Return on Investment Calculator

Category: Profitability

The return on investment calculation can help you make more profitable business decisions.

As a CFO for a beer wholesaler, I was in charge of the purse strings at the company. Everyone wanted to spend money on one thing or another.

Our delivery manager wanted new trucks, the warehouse manager wanted more space, the office team needed new equipment and a re-model, the list went on and on.

The first question I would ask when folks came looking for money was: Will we get a return on investment?

In other words, if we spend a dollar, will we get a dollar back? Or two? Or ten?

In business, the job is to identify areas to invest so that you get a future return. Simple. But we don’t often enough apply this concept to every day spending.

Until now.

By way of example, in the short video below I go through my ROI process on VxP compensation software.

How much will it cost? What are all the fees? How much of a return will we get? How sure are we that we’ll actually get it? How can we track/validate this return? Etc.

Do this next:

  1. Watch the video below and download the Return on Investment template– identify where you can apply this in your beer business
  2. Join the beer business finance association – a network of wholesaler owners and managers focused on improving gross profits, cash flow, and business value

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