maximum profits capped at 10%

_bankrupted

sky190176 wrote: »

heres an idea

what if all profits from BTL, selling homes, companies annual profits ect ect

if the max profit allowed to be made from selling anything was capped at 10% after costs, would the country be a better place

ie, a car, made for £5000 including labour and parts, cant be sold for any more than £5500

they still make profit, prices are fairer

Your idea is a variant of communism and has already been proved to have failed.

tomterm8

sky190176 wrote: »

heres an idea

what if all profits from BTL, selling homes, companies annual profits ect ect

if the max profit allowed to be made from selling anything was capped at 10% after costs, would the country be a better place

ie, a car, made for £5000 including labour and parts, cant be sold for any more than £5500

they still make profit, prices are fairer

I can already imagine the Accoutants planning their strategy...

Company A buys widget for £100, sells to company B for £110, to company C for £121, to company Z... to customer for £500. All Companies make no more than 10% profit. Simplez.

Or, alternatively, you offshore the production facility, and just export into britain.

Frankly, 10% margin for a venture capitalist isn't worth it. You can get 5% from an ISA, and only 1 out of every 5 new companies succeed.

silvercar

ad44downey wrote:

sky190176 wrote:

what if all profits from BTL,

Something has got to be done about it alright, donated to charity perhaps.

a charity that provides housing for those displaced by the non-existence of the BTL market?

bumpoowee

Something should be done to reduce the incentive of entering the pseudo-business of BTL for certain, however penalising success in real business will only discourage entrepreneurship and hurt everybody in the long run.

julieq

tomterm8 wrote: »

IFrankly, 10% margin for a venture capitalist isn't worth it. You can get 5% from an ISA, and only 1 out of every 5 new companies succeed.

Depends how long it takes to get the 10%. Get it in a day and that's 3650% a year.

Lots of companies run on 10% margin over costs or less. Growth is the key. A company making 10% net margin but doubling revenue year on year would be a healthy proposition to an investor, venture capitalist or not: in fact a venture capitalist would be more likely to take on marginally profitable or loss making businesses against the prospect of future returns.

tomterm8

julieq wrote: »

Depends how long it takes to get the 10%. Get it in a day and that's 3650% a year.

Lots of companies run on 10% margin over costs or less. Growth is the key. A company making 10% net margin but doubling revenue year on year would be a healthy proposition to an investor, venture capitalist or not: in fact a venture capitalist would be more likely to take on marginally profitable or loss making businesses against the prospect of future returns.

Julie, I agree with everything you said, but my answer assumed the qualifier that we were talking about 10% net margin on an annual basis, because that's what the OP said.