Legal Consulting Business

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

Pat Walls

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Updated: October 6th, 2024

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

So you want to start a legal consulting business?

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

With a market size of $66B - there’s plenty of business to go around.

Especially considering:

You could start a legal consulting business with as low as $200
Based on our data, legal consulting businesses generate an average of $2.49M per year
You could see gross margins as high as 95% with legal 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 legal consulting business.

Let’s dive in!

Is a legal consulting business profitable?

Yes, a legal 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 $2.49M 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 legal 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 legal consulting business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a legal consulting business worth it?

If you’re wondering if a legal consulting business is worth it, the answer is a big YES. With legal consulting businesses, you have the potential to earn $2.49M 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 $66B, 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 legal 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 legal consulting businesses case studies.

Examples Of Profitable Legal Consulting Businesses

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

1. HMW Law ($3M/year)

Brandon Henderson, the founder of HMW Law, started the business out of his apartment in 2002 with no money. Through a direct mail campaign, sales skills, and a focus on client satisfaction, he built a strong reputation and grew the business into a multi-million dollar-a-year enterprise. Now, he has his sights set on reaching eight figures by 2025 and expanding the firm to other cities in Ohio.

Is it profitable? Yes
How much money it makes: $3M/year
How much did it cost to start: $200

We Are A Multi-Million Dollar Legal Service Business, Giving A Voice To The Bullied

This case study follows the growth from scratch of a Personal Injury and Criminal Defense law firm that started from direct mail campaigns and has now expanded into a multi-million dollar-a-year business with the goal of becoming an 8 figure firm, while maintaining a customer-centric approach and fostering a culture of innovation and excellence.

Read this case study

Read by 6,823 founders

2. Noble Notary & Legal Document Preparers ($180K/year)

Mark and Grace Sias came up with the idea for Noble Notary & Legal Document Preparers when Mark, a critical care nurse, was looking for additional income. He realized he could offer mobile notary services to people who were homebound, generating quick and easy money. They expanded their services to include various legal services and focused on over-delivering to attract and retain customers, including participating in local events, creating YouTube commercials, and building relationships with B2B vendors.

Is it profitable? Yes
How much money it makes: $180K/year
How much did it cost to start: $1K

How This Couple Started A $15K/Month Notary Business

Noble Notary & Legal Document Preparers is a small but highly profitable B2B and B2C notary service business in Port Orange, Florida generating approximately $15,000/month in profits by servicing both mobile and remote online notary, executive real estate closings, apostilles, legal document preparation, fingerprinting, credit repair, and tax preparation while keeping advertising and overhead expenditures extremely low.

Read this case study

Read by 6,179 founders

3. Plug and Law ($360K/year)

Besides the horrible work schedule, she didn’t like helping the “big corporations” make money as a lawyer and wanted to be able to make a difference.

After leaving her day job, she started Plug And Law, a legal tech company helping to fill a huge gap in the market and making legal knowledge more accessible.

Is it profitable? Yes
What's the gross margin? 95%
How much money it makes: $360K/year

How Erika Kullberg Quit a Corporate Job and Built A 30K/Month Digital Business

Erika Kullberg founded Plug and Law, a legal tech company, after gaining popularity on social media, growing her YouTube channel to over 180,000 subscribers, and amassing 5 million TikTok followers in just one month, with her business now making an average of $30K/month and $360K/year.

Read this case study

Read by 865 founders

Learn more about starting a legal consulting business:

Where to start?

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

Need inspiration?

-> Other legal consulting business success stories

Other resources

How much can you make with a legal consulting business?

With a legal consulting business, you can make an average of $2.49M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $200. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a legal consulting business make a week?

Based on our data, average weekly revenue for a legal consulting business ranges around $51.9K. As such, you could see monthly revenues of $208K.

To know if your legal 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 legal consulting business.

How much do legal consulting businesses owners make?

The income of a legal 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 legal consulting business is about $51.9K. 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 legal 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.

Legal Consulting Business Profit Margins

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

Legal consulting business owner salary

The salary of a legal 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 legal consulting business, in a prime position, might see an average weekly salary around the ballpark of $46.7K.

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