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1. Industry Benchmarks: One of the most common ways to determine a normal profit margin is to look at industry benchmarks. Different industries have different average profit margins. For instance, the software industry might have higher average profit margins than the grocery industry due to differences in cost structures and pricing power. Industry reports, financial news outlets, and business databases can provide this information.
2. Historical Performance: A company's historical performance can provide insight into what constitutes a normal profit margin for that company. By looking at the profit margins achieved in past years, one can get a sense of what might be expected in a typical year.
3. Peer Comparison: Comparing a company's profit margin to those of its direct competitors can also provide a sense of what might be considered normal. If a company's profit margin is significantly higher or lower than its peers, it might be worth investigating why.
4. Economic Conditions: Economic conditions can also impact what is considered a normal profit margin. For example, in a strong economy, companies might be able to charge higher prices and achieve higher profit margins. In a weak economy, the opposite might be true.
5. Company's Strategic Goals: A company's strategic goals and pricing strategy can also influence its normal profit margin. For example, a company might accept lower profit margins if it is trying to gain market share.
6. Data Analytics: Companies can use data analytics to track historical trends in profit margins at the product level to establish their estimate of a normal profit margin.

Various Business operations: 

· Low risk 5%

· Medium risk 10%

· High Risk 15%

Investments: 

· Low risk 4 – 6%

· High risk 8 – 10%