What would you consider to be a good annual return when investing in a business?

I.e if you invested 拢100,000 in a new business what would you consider to be a good annual net profit for that business in terms of actual figures or as a percentage of the initial investment?

What would be a poor annual return?

You can probably get 7% from a high interest account, so I wouldn't take less than 20% to be worth whike although other factors should be taken into account like growth and risk etc. That is, if I knew the company was gong national in 3 years, would consider taking less profit in year 1 if I was confident years 2 and 3 would be sunstantial.

20 percent is a good start.any single digit return is poor.

Marky & allen are not correct, you cannot expect any new business to make a profit in it's first 3 years, so any return during that period should be minimal.

Also business is not like a saving account, 20%??? if you are expecting 拢20,000 a year off of an initial 拢100,000 investment, don't invest!!!

You have to be realistic, an investment in a new business is a long term project, 5-10% return as a maximum possibly after 2-3 years.

Tags

　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

Related information

How can I join, or create a network of new entrepreneurs/business real estate investors in NJ or NY?

I think using this kind of website is one of ways to create a network. I am interested in being in your network. I don't think you should narrow your network within only NJ and NY. Why don&...

Taking money out of your business for personal use?

Your CPA is going to have the best answer for you. I know you want to get your cash out of the business, but it may be better for you to break off 400-600 dollars to have a CPA start doing at least...

I started a business 3 months ago I invested $10,000.00 to start.?

This is a very tough call to make. The 1st reponder mentioned that your time is a valuable consideration and it is, but you did not mention whether you were paying yourself a salary and if so how ...

Anyone know about any LEGIT online business opportunities?

If you are thinking about selling online, the best way is to have your own business website with all the necessary functions. eBay is getting too price competitive but remains a good way to attract...

How can a business owner with gross sales of $260,000 find an investor to...?

Before you go the VC route you may want to tell your friend to try meeting with medical professionals in the area. You will still need a business plan but you may be able to avoid some of the cost...

I am thinking of investing 10k in sole trader business?

If you are in the UK don't bother. Blair wants us out of our own homes into rented, he wants us out of cars and walking. He wants nobody indipendant. He wants us to be serfs again beholden to ...

What are the advantage of business over investing in the capital market?

Business is always going to be a big step, business is for those who can afford investing not only money but also time into an idea. This is why it is always better to invest into things which you ...

A Few Questions About Business And Investing.?

you need a lot of books to answer all these questions. Perhaps you can start with the book "Rich Dad Poor Dad" just for starters.

...