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Widgey
22-03-2006, 12:47 AM
Just wanting to get your views on this:

If you invested the following amounts into starting up a business, what would you expect the first years profit to be:

a) 10,000
b) 30,000
c) 50,000
d) 80,000
e) 100,000
f) 150,000


All feedback and opinions greatly appreciated.

Paul

openmind
22-03-2006, 01:00 AM
Too open ended to comment really. You could invest 150,000 for a 2% profit or 10,000 for a 500% profit dependent on the product.....

Fixed your spelling as well for you ;)

Widgey
22-03-2006, 01:33 AM
what would you be aiming for though as a target (by end of year two)?

And thanks for the spelling correction.

Paul

Martin
22-03-2006, 01:40 AM
I aim to just cover the cost of living.

The investment could take longer than 1 year to fully realise.

inVue
22-03-2006, 04:13 PM
What I can say is keep the cost down and use the technology available. Virtual office is a good one.

Play!!
22-03-2006, 07:10 PM
I agree with Martin, investments on startups will take longer than a year to see any real return. It's usually 3 years on investments over 100k. I've never invested this type of money but I would be happy to get 300k - 500k back after 3 years on a 100k investment. The answer depends alot of various aspects like the state of the market, the potential of the person you are investing in and the product or service you invest in.

It also depends on the deal you strike I suppose. You could have a percentage of the profits each year to having solid exit strategy, like selling after a few years, for a set percentage.

Also, if you funded the right invention and take a percentage of the royalties you could make millions in a short space of time.

I think the answer to your question will vary greatly from one investment to the other.