What is ROI?
Like everything in life, business has its own jargon that everyone involved needs to understand. If you are to succeed in any industry, you must understand how businesses work, and understanding the jargon is an important component of this.
One such piece of jargon is ‘Return on Investment‘ (ROI). In a nutshell, this means the financial benefit you receive from an investment you make. It’s a measure of what you get back compared with what you put in, and it’s commonly used in the finance world as well as the business one. In business, it’s most frequently used to determine how effective your marketing has been, but that isn’t the only area where ROI can be measured. Another key business investment is equipment and services, and you want to have a favourable ROI in this area too.
With regards to ROI, your primary goal is to generate maximum return for minimal investment; you want to get back more than you put in.
Why is ROI important?
ROI is usually taken over a period of three years in the majority of businesses. This is because statistics show that most new businesses are unlikely to see a return on their investment in less time than this. Calculating your ROI can help you to get an understanding of what’s working and what isn’t – if your marketing or equipment are not generating a profit, then you are losing money. Knowing this would then prompt you to make the necessary changes to improve your ROI, perhaps by ditching something altogether in favour of something new.
An exception to the rule
But what if there were a business where you could start seeing real ROI in significantly less time than that three-year timespan? Hire of robots is one such industry – a business that Hire out robots can see this return much faster, usually within 10 to 14 months. The demand for sophisticated robotic solutions in all manner of industries is swiftly rising, particularly as the number of effective robotic solutions continues its meteoric rise. But many companies are not yet ready to commit to purchasing this equipment themselves, resulting in a demand for robot rentals that mean business opportunities for savvy entrepreneurs to take advantage of.
Getting into the robot hire business does, naturally, require some capital to invest upfront. This capital is required to make the initial investment in the machines that will make up your rental business. You need to target machines for which there is going to be a lot of demand. Robots for factory and warehouse environments are particularly popular, and there is a growing trend towards robotics for the retail sector. Start with a robot that you know there will be a market for, and you can start advertising your rental business to prospective clients who would benefit most from your products. As your portfolio grows, you will know what industries and niches you want to target.
ROI doesn’t have to be some distant target that you have to slog for years to achieve. Robots are among the fastest growing tech equipment in the world, and if you take that first step and invest in a robot to hire out to companies, you could see a return on that investment in less than a year.