Skills Training Business

How Profitable Is A Skills Training Business? (Updated for 2024)

Pat Walls

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Updated: September 2nd, 2024

How Profitable Is A Skills Training Business? (Updated for 2024)

So you want to start a skills training business?

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

Especially considering:

You could start a skills training business with as low as $109
Based on our data, skills training businesses generate an average of $1.14M per year
You could see gross margins as high as 98% with skills training 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 skills training business.

Let’s dive in!

Is a skills training business profitable?

Yes, a skills training 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 $1.14M per year with an estimated gross margin of 47%, 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 skills training 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 skills training business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a skills training business worth it?

If you’re wondering if a skills training business is worth it, the answer is a big YES. With skills training businesses, you have the potential to earn $1.14M 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 $, 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 skills training 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 skills training businesses case studies.

Examples Of Profitable Skills Training Businesses

Here are a few examples of profitable skills training businesses, and a few more details about them:

1. SquarePlanet ($3.49M/year)

Brian Burkhart, founder of SquarePlanet Presentations & Strategy, came up with the idea for his business after witnessing a top doctor give a painfully boring presentation at a healthcare conference. The wasted time, money, and missed opportunities motivated him to help people improve their presentation skills. With his experience in business communications and a deep understanding of what makes presentations go wrong, he created SquarePlanet to provide consulting, training, and execution services for impactful presentations. The company has since seen consistent and upward revenue growth, working with big brands like Coca-Cola and Google.

Is it profitable? Yes
How much money it makes: $3.49M/year

How I Started A 7 Figure Business Helping People Give Presentations

SquarePlanet Presentations & Strategy is a Phoenix-based business communications firm that helps its clients tell their stories in the most impactful ways possible through meeting creative, brand voice, presentations that matter, engineered delight, speaker training/workshops, and keynote addresses, resulting in consistent and upward trajectory since inception.

Read this case study

Read by 6,352 founders

2. Marketplace SuperHeroes ($4.2M/year)

After getting scammed multiple times while searching for a way to make money online, Stephen realized that selling physical products was the easiest way to get started. He partnered with Robert and built a multi-7-figure business selling branded products on Amazon. This success led to the creation of Marketplace SuperHeroes, an 8-figure online education company that helps people learn how to sell their own products on Amazon.

Is it profitable? Yes
How much money it makes: $4.2M/year

How We Started A $350K/Month Business Training Amazon Sellers

Marketplace SuperHeroes co-founder Stephen Somers shares how he started an online education company that helps people sell their products on Amazon globally from scratch, built an 8-figure coaching and services business, and created a consolidated freight company.

Read this case study

Read by 9,597 founders

3. Frontend Mentor ($360K/year)

Matt Studdert, founder of Frontend Mentor, came up with the idea for his business while teaching a front-end web development course. He noticed that his students often struggled to find professional designs and projects to practice their skills and build their portfolios. This led him to create a platform that provides developers with challenges, designs, and optimized assets, ultimately launching Frontend Mentor.

Is it profitable? Yes
How much money it makes: $360K/year
How much did it cost to start: $8K

We Built A $180K/Year Learn-To-Code Community

Online learning community Frontend Mentor has over 200,000 members, with over 1,500 paid subscribers generating over $15,000 MRR, offering professionally designed challenges to improve front-end coding skills with a freemium business model and a focus on real-life experience.

Read this case study

Read by 12,512 founders

Learn more about starting a skills training business:

Where to start?

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

Need inspiration?

-> Other skills training business success stories
-> Marketing ideas for a skills training business
-> Skills training business slogans
-> Skills training business names

Other resources

-> Skills training business tips

How much can you make with a skills training business?

With a skills training business, you can make an average of $1.14M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $109. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a skills training business make a week?

Based on our data, average weekly revenue for a skills training business ranges around $23.7K. As such, you could see monthly revenues of $94.8K.

To know if your skills training 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 skills training business.

How much do skills training businesses owners make?

The income of a skills training 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 skills training business is about $23.7K. 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 skills training business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Skills Training Business Profit Margins

Generally speaking, a skills training business can expect profit margin of around 47%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a skills training 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, skills training 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, skills training business owners can ensure long-term sustainability and profitability for their business.

Skills training business owner salary

The salary of a skills training 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 skills training business, in a prime position, might see an average weekly salary around the ballpark of $11.1K.

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

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

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Starting A Skills Training Business: Everything You Need To Know

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