When considering the potential rate of the return on investment (ROI) on your WSI franchise, it’s important to remember that the ROI of any company is broken up into several types. Returning to a recent article in Entrepreneur magazine, we find a good overview of how to break down the parts of a return on investment into easily-understood categories.

First, there is the return on the monetary portion

This is the lion’s share of most people’s concerns when discussing investments. You sink a lot of money into starting up a business, and you want to be sure that it will pay back out and keep you comfortable. The simplest way to consider it is in terms of percentage. If you invest $50,000 and want a 10 percent annual rate of return, the business will need to pay back $5,000 every year.

Obviously, when someone buys a WSI franchise, he or she wants to make money.

Profitability is the bottom-line factor of anyone’s consideration of starting a small- or medium-sized business; how much money are they going to bring home, and how often?

So it’s crucial that a person understands how to define profitability.

The first way is to consider the return on investment (ROI). Investing $10,000 and getting back $75,000 is a very clear gain. Though again, one must make sure to consider the rate of return with the ROI. Getting that $75,000 over 75 years might not seem as desirable or profitable as getting it over 3 years.