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How much of the profits should an investor recieve from a small business?


Profits from a sale and not after but before company pays taxes, insurance, paying employees etc.

Please assume the business will be a profitable one. What is the fair range percentagewise? 10% of profit? more. Recognizing the business must grow and pay bills.

You would not be entitled to "profits" from gross revenue.

Profits are derived AFTER all the bills have been paid, not before.

The amount would vary widely based on how much you invested, how profitable the business is, and the agreement forged with the owners.

Keep in mind nearly 60% of new small businessed fail in the first 5 years. Investing in businesses is a HUGE risk

And when times are tough, the owners won't be taking a paycheck and the investors would not get any return on their investments.

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