Business Advisory

How Profitable Is A Business Advisory? (Updated for 2024)

Pat Walls

•

Updated: September 11th, 2024

How Profitable Is A Business Advisory? (Updated for 2024)

So you want to start a business advisory?

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

With a market size of $522B - there’s plenty of business to go around.

Especially considering:

You could start a business advisory with as low as $500
Based on our data, business advisories generate an average of $4.61M per year
You could see gross margins as high as 93% with business advisories

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 advisory.

Let’s dive in!

Is a business advisory profitable?

Yes, a business advisory 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 $4.61M 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 business advisory.

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

Is a business advisory worth it?

If you’re wondering if a business advisory is worth it, the answer is a big YES. With business advisories, you have the potential to earn $4.61M 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 $522B, 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 advisory 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 advisories case studies.

Examples Of Profitable Business Advisories

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

1. moonwater ($363K/year)

After taking a 40% pay cut to escape management consulting, Mike spent a decade in startups before founding moonwater, now averaging $30K+/month in revenue with a 93% margin by helping high-potential startups grow faster and more efficiently.

Is it profitable? Yes
What's the gross margin? 93%
How much money it makes: $363K/year
How much did it cost to start: $500

My Startup Consulting Solopreneur Business Makes $30K/Month

Case study: How a former management consultant started his own growth studio, moonwater, and achieved average monthly revenue of $30K+ with a 93% margin by offering growth audits, advisory services, and fractional operating to 7 & 8-figure startups.

Read this case study

Read by 999 founders

2. 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 6,828 founders

3. Spreadtheworld ($24K/year)

Xavier Coiffard, a developer turned solo entrepreneur, came up with the idea for his business, Spreadtheworld, after struggling to find online places to post his startup. He curated a list of 100 places and shared it on Reddit and IndieHackers, which gained significant traction. This led him to create a product, and from there, he launched several other successful ventures following a similar approach.

Is it profitable? Yes
How much money it makes: $24K/year
How much did it cost to start: $0

How I Created A $2K/Month Startup Marketing Database Using No-Code Tools

Learn how Xavier Coiffard generated $2000 per month in revenue by building 4 products in 4 months with no-code tools like Carrd, Airtable, Gumroad, and Zapier, as well as how he soft launched his products on Twitter and iterated on his launch strategy.

Read this case study

Read by 4,349 founders

Learn more about starting a business advisory:

Where to start?

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

Need inspiration?

-> Other business advisory success stories
-> Marketing ideas for a business advisory

Other resources

How much can you make with a business advisory?

With a business advisory, you can make an average of $4.61M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $500. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a business advisory make a week?

Based on our data, average weekly revenue for a business advisory ranges around $96.1K. As such, you could see monthly revenues of $384K.

To know if your business advisory 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 advisory.

How much do business advisories owners make?

The income of a business advisory 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 advisory is about $96.1K. 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 advisory owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Business Advisory Profit Margins

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

Business advisory owner salary

The salary of a business advisory 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 advisory, in a prime position, might see an average weekly salary around the ballpark of $86.5K.

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

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

Part of

Starting A Business Advisory: Everything You Need To Know

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