Graphic Design Business

How Profitable Is A Graphic Design Business? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Graphic Design Business? (Updated for 2024)

So you want to start a graphic design business?

And the first question that came to your mind was, “well, are graphic design businesses actually profitable?”

Especially considering:

You could start a graphic design business with as low as $30
Based on our data, graphic design businesses generate an average of $2.05M per year
You could see gross margins as high as 70% with graphic design businesses

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 graphic design business.

Let’s dive in!

Is a graphic design business profitable?

Yes, a graphic design business 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 $2.05M per year with an estimated gross margin of 50%, you could expect to recover your investment within 10 months or even less.

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

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 graphic design business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a graphic design business worth it?

If you’re wondering if a graphic design business is worth it, the answer is a big YES. With graphic design businesses, you have the potential to earn $2.05M 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 $, 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 graphic design business 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 graphic design businesses case studies.

Examples Of Profitable Graphic Design Businesses

Here are a few examples of profitable graphic design businesses, and a few more details about them:

1. Above 8000 Creative ($120K/year)

Mimi and Delaney, the founders of Above 8000 Creative, came up with the idea for their business after realizing the demand for affordable and high-quality branding services for small businesses. They used their experience in graphic design, photography, and content creation to offer a full-service creative agency, helping other businesses stand out in their industries. With word-of-mouth referrals and targeted outreach on platforms like Instagram, they have successfully attracted and retained clients, leading to profitability and future growth.

Is it profitable? Yes
How much money it makes: $120K/year

How We Went From Side Hustle To Profitable Agency

Above 8000 Creative is a successful creative agency started as a side hustle by a husband and wife team, specializing in graphic design, website design, photography, content creation, and Instagram marketing, and has grown to include many clients and services due to word of mouth referrals.

Read this case study

Read by 5,377 founders

2. Draftss ($180K/year)

Junaid Ansari and Amin Memon co-founded Draftss.com, a productized graphic design and frontend code service. They started by providing graphic design services and later added frontend coding to their list of offerings based on customer requests. In 2019, they made $66,000 in annual recurring revenue (ARR), and as of July 2020, they hit $9.6k in monthly recurring revenue (MRR). Their focus is on automation and improving their service to retain customers and scale their business.

Is it profitable? Yes
How much money it makes: $180K/year
How much did it cost to start: $100

How We Make $7.5K/Month With A Productized Service

Draftss.com is a productized graphic design and front-end code service on subscription that made $66k ARR in 2019, has an MRR of $9.6k as of July 2020, and offers add-ons such as designers being added to team in interacting tools and front-end code services on WordPress using various page builders like Elementor and Divi.

Read this case study

Read by 12,342 founders

3. caddesignhelp.com ($96K/year)

CADdesignhelp.com was started by Scott Tarcy, a mechanical engineer who wanted more control over his schedule and life. After reading "The 4-Hour Workweek" and "The $100 Startup," Scott decided to turn his skills in CAD and product design into a business. He started by networking and providing CAD design services, eventually expanding into selling his own products online. Today, the business averages $9,000 a month in revenue with over 200 clients per year.

Is it profitable? Yes
How much money it makes: $96K/year
How much did it cost to start: $15K

How I Left My Job To Start A $9K/Month CAD Design Business

A 3D CAD designer and product inventor who started as a side hustle and averaged $9,000 a month in revenue, shares his insights on the ups and downs of owning a service-based business alongside an eCommerce store, as well as lessons learned in customer acquisition and in generating multiple streams of passive income.

Read this case study

Read by 20,227 founders

Learn more about starting a graphic design business:

Where to start?

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

Need inspiration?

-> Other graphic design business success stories
-> Marketing ideas for a graphic design business
-> Graphic design business slogans
-> Graphic design business names
-> Graphic design business Instagram bios

Other resources

-> Graphic design business tips
-> Blog post ideas for a graphic design business
-> Graphic design business quotes

How much can you make with a graphic design business?

With a graphic design business, you can make an average of $2.05M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $30. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a graphic design business make a week?

Based on our data, average weekly revenue for a graphic design business ranges around $42.6K. As such, you could see monthly revenues of $171K.

To know if your graphic design business 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 graphic design business.

How much do graphic design businesses owners make?

The income of a graphic design business 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 graphic design business is about $42.6K. 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 graphic design business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Graphic Design Business Profit Margins

Generally speaking, a graphic design business can expect profit margin of around 50%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a graphic design business, 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, graphic design business 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, graphic design business owners can ensure long-term sustainability and profitability for their business.

Graphic design business owner salary

The salary of a graphic design business 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 graphic design business, in a prime position, might see an average weekly salary around the ballpark of $21.3K.

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 graphic design business may be a promising business to start - but the success of your graphic design business mostly depends on your effort and your approach.

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

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Starting A Graphic Design Business: Everything You Need To Know

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