Return on Mission

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Startups generate a return on investment for their investors by measuring how much their business generated funds returned compared to investment.

For the impact space, one can calculate the return on mission.

Here is how to measure the return on mission for your impact startup.

Calculate the overhead-to-program expense ratio.

See how much of the program cost goes to overhead.

Overhead is anything that does not directly drive the cost to produce the product or service.

This should be less than 10% in most cases.

One can calculate return on mission by dividing a financial investment by the amount of producing the product or service.

For example, if an expense is $10K, and the cost of producing a product or service is $1K, then the cost of the expense is 10X.

The objective is to determine how much a business expense compares to the cost of providing a service or product.

This casts expenses in terms of producing the product or service, which frames the expense in mission terms.

Consider calculating the return on mission for your impact startup.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

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