Return on Investment

[Jenifer Madson]

ROI: A buzz word of the financial industry, it means “return on investment,” and is definitely something to consider before committing to any venture.

That being said, there are few investments that come with any guaranteed ROI, so how do you choose the ones in which to put your trust?

Some would suggest that you start by researching the investment to calculate reasonable expectations of return based on its past performance. I say you need to back up at least two steps before that one to be sure you're making the soundest decision you can.

Start by analyzing what you can control, which are your expectations and the questions that accompany them. In other words, know exactly what you need in return, and then craft at least five questions to find out if the deal meets those needs.

You see, dear reader, it doesn't matter if we're talking about committing our resources to a business, a stock, or a relationship, we need to manage what we can, which is to clearly know what we want and to be prepared to ask whatever questions necessary to determine if there's a fit.

Take A Minute:
Are you invested in anything that you're unsure of?

Make A Minute:
Determine your expectations for the investment, ask questions to see if there is a fit, and find something new to invest in if there isn't.

Doing the right internal homework ahead of time will dramatically increase your odds of connecting with the right people, places, and things in which to invest.