Management Consulting Business

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

•

Updated: September 19th, 2024

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

So you want to start a management consulting business?

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

With a market size of $242B - there’s plenty of business to go around.

Especially considering:

You could start a management consulting business with as low as $150
Based on our data, management consulting businesses generate an average of $2.18M per year
You could see gross margins as high as 80% with management consulting 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 management consulting business.

Let’s dive in!

Is a management consulting business profitable?

Yes, a management consulting 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 $2.18M per year with an estimated gross margin of 90%, you could expect to recover your investment within 7 months or even less.

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

Is a management consulting business worth it?

If you’re wondering if a management consulting business is worth it, the answer is a big YES. With management consulting businesses, you have the potential to earn $2.18M 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 $242B, 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 management consulting 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 management consulting businesses case studies.

Examples Of Profitable Management Consulting Businesses

Here are a few examples of profitable management consulting businesses, and a few more details about them:

1. The Clover Collective ($600K/year)

After 15 years in high-level corporate roles and hitting burnout in 2015, Heather Lawson-Bradfield launched The Clover Collective, turning her experience into a six-figure operations management agency that oversees $20 million in client portfolios. Today, the company projects $1 million in revenue for 2024, demonstrating her commitment to supporting neurodivergent entrepreneurs and marginalized communities.

Is it profitable? Yes
How much money it makes: $600K/year
How much did it cost to start: $100K

On My Way To 7-Figs Building An Operations Management Agency

This case study follows the journey of Heather Lawson-Bradfield, founder of The Clover Collective, a virtual ops management agency for creatives, as she shares valuable lessons on building a six-figure business, managing client portfolios worth 20 million, and projecting revenue of $1 million in 2024.

Read this case study

Read by 1,205 founders

2. Consulting Success ($2.88M/year)

Michael Zipursky, founder of Consulting Success®, came up with the idea for his business after running and selling several businesses with his cousin Sam. They wanted to create a business that allowed them to work from anywhere and have the freedom to travel. By sharing their expertise and providing valuable content, they built an audience that eventually requested a course and coaching program, leading to the launch of Consulting Success®.

Is it profitable? Yes
How much money it makes: $2.88M/year
How much did it cost to start: $1K

How These Cousins Started A $200K/Month Consultant Training And Coaching Business

Consulting Success® is a 7-figure, highly profitable business that offers courses and coaching programs for consultants looking to start or grow their consulting business, built through iterative content creation and audience validation.

Read this case study

Read by 9,335 founders

3. FVA Business Consultancy ($12K/year)

Julmar Grace Locsin, founder of Filipino Virtual Assistance, came up with the idea after experiencing the challenges of transitioning from office jobs to freelancing. Recognizing the potential for freelancing to improve the lives of individuals and families, Locsin and her husband launched FVA to provide training, coaching, and services to empower freelancers. Since its inception, FVA has trained over 25,000 students and aims to become the top online academy in the world.

Is it profitable? Yes
How much money it makes: $12K/year
How much did it cost to start: $500

On Starting A Business Training Virtual Assistants

Filipino Virtual Assistance by FVA Business Consultancy, founded by Julmar Grace Locsin, offers online and offline training to empower marketers, enable businesses, and equip freelancers which has trained 25,000 students from their 31 courses, has 16 coaches assigned from different territories, and fifteen in the FVA team for global digital leadership that will impact the world through digitalization, one life at a time.

Read this case study

Read by 8,369 founders

Learn more about starting a management consulting business:

Where to start?

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

Need inspiration?

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

Other resources

-> Management consulting business tips

How much can you make with a management consulting business?

With a management consulting business, you can make an average of $2.18M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $150. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a management consulting business make a week?

Based on our data, average weekly revenue for a management consulting business ranges around $45.4K. As such, you could see monthly revenues of $182K.

To know if your management consulting 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 management consulting business.

How much do management consulting businesses owners make?

The income of a management consulting 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 management consulting business is about $45.4K. 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 management consulting business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Management Consulting Business Profit Margins

Generally speaking, a management consulting business can expect profit margin of around 90%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a management consulting 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, management consulting 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, management consulting business owners can ensure long-term sustainability and profitability for their business.

Management consulting business owner salary

The salary of a management consulting 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 management consulting business, in a prime position, might see an average weekly salary around the ballpark of $40.9K.

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

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

Part of

Starting A Management Consulting Business: Everything You Need To Know

‹

›