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How much profit should a business make?
Profits are hard to come by – Profit ranges from 5 percent for a startup to 20 percent for a mature, established $10 million-plus business.
As a business grows it has to start hiring more people. Each employee in a small business drives the margins lower.
One study found that 90% of all service and manufacturing businesses with more than $700,000 in gross sales are operating at under 10% margins when 15% to 20% is likely ideal.