The basic formula for running a business is to make good on the RIO or Return On Investment. This is a simple calculation done by most business owners and investors. ROI = (net profit before tax / capital and reserves) X 100. Simply put, how much money did I make from the money I put in, expressed as a percentage. It is important to monitor this periodically so that you see your investment grow and your cash flow stay positive.

We came across another formula, ROE or Return On Ego, this week. This is a more complex one and requires some of that soft squishy stuff that accountants would find hard to compute. But simply put, what return you are getting for your hard work as far as ego stroking, appreciation and personal growth is concerned. These are important factors to work in when building a business. We cannot operate on money alone; we all have a deep need to feel loved and important. A company in the US sells an offering that for a small monthly fee, they will call you each day just to tell you how awesome you are. That is great ROE. Use this with your Staff, your Suppliers and most importantly your Customers.

If you have read this: you are an awesome person, have a great day.