As you company grows, you will need to invest a good deal of the revenue that you take in to keep operations from falling into complacency. In order to get a good idea what investments would be most advantageous, doing a proactive ROI analysis of project you plan to undertake can put your business in a position to be able to properly anticipate every aspect of a successful project. Let’s take a look at the variables of an ROI analysis.
The first thing you will want to do is gather the receipts and create a detailed cost analysis of the project, breaking the costs down into separate categories. The category breakdown will be advantageous when you start to assess the different costs, and how those investments make a huge difference when trying to determine the viability of a project.
To configure this, you will want to start with the single-project costs. These include:
Once the costs have been firmly reported, it is time to start looking at the potential benefits of the proposed projects.
Since we are only looking at calculating the ROI of a particular investment, we should talk about how your IT investments may benefit your company. They include:
The equation to calculate the return on investment for your technology is the same as it would be for any other investment:
All you need to do is take your total benefit (calculated by subtracting your costs from your ultimate gains) and divide it by your total costs. This gives you a simple metric that makes your benefits easy to understand, and thereby enables you to make comparisons much more easily.
You should also keep a few other qualifications in mind as you plan your next IT investments.
Evolution Networks can help you decide what your best moves are concerning your information technology. Reach out to us at 954-866-1600 to learn more.
Evolution Networks has been serving the South Florida area since 2003, providing IT Support such as technical helpdesk support, computer support, and consulting to small and medium-sized businesses. It's always been our goal to provide enterprise-level IT practices and solutions to the small business sector, with small business prices. Our experience has allowed us to build and develop the infrastructure needed to keep our prices affordable and our clients up and running.
We partner with many types of businesses in the area, and strive to eliminate IT issues before they cause expensive downtime, so you can continue to drive your business forward. Our dedicated staff loves seeing our clients succeed. Your success is our success, and as you grow, we grow.