Return on Investment

Discussion in 'Growing and Managing a Business' started by jbtncrt2000, May 26, 2010.

  1. jbtncrt2000

    jbtncrt2000
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    I have a general question. If I invest approximately $1000.00 in a business, what should be my return on investment?
     
  2. Fergal

    Fergal
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    Welcome to our Business Forum jbtncrt2000, thanks for joining. It's difficult to answer your question without knowing what type of business you are investing in, or the risk associated with that business. The higher the risk, generally the higher the return you should expect.

    Many website based businesses sell for 10 to 20 times their monthly profit. So if the business is a website you could be expecting a return of between $50 and $100 per month. If it's a traditional bricks and mortar business the return is likely to be less. Some investors look for returns of about 25% per annum, which would equate to $250 per year on a $1,000 investment.

    Can you tell us a little more about the business concerned - obviously we understand if you'd prefer to keep it confidential at this time?
     
  3. seanstevens

    seanstevens
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    Also, whilst $1K may sound a lot of money, depending on the type of business this could be a tiny amount. Some of it will depend on investment coming from others also. Your $1K could end up representing just 1% of all investment and therefore any returns would be minimal..
     

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