Hr Solution Business

How Profitable Is A Hr Solution Business? (Updated for 2024)

Pat Walls

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Updated: September 20th, 2024

How Profitable Is A Hr Solution Business? (Updated for 2024)

So you want to start a hr solution business?

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

With a market size of $25.2B - there’s plenty of business to go around.

Especially considering:

You could start a hr solution business with as low as $50
Based on our data, hr solution businesses generate an average of $3.41M per year
You could see gross margins as high as 99% with hr solution 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 hr solution business.

Let’s dive in!

Is a hr solution business profitable?

Yes, a hr solution 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 $3.41M 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 hr solution 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 hr solution business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a hr solution business worth it?

If you’re wondering if a hr solution business is worth it, the answer is a big YES. With hr solution businesses, you have the potential to earn $3.41M 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 $25.2B, 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 hr solution 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 hr solution businesses case studies.

Examples Of Profitable Hr Solution Businesses

Here are a few examples of profitable hr solution businesses, and a few more details about them:

1. SelectSoftware Reviews ($40.5K/year)

Phil Strazzulla, founder of SelectSoftware, came up with the idea for his business after building a personal brand in the HR space through a weekly whiteboard video series. He realized that HR professionals were struggling to choose the right software for their needs, and saw the opportunity to create an online review site, similar to NerdWallet or WireCutter, for HR software. With organic search traffic growing at 30% per month and revenues hitting $1k per month, SelectSoftware has gained traction in the market.

Is it profitable? Yes
What's the gross margin? 99%
How much money it makes: $40.5K/year
How much did it cost to start: $50

This VC Taught Himself How To Code And Is Bootstrapping His Own Startup

VC-turned-entrepreneur Phil Strazzulla, who previously built a successful b2b SaaS business, shares how he bootstrapped an online review site for HR software into a viable business with over $1k monthly revenues in just 3 months through organic search traffic growth and selling high intent leads.

Read this case study

Read by 17,629 founders

2. Techintern.io ($180K/year)

Kingsong, the CEO of Techintern.io, came up with the idea for his business after noticing the high demand for tech talent at startups and the pause in internships at large tech companies during the pandemic. He saw an opportunity to connect startups with skilled developers who had lost their internships, and decided to build a web application to streamline the process. Through their successful launch on Product Hunt and word-of-mouth referrals, Techintern.io has been able to attract and retain customers, and is currently profitable and expanding their marketing efforts.

Is it profitable? Yes
How much money it makes: $180K/year
How much did it cost to start: $40K

Making $15K/Month Connecting Interns With Companies Looking For Talent

Techintern.io connects startups and tech companies with the best software developer students at colleges across North America and has achieved #1 Product of the Day and #2 Product of the Week on Product Hunt, making $15,000 per month.

Read this case study

Read by 7,585 founders

3. Workology ($12.2M/year)

Jessica Miller-Merrell came up with the idea for Workology after using free online dating websites to source candidates for job openings while working as an HR leader. She saw the potential for digital sourcing and recruiting through platforms like LinkedIn, MySpace, and Facebook, and started a job search blog to share tips and build a candidate pipeline. Workology has since become a leading HR and recruiting resource, with a website reaching half a million HR and Recruiting leaders each month, a podcast, and a training and development platform called LEARN by Workology.

Is it profitable? Yes
How much money it makes: $12.2M/year
How much did it cost to start: $12K

This Solo-Female Founder Makes $12M/Year Selling Workplace Resources & Tools

This case study follows the journey of Jessica Miller-Merrell, a top 50 social media influencer according to Forbes, who founded Workology, a workplace HR resource that reaches half a million HR and recruiting leaders each month with 8,000+ published articles and resources, generating $12M in annual revenue, offering on-demand courses for HR certification and career development, providing Ace the HR Exam, Upskill HR, and HRCI recertification courses, and developing a proprietary learning system with LEARN by Workology, which has trained nearly 15,000 HR leaders.

Read this case study

Read by 5,597 founders

Learn more about starting a hr solution business:

Where to start?

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

Need inspiration?

-> Other hr solution business success stories
-> Marketing ideas for a hr solution business

Other resources

-> Hr solution business tips
-> Blog post ideas for a hr solution business

How much can you make with a hr solution business?

With a hr solution business, you can make an average of $3.41M 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 hr solution business make a week?

Based on our data, average weekly revenue for a hr solution business ranges around $71K. As such, you could see monthly revenues of $284K.

To know if your hr solution 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 hr solution business.

How much do hr solution businesses owners make?

The income of a hr solution 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 hr solution business is about $71K. 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 hr solution business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Hr Solution Business Profit Margins

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

Hr solution business owner salary

The salary of a hr solution 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 hr solution business, in a prime position, might see an average weekly salary around the ballpark of $63.9K.

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

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

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Starting A Hr Solution Business: Everything You Need To Know

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