3 answers
4
Asked 575 views

If am a business owner, can I invest my own money and make more out of it if I make a profit out of it from a company?

I wanna be able to also make a profit with a product that's already made. #design #art #business #entrepreneur

business art design entrepreneur
Answer This

+25 Karma if successful
From: You
To: Friend
Subject: Career question for you
4

3 answers

1
Updated
Share a link to this answer
Share a link to this answer

John’s Answer

If you want to make money selling a product that already exists (like shirts or soda), then you are a distributor or retailer. Distributors take the product from the manufacturer and distributes it to retail or online stores. If you open a retail store or online store, then you sell directly to consumers and you can sell multiple products. In either case, you will need capital to buy the products you want to sell or distribute. You also need to be able to sell the products otherwise you will not make any money. You only make money when you sell a product. And, it is a small amount of money for each product.

John recommends the following next steps:

Build a spreadsheet that models your business
Determine the products you want to sell
Find out how much the products cost to you (the wholesale price) and how much you see them selling for. The difference is your product profit margin
Determine what expenses you will have other than the cost of the product (e.g., retn, utilities, shipping, advertising, etc.)
Find someone who already sells products to learn from them. No sense starting a business just to lose lots of money.
1
0
Updated
Share a link to this answer
Share a link to this answer

Robert’s Answer

Good answers above. The question is a bit open ended but you are asking about investing your own money as well as if you have a profitable business. This may not be what you are getting at, but if you are talented at investments, you can invest your own personal money that has been paid to you by your company. But this may be in the form of W2 taxed income and then when you invest, you will have to also pay either long or short teem capital gain (using simple equities/stock as an example). However, if you manage your business wisely, instead of pulling out all the profits or income for yourself personally, you can have a corporate brokerage account and invest. This may allow you to expense additional equipment, supplies, real estate, etc. against the company's investment earnings without the personal taxation if you invested in your own brokerage account. Good idea to talk with your tax advisor on the best path to take.
0
0
Updated
Share a link to this answer
Share a link to this answer

Dr. Ronald’s Answer

Hi Javier,
"If" the company profits enough above the personal investment, this permits an option for the company to pay back the personal investment. Remaining profit utilization is discretionary as managed by you, the entrepreneur, relative and accountable to the company. Anything less of a margin not met, is deemed a personal risk toward loss.
Dr. Ronald
0