The benefits of investing early in a Private Corporation in Canada can be an extremely lucrative return. It is possible to achieve very impressive returns of 10-20X return IF invested in a successful Company (even higher if you invest in the “next Apple”) . The obvious downside is you can loose everything.

When deciding on an investment, research the market, calculate the growth potential of that market. What is the typical profit margin of other similar products. Compare to the size and profitability of other Companies in that market. Then research the market some more…

I suggest you do 3 scenarios, Poor, Average and Excellent. We will start with average. Based on your exhaustive research, calculate the profitability based on the average performance of similar product/Company in the market. Re-do your calculations based on the market leader and a successful product introduction this is your best case scenario. For the worst case you can research a dud NPI, or subtract 50% from the average case numbers.

If it appears even a worst case scenario could still be slightly profitable, this your the best bet for picking the next Apple.

Good Luck!