Investment Advisory Business

How Profitable Is An Investment Advisory Business? (Updated for 2024)

Pat Walls

•

Updated: October 6th, 2024

How Profitable Is An Investment Advisory Business? (Updated for 2024)

So you want to start an investment advisory business?

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

Especially considering:

You could start a investment advisory business with as low as $4
Based on our data, investment advisory businesses generate an average of $4.1M per year
You could see gross margins as high as 95% with investment advisory 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 investment advisory business.

Let’s dive in!

Is an investment advisory business profitable?

Yes, an investment advisory 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 $4.1M per year with an estimated gross margin of 25%, you could expect to recover your investment within 9 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your investment advisory 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 investment advisory business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is an investment advisory business worth it?

If you’re wondering if a investment advisory business is worth it, the answer is a big YES. With investment advisory businesses, you have the potential to earn $4.1M 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 investment advisory 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 investment advisory businesses case studies.

Examples Of Profitable Investment Advisory Businesses

Here are a few examples of profitable investment advisory businesses, and a few more details about them:

1. Contrarian Thinking ($3M/year)

Codie Sanchez, the founder of Contrarian Thinking, came up with the idea for her business after experiencing numerous career changes and realizing that money was the key to solving problems. After working in finance and investing, she decided to blend her love for writing, investing, and teaching others to create a company that helps people achieve financial freedom. Through her premium membership community, Contrarian Cashflow, she teaches members how to add more cash-flowing income streams to their portfolios and build the life they have always dreamed of. With over 100,000 newsletter subscribers, a community of 1.5 million people, and a run rate of $3 million this year, Contrarian Thinking is empowering individuals to challenge the status quo and shape their own destinies.

Is it profitable? Yes
How much money it makes: $3M/year
How much did it cost to start: $5K

My Finance Newsletter & Community Hit A $3M Run Rate This Year

Contrarian Thinking is a premium membership community that teaches its 1.5 million members how to implement cash flow strategies to achieve financial freedom, with a current run rate of $3 million and a goal of $50 million ARR in five years.

Read this case study

Read by 6,035 founders

2. FMTM LLC ($614K/year)

In 2018, David Pere started a blog to document his journey as a military real estate investor and improve his writing skills. As the blog gained traction, he expanded it into a full-blown brand, offering free content, courses, and a mastermind group. Since its launch, the mastermind group, priced at $100/month, has attracted 161 members, generating impressive recurring revenue of around $10,000/month.

Is it profitable? Yes
What's the gross margin? 30%
How much money it makes: $614K/year
How much did it cost to start: $15K

How This Former Marine Built The Largest Military Real Estate Investing Community In The World

David Pere built the largest Military Real Estate Investing community, From Military to Millionaire, with over 200 students enrolled in his courses since launch and a War Room REI Mastermind group generating $10,000/month, through consistency in producing engaging content across various platforms and providing a valuable community experience by leveraging his relatability and maintaining a successful moderation strategy.

Read this case study

Read by 2,226 founders

3. Dezan Shira & Associates ($18M/year)

Chris Devonshire-Ellis started Dezan Shira & Associates in Hong Kong in 1992 with very little capital. Despite warnings not to go to China, he saw its potential and moved there to explore business opportunities. Through hard work, strategic networking, and innovative marketing techniques such as distributing pamphlets and utilizing the internet, the business grew to become one of the most influential consulting practices in Asia with 28 offices across the region and a turnover of approximately $20 million per annum.

Is it profitable? Yes
How much money it makes: $18M/year
How much did it cost to start: $2K

How I Started A $1.5M/Month Law, Tax And Compliance Consulting Business With 28 offices in China And The Rest Of Asia

Asian-focused consulting firm Dezan Shira & Associates, founded in Hong Kong in 1992, has expanded to include 28 offices and a client base of several thousand companies with US$20 million in annual turnover, handling about US$8 billion in foreign investment into Asia, by determined hard work and creativity in marketing, billing structure and hiring equity-dependent staff.

Read this case study

Read by 6,877 founders

Learn more about starting an investment advisory business:

Where to start?

-> How much does it cost to start an investment advisory business?
-> Pros and cons of an investment advisory business

Need inspiration?

-> Other investment advisory business success stories
-> Marketing ideas for an investment advisory business
-> Investment advisory business Instagram captions

Other resources

-> Investment advisory business tips

How much can you make with an investment advisory business?

With a investment advisory business, you can make an average of $4.1M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $4. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 9 months.

How much does a investment advisory business make a week?

Based on our data, average weekly revenue for a investment advisory business ranges around $85.5K. As such, you could see monthly revenues of $342K.

To know if your investment advisory 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 investment advisory business.

How much do investment advisory businesses owners make?

The income of an investment advisory 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 investment advisory business is about $85.5K. 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 an investment advisory business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Investment Advisory Business Profit Margins

Generally speaking, an investment advisory business can expect profit margin of around 25%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of an investment advisory 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, investment advisory 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, investment advisory business owners can ensure long-term sustainability and profitability for their business.

Investment advisory business owner salary

The salary of an investment advisory 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 investment advisory business, in a prime position, might see an average weekly salary around the ballpark of $21.4K.

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

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

Part of

Starting An Investment Advisory Business: Everything You Need To Know

‹

›