what is the ideal profit margin percentage for a business that is competitive but good for growth?

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MR.NICE

what is the ideal profit margin percentage for a business that is competitive but good for growth?

what is the minimum profit margin that should be acceptible in a business? how much should go back into the company and how much should become owners equity? stated in percentages

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Russ:

I suggest ,rather than ask questions piecemeal here, you go back a do your homework- research business plans- contact the SBA and SCORE.

Ishleen:

Too many unknowns here. Small Corporation or Proprietor? Check with a CPA first. Next seek an attorney for your contract needs in accordance with your own state law as well as any state that you plan to do business. The IRS in conjunction with your local state tax association hold local seminars that are free for small business owners. They also issue amnesty for that meeting and will help you in case you have messed up. Check it out. God Bless.

Globally Interested:

It varies among the different types of businesses. Go to the following web site:
http://finance.yahoo.com/q/ks?s=MSFT
From there you can compare the margins between a company and it's competitors.

The better margins usually indicate the better management.

The profit that goes into the company is owners equity. Per share equity is total assets minus total liabilities divided by the number of outstanding shares.

S. Will:

33%

JAYANTH:

For any business the minimum profit (I assume you mean Nett not Gross?) needs to be one that allows the owner(s) of the business (that can be anyone from a sole-trader all the way through to a large corporations with millions of shareholders) to make sufficient return that they are still enthusiastic about the business and want to continue trading - but also build a sufficient reserve to safeguard against business volatility. The comments made in the other replies to this question are all true - you need business plans, research, etc. but I believe that if the owners are not "happy" with the return they are making - that is the start of the end!! Good Luck!!

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