(Mybrotha.COM) - Many entrepreneurs will turn down a business opportunity because the profit margin may seem to be too small. Sometimes, this may be a good reason to walk away. Other times, it may be a reason to jump on board. In many scenarios, a small profit margin can be huge.

Believe it or not, but many Fortune 500 companies have very small profit margins. It's quite common for a major corporation to generate a billion dollars in revenue and net only 20% or 200 million.

Many would say that 20% is too low, but they are focusing more on the fact that 80% of their revenue is lost. First off, the 80% is not lost. It takes money to make money, and the 20% that is left over is still substantial.

Even if a company generated a 10% profit margin, this can still be a lot. For instance, if your company generated $1 million in revenue at a 10% margin rate - you still walk away with $100,000 in profits. That may sound significantly less, but it's a whole lot more profits than most companies ever see.

Remember too that what you pay yourself on payroll can be included amongst your expenses. So your personal income is a surplus to what the company nets, which technically raises a 10% profit margin into 15% or 20% - depending on your personal salary.

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