Startup Consulting Business

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

Pat Walls

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Updated: September 19th, 2024

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

So you want to start a startup consulting business?

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

With a market size of $250B - there’s plenty of business to go around.

Especially considering:

You could start a startup consulting business with as low as $50
Based on our data, startup consulting businesses generate an average of $1.22M per year
You could see gross margins as high as 93% with startup 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 startup consulting business.

Let’s dive in!

Is a startup consulting business profitable?

Yes, a startup 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 $1.22M 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 startup 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 startup consulting business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a startup consulting business worth it?

If you’re wondering if a startup consulting business is worth it, the answer is a big YES. With startup consulting businesses, you have the potential to earn $1.22M 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 $250B, 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 startup 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 startup consulting businesses case studies.

Examples Of Profitable Startup Consulting Businesses

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

1. The Smart Passive Income Blog ($1.5M/year)

Pat started the Smart Passive Income blog after being laid off from his architecture job in 2008. He created a website to help people pass the LEED exam, which unexpectedly attracted thousands of visitors daily. Encouraged by positive feedback and initial ebook sales, he launched Smart Passive Income to share his entrepreneurial journey and insights.

That first month, I made $7,008.55. That was just life-changing for me. I was so excited I wanted to share how it all happened and what I had learned, so I created SmartPassiveIncome.com that same month. — Pat Flynn (Source)

Is it profitable? Yes
How much money it makes: $1.5M/year

How Pat Flynn Built A Six Figure Smart Passive Income Business

Pat Flynn's Smart Passive Income Blog generates $125K/month on average, with $1.5M/year in revenue since its inception in 2008, offering guidance for those seeking to transition from traditional jobs to online businesses generating passive income.

Read this case study

Read by 369 founders

2. The Profit Finder ($168K/year)

Disillusioned by repeated failures from hired marketing experts, Brian Carmody tripled his company's revenue and expanded from 1 to 48 states by employing his own strategies. This sparked the idea for The Profit Finders, now generating up to $15k monthly.

Is it profitable? Yes
What's the gross margin? 74%
How much money it makes: $168K/year
How much did it cost to start: $3K

I Help Founders Add $100K+ to Their Business While Earning $15K/Month

Case Study: Founder of The Profit Finders tripled revenue, expanded to 48 states, and lowered break-even by 70%, using specific strategies and a proprietary software built on 1 billion weighted algorithms.

Read this case study

Read by 993 founders

3. Minor Workshop ($1.44M/year)

Paul discovered his business idea while working at an e-commerce company in 2012, where he transformed team efficiency using Asana, leading to a validating bonus from his employer. This insight into productivity tools eventually grew into a consulting business that now generates $90,000 monthly.

Is it profitable? Yes
What's the gross margin? 70%
How much money it makes: $1.44M/year
How much did it cost to start: $500

How I Started A $1M/Year Productivity Consulting Business

This case study article showcases the success story of Paul, who built a profitable consulting business focused on Asana and Pipedrive, generating around $90,000 in monthly sales from consulting and subscription fees, with a margin of 80% and a customer base ranging from solo operators to big enterprise clients.

Read this case study

Read by 1,977 founders

Learn more about starting a startup consulting business:

Where to start?

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

Need inspiration?

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

Other resources

How much can you make with a startup consulting business?

With a startup consulting business, you can make an average of $1.22M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $50. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a startup consulting business make a week?

Based on our data, average weekly revenue for a startup consulting business ranges around $25.5K. As such, you could see monthly revenues of $102K.

To know if your startup 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 startup consulting business.

How much do startup consulting businesses owners make?

The income of a startup 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 startup consulting business is about $25.5K. 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 a startup 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.

Startup Consulting Business Profit Margins

Generally speaking, a startup 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 startup 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, startup 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, startup consulting business owners can ensure long-term sustainability and profitability for their business.

Startup consulting business owner salary

The salary of a startup 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 startup consulting business, in a prime position, might see an average weekly salary around the ballpark of $22.9K.

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 startup consulting business may be a promising business to start - but the success of your startup 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 startup consulting business.

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Starting A Startup Consulting Business: Everything You Need To Know

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