Question: I'm a 35 year old ambitious young man earning thirty five thousand dollars per year. I'm at the highest position in my field. My wife, who is also working, and I have saved $150,000 over the years. We live in our own home, which is almost paid up. I'm looking for a business in which I can grow and be independent. How much return can I expect on an investment of $150,000? Answer: From our more than twenty five years experience in business consulting we can state that if you are able to get into the business best suited for you, with an investment of $150,000 you should expect a net profit of approximately $100,000 per year for the next five years after paying your mortgage expenses. After five years, when the mortgage is paid off, your net income should increase by approximately $50,000. This is without improving the business, and if it was operated at the same level as when you bought it. The type of business that would fit into this description is one in existence for at least 15 or possibly 30 years, or in brokerage terms, an established business. Your earnings would be 75% on your initial down payment for the first year alone, and every year after that, if not more. You will recoup your initial investment of $150,000 within a year and a half. It may be hard to believe, but if it is done correctly, it works. For a business to earn, before debt service, $150,000, (which means paying back a mortgage of approximately $50,000), its price should be not more than three times the net earnings (profit). In other words, the price of a business that earns $150,000 net profit per year should not be bought for more than $450,000 - total price, with a $ 150,000 down payment. The balance would be paid to the seller who will hold a mortgage for 5 to 7 years at 8% to 10% interest. The basic problem is to find the right business, at the right price, that is really making the level of profit as represented to the seller. Beware of business brokers or business consultants who take fees up front, which can range from $5,000 to $20,000. Do not pay any fees before observing first-hand what the business is capable of earning.