Business Management Software

How Profitable Is A Business Management Software? (Updated for 2024)

Pat Walls

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Updated: September 15th, 2024

How Profitable Is A Business Management Software? (Updated for 2024)

So you want to start a business management software?

And the first question that came to your mind was, “well, are business management softwares actually profitable?”

With a market size of $23.3B - there’s plenty of business to go around.

Especially considering:

You could start a business management software with as low as $149
Based on our data, business management softwares generate an average of $20.8M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a business management software.

Let’s dive in!

Is a business management software profitable?

Yes, a business management software is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $20.8M per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your business management software.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your business management software is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a business management software worth it?

If you’re wondering if a business management software is worth it, the answer is a big YES. With business management softwares, you have the potential to earn $20.8M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $23.3B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a business management software to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful business management softwares case studies.

Examples Of Profitable Business Management Softwares

Here are a few examples of profitable business management softwares, and a few more details about them:

1. Madwire ($102M/year)

JB Kellogg, the Co-Founder and Co-CEO of Madwire, came up with the idea for his business while interning at a travel magazine company. After realizing his talent for website design and seeing the potential for helping businesses grow through digital marketing, JB and his father decided to start Madwire and grew it into a company with over 500 employees and $100 million in annual revenue in less than 10 years. Their mission is to help small businesses grow and make a difference in their local communities.

Is it profitable? Yes
How much money it makes: $102M/year

How I Started A $8.5M/Month Company Providing Marketing Solutions To SMBs

Co-founder of Madwire JB Kellogg grew his business from just the two of them in a tiny office to over 500 employees and $100 million in annual revenue in under 10 years, by focusing on exceptional customer service and a multi-channel inbound strategy.

Read this case study

Read by 14,043 founders

2. Wellyx ($720K/year)

Fitness enthusiast and former health club manager Katherine Barlow founded Wellyx in 2015 after struggling to find an effective management tool for her club. Frustrated by existing software limitations, she launched Wellyx, which now generates $60k per month.

Is it profitable? Yes
How much money it makes: $720K/year
How much did it cost to start: $50K

I Built a Fitness Management Software That Makes $60K/Month

Discover how Katherine Barlow co-founded Wellyx, a cloud-based management software for the wellness and fitness industry, which now generates $60k per month and aims to reach $150k by the end of the year, offering an all-in-one solution to streamline operations, simplify bookings, and cut costs for gyms, spas, dance studios, salons, and yoga studios.

Read this case study

Read by 1,686 founders

3. Salonist Software ($1M/year)

Neeraj Gupta, the Managing Director of Shrivra and founder of Salonist, came up with the idea for his business after a salon owner approached his IT services company for help with selling services and booking appointments online. Recognizing the challenges faced by the beauty and wellness industry, Neeraj decided to create a comprehensive software solution that would streamline scheduling processes and improve the customer experience. Since its launch in 2017, Salonist has attracted over 10,000 customers worldwide and continues to grow.

Is it profitable? Yes
How much money it makes: $1M/year
How much did it cost to start: $149

On Creating A Spa And Salon Management Software

Salonist.io is a one-stop software solution for businesses in the health, beauty, and wellness industries, with around 10,000 customers worldwide, offering everything from customer management to Point of Sale, online bookings, multi-location management, marketing, and much more.

Read this case study

Read by 4,571 founders

Learn more about starting a business management software:

Where to start?

-> How much does it cost to start a business management software?
-> Pros and cons of a business management software

Need inspiration?

-> Other business management software success stories
-> Marketing ideas for a business management software

Other resources

How much can you make with a business management software?

With a business management software, you can make an average of $20.8M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $149. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a business management software make a week?

Based on our data, average weekly revenue for a business management software ranges around $434K. As such, you could see monthly revenues of $1.73M.

To know if your business management software achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your business management software.

How much do business management softwares owners make?

The income of a business management software owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established business management software is about $434K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a business management software owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Business Management Software Profit Margins

Generally speaking, a business management software can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a business management software, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, business management software owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, business management software owners can ensure long-term sustainability and profitability for their business.

Business management software owner salary

The salary of a business management software owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established business management software, in a prime position, might see an average weekly salary around the ballpark of $360K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a business management software may be a promising business to start - but the success of your business management software mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable business management software.

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Starting A Business Management Software: Everything You Need To Know

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