How do you know which ones are worth it?
We recommend you to think in terms of return on investment – the revenue you get from implementing a tactic should be higher than the costs you need to support to get the job done. This is the return on investment formula, a simple and effective tool that any entrepreneur should use:
Return on investment = (Gain from investment-Cost of investment) _______________________________________________________________________________________
(Cost of investment)
When the value you obtain is positive (higher than 0) it is recommended to make the investment. Of course, you’ll want to achieve higher values instead of barely surpassing 0.
This formula can be applied for any type of activity you decide to perform, from email marketing to developing health programs for your employees.
A trap that many business owners fall into is hurrying to see results immediately. With training, it may take months to notice the first positive outcomes in terms of productivity and profit, but benefits are long-term and manifold: higher employee retention and lower costs associated with recruiting new people, increased workplace satisfaction and staff loyalty, and cultivating innovation and excellence in your company.
Training outcomes are not always easy to quantify exactly, but a savvy entrepreneur will notice them at the glance of an eye!