Understanding return on investment for business owners

ROI is simple in formula and messy in practice. Net gain divided by cost, expressed as a percentage. The hard part is knowing what to count as 'cost'.

Most founders forget opportunity cost. The $20k you spent on that initiative is also the $20k you didn't spend on the next.

Time has a price. Founder hours are the scarcest input in any small business. Cost them at your highest-value billable rate.

Compare opportunities against each other, not against zero. The right question is rarely 'is this worth it?' It's 'is this more worth it than the alternative?'