I need to determine my potential rate for my investor.

I would still LOVE it if someone could take a stab...please...I am very green to business...

[akula]

Originally Posted by tsh

Hi there!

I am in the process of trying to figure out my potential rate of return for my new business.

I have researched th topic of ROI, and know the formulas, but want to check my work against someone else's.

Anyone willing to do some math and configure my ROI, so I could see how you do it and if I am doing it correctly? If so, I will provide the numbers.

I would very much appreciate it.

yeah..I can do your numbers

ebita, roce, IRR, vertical/horizontal analysis...the whole shebang

professional ROI forecasts are difficult...you need to be very familiar with Entrepreneurial Finace by Smith

I need:

- Your P&L, BS and cashflow forecasts
- The terms your investor is offering you
- The data to be made public on this forum otherwise there is no point for me to do the numbers

in other words, I'll only help you if it's for the benefit of the community

if you do not wanna do this, get the book in your library, it has an electronic supplement, fill out the spreadsheets and presto!

[sniping4dummies]

Originally Posted by radreality

there's a big difference between potential rate and actual rate. To figure out a potential rate is like predicting the future. I've heard many business experts say its pointless. You should still do it, so you have some goals to reach for, but the numbers don't mean anything until they are real.

Keep your potential figures and then compare them to your real figures when you get them. As time goes on and you have a history of real figures, you can better predict the future.

Sorry if this wasn't really the answer you were looking for.

This is the absolute truth. If every venture I've ever taken reached 'projected' return, I'd be a very rich man now. What I've learned is that the first few dollars are always the hardest ones to make, and I always expect to take several months getting the basics completed, before it finally picks up steam.

Let me tell you from experience that the absolute best feeling in the world is meeting/exceeding your expectations. I can work like mad for days off of the sense of accomplishment I get from achieving a big goal.

That being said, when you 'project' your returns, you should project based on how much income you will need to reach certain benchmarks, IE what you need to offset your initial startup costs, what you need to make the jump from a one person show to a staff of people, etc. Figure out what you have to do to reach these benchmarks, then figure out how much time you need to put in to do that, and then DO IT! You won't succeed every time, but if you use a process-oriented strategy for reaching your goals, you'll only become better with time.

Good luck!