How to Cut Costs & Improve ROI with Lease Management Software in Nigeria

Large corporations might enjoy great success with an ROI of 10% or even less. Because small business owners usually have to take more risks, most top business experts advise buyers of typical small companies to look for an ROI between 15 and 30 percent.

How to cut cost and improve ROI in nigeria

What is an acceptable ROI for a business?

What Is a Good ROI?

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation.

Is 50% a good ROI?

Having an ROI of 50% on investment can look good by itself, but there’s the context you need to determine how well the investment has done. It’s 50% now, but if it was 70% a year ago, this may not be the solid investment you think it has been.

What is a good average ROI?

about 7% per year
A good return on investment is generally considered to be about 7% per year. This is the barometer that investors often use based off the historical average return of the S&P 500 after adjusting for inflation.

What does 30% ROI mean?

return on investment
An ROI (return on investment) of 30% means that the profit or gain from an investment is 30%. For example, if the investment cost is $100, the return from investment is $130 – a profit of $30. Tomasz Jedynak, PhD and Arturo Barrantes. Basic ROI. Invested amount.

As a corporate occupier, managing lease portfolios is inevitable, and ensuring they are properly managed is essential. However, a large lease portfolio makes keeping track of all the obligations and deadlines regarding each lease more challenging. Understanding and effectively managing all aspects of a lease is key to ensuring that business is done properly and that financial aspects are monitored. Failing to get deep insights into lease details can cause unnecessary expenses and lack of compliance when it comes to lease accounting standards. Fortunately, lease management software can not only help businesses avoid such situations but it can also provide the necessary tools to reduce unnecessary costs and maximize the return on lease investments. Here’s how lease management software can help you manage your lease portfolio.

Improved Visibility

To best manage a lease and all obligations associated with it, having a deep understanding of all details associated with it is key. This includes everything from critical dates, reports, updates, modifications and terminations, among others. Having all this information in a single, centralized system with easy-access increases visibility and productivity when it comes to tracking leases. This is essential to mitigating risks and staying on top of all important aspects of your leases. Lease management software allows you to access all lease information easily and efficiently, providing you with the assurance that all decisions and actions made regarding a lease are completed in a timely and accurate manner to avoid penalties or additional costs.

Actionable Insights

The best way to determine how to cut costs, reduce risks and even influence revenue is by looking directly at the lease data. Lease management software, by storing all lease information in a single, centralized location, enables easy access and the possibility of turning the available data into actionable insights. Being able to calculate tenancy costs, knowing the risk exposure and understanding the real estate optimization opportunities are essential to saving costs and increasing revenue. As such, you can be sure that all decisions made regarding a lease are based on relevant information to ensure they are effective for your business.

How to cut cost and improve ROI in Nigeria

Improved Analysis

Being able to identify and access all lease information that is valuable to your business to make decisions about the future is essential to reducing costs and improving ROI. As such, being able to analyze your leases and the corresponding terms allows you to make the best decision regarding the future of those leases. Whether it is terminating a lease early, terminating it on time, renewals or even changes to an existing lease, it’s necessary to properly analyze the terms, obligations and special clauses of a lease to determine what the best course of action is regarding that lease. And understanding a lease as much as possible can help in making the best cost-effective decisions for your business. Whether it’s renegotiating a new lease monthly rent, removing costs for unused services and even challenging costs for services not included in the lease term, with lease management software you are in the position of ensuring that any decision made regarding your lease portfolio will reduce costs and improve the
ROI for your business.

Reporting and Compliance

Lease management software is a great tool for your team to use when managing the company’s lease portfolio as it makes reporting and compliance easy and accurate. It allows for everyone responsible to have access to lease information to work together to make cost-effective decisions and strategies. Furthermore, with the help of lease accounting software, companies can become ASC 842 compliant by having the tool that can automatically generate a report according to FASB reporting standards. Companies can be sure that reports are accurately submitted on time and that no extra money was spent on additional resources needed to report leases through the balance sheet.

Reducing costs and improving ROI are some of the main goals for companies as they support the overall success of the business. Fortunately, when it comes to corporate leases, these goals can be supported with the help of tools, like lease management and lease accounting software, which help keep all lease information in a centralized location, enabling those responsible to access it and make the best lease decisions for the company.

How do you calculate ROI for a small business?

ROI is calculated by subtracting the initial value of the investment from the final value of the investment (which equals the net return), then dividing this new number (the net return) by the cost of the investment, and, finally, multiplying it by 100.

What is ROI in Amazon?

ROI is your profit per item divided by how much it cost to buy the item. So if you bought an item for $10 and earned $10 profit, that would be a 100% ROI. If you only earned $2 profit, that would be a 20% ROI.

What is a good marketing ROI?

The rule of thumb for marketing ROI is well typically a 5:1 ratio, with exceptional ROI being considered at around a 10:1 ratio. Anything below a 2:1 ratio is considered not profitable, as the costs to produce and fully distribute goods/services often mean top organizations will break even with their spend and returns.

Chinedu Okeke

Chinedu is the founder of Nigerian Tech. He is a tech enthusiast who has the passion for emerging trends in the tech industry. He is also a professional web content developer.

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