30% return on investment under management is very loose benchmark for a business. Of course returns can be much higher but you have to weigh up the risks associated with business ownership when compared to the more static type investments such as property and shares. Industry knowledge can go a long way when it comes to consideration of your risk profile. There are often some great buys to be found with even a minimal amount of research when it comes to buying a business. The small business under about 100k can often be a case of simply buying yourself a job but as you scale upwards returns can get much higher. The higher risks associted with business means that finance can be difficult when compared to real estate. Banks are not always open to buying a business for clients and will often demand 100% security. Certain franchise opportunities make the banks feel more at ease but it's not bad advise to seek the advice of someone with business lending experience if your going down this path.

yeah
if thats from real estate
its a pretty good return!!

30% is not for real estate holding is it?
It would be a great deal if it was...

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30% return after paying all wages and fixed costs. That is the rule of thumb on the business selling in our area between say 150k to 1m - Of course there is a lot of variation when you look at a business so the rule needs to flex quite a lot. One of our brokers sold a mop and broom for 45k not so long ago and on paper it was a pretty good deal..

Interesting. Thanks for your wonderful advice. I will use it if I start my own biz eventually!

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