Business Consultant

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

Pat Walls

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Updated: October 9th, 2024

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

So you want to start a business consultant?

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

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

Especially considering:

You could start a business consultant with as low as $25
Based on our data, business consultants generate an average of $2.46M per year
You could see gross margins as high as 96% with business consultants

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 consultant.

Let’s dive in!

Is a business consultant profitable?

Yes, a business consultant 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 $2.46M 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 consultant.

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

Is a business consultant worth it?

If you’re wondering if a business consultant is worth it, the answer is a big YES. With business consultants, you have the potential to earn $2.46M 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 business consultant 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 consultants case studies.

Examples Of Profitable Business Consultants

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

1. The Pedowitz Group ($18M/year)

Jeff and Cherie started The Pedowitz Group in 2007, leveraging their expertise in sales and marketing. They saw an opportunity to provide consulting services in the digital marketing space and quickly gained momentum through word-of-mouth and industry referrals. Today, they have achieved over $20 million in annual revenue and continue to focus on growth and providing excellent service to their clients.

Is it profitable? Yes
How much money it makes: $18M/year
How much did it cost to start: $500

How This Couple Started A $20M/Year Sales And Marketing Consulting Firm

Pedowitz Group, a $20M+ consulting agency, shares the story of how they grew their business by prioritizing customer retention/loyalty, being platform-agnostic, and focusing on strong results aligned with clients' key business objectives.

Read this case study

Read by 4,360 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 1,034 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 2,050 founders

Learn more about starting a business consultant:

Where to start?

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

Need inspiration?

-> Other business consultant success stories

Other resources

-> Business consultant tips

How much can you make with a business consultant?

With a business consultant, you can make an average of $2.46M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $25. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a business consultant make a week?

Based on our data, average weekly revenue for a business consultant ranges around $51.2K. As such, you could see monthly revenues of $205K.

To know if your business consultant 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 consultant.

How much do business consultants owners make?

The income of a business consultant 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 consultant is about $51.2K. 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 consultant owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Business Consultant Profit Margins

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

Business consultant owner salary

The salary of a business consultant 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 consultant, in a prime position, might see an average weekly salary around the ballpark of $46K.

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

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

Part of

Becoming A Business Consultant: Everything You Need To Know

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