The return on investment has to be the parameter to measure how desirable or not to invest in a particular business, and we must also serve to assess their annual performance.
The rule is clear: if a business does not give us a higher throughput can be obtained by investing in a low-risk financial instrument and not doing anything, business is business.
This is the main cause that makes a country with low interest rates for savings, create many new business. The opposite happens in countries with high interest rates, where almost no new businesses, especially small and medium sizes.
That is, if you will not earn much money in the bank, the best you can do is start a business, where it will increase your chances of profit.
The entrepreneur who is willing to risk their money or their business partners, has to be clear about two basic principles: the money is invested to winning, and yields almost always go hand in hand with the level of risk assume (a higher risk, higher performance). In this area, the worst combination you can find is high risk and low return. Sometimes the entrepreneur, driven by his enthusiasm, not enough to clearly identify this point.
The expected return on investment can easily be compared with other investment options. In analyzing the results can take the decision to participate or not in the business.