Tech Support Business

How Profitable Is A Tech Support Business? (Updated for 2024)

Pat Walls

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Updated: September 2nd, 2024

How Profitable Is A Tech Support Business? (Updated for 2024)

So you want to start a tech support business?

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

Especially considering:

You could start a tech support business with as low as $99
Based on our data, tech support businesses generate an average of $1.88M per year
You could see gross margins as high as 80% with tech support 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 tech support business.

Let’s dive in!

Is a tech support business profitable?

Yes, a tech support 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 $1.88M per year with an estimated gross margin of 54%, you could expect to recover your investment within 11 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your tech support 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 tech support business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a tech support business worth it?

If you’re wondering if a tech support business is worth it, the answer is a big YES. With tech support businesses, you have the potential to earn $1.88M 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 tech support 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 tech support businesses case studies.

Examples Of Profitable Tech Support Businesses

Here are a few examples of profitable tech support businesses, and a few more details about them:

1. 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 6,808 founders

2. Artificial Workflow ($120K/year)

Andrew and his co-founder James started Artificial Workflow after noticing consultants, like James at EY, were drowning in manual data processing. Initially offering bespoke AI consulting, they pivoted to a SaaS model, now generating $10,000 in monthly recurring revenue, largely from $299/month enterprise clients.

Is it profitable? Yes
What's the gross margin? 80%
How much money it makes: $120K/year
How much did it cost to start: $50K

We Created AI Tools For Consultants And Make $10K/Mo

Case study of a co-founder who transitioned from bespoke AI consulting to a subscription-based platform, generating $10,000 in monthly recurring revenue with 80% from $299/month enterprise clients, through strategies like LinkedIn outreach, SEO, and email marketing, learning costly lessons about starting with quality development.

Read this case study

Read by 553 founders

3. Instatus ($288K/year)

Came up with the idea because people were already paying for similar types of products. It seemed like a zero-risk idea because the MVP was easy to build.

Is it profitable? Yes
How much money it makes: $288K/year
How much did it cost to start: $2K

I Quit My 9-5 Job And Built A Profitable SaaS Tool

Egyptian software developer Ali Salah shares how he quit his 9-5 job and created Instatus, a service for creating status pages that has grown from $200-300/mo to $2K MRR, attracting around 111 paying medium-to-large-sized clients through branding, pricing, and customer support strategies, as well as using Google Ads, while also providing tips on launching a product and building a business.

Read this case study

Read by 6,283 founders

Learn more about starting a tech support business:

Where to start?

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

Need inspiration?

-> Other tech support business success stories
-> Marketing ideas for a tech support business
-> Tech support business names

Other resources

-> Tech support business tips

How much can you make with a tech support business?

With a tech support business, you can make an average of $1.88M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $99. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 11 months.

How much does a tech support business make a week?

Based on our data, average weekly revenue for a tech support business ranges around $39.5K. As such, you could see monthly revenues of $158K.

To know if your tech support 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 tech support business.

How much do tech support businesses owners make?

The income of a tech support 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 tech support business is about $39.5K. 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 tech support business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Tech Support Business Profit Margins

Generally speaking, a tech support business can expect profit margin of around 54%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a tech support 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, tech support 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, tech support business owners can ensure long-term sustainability and profitability for their business.

Tech support business owner salary

The salary of a tech support 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 tech support business, in a prime position, might see an average weekly salary around the ballpark of $21.4K.

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

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

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Starting A Tech Support Business: Everything You Need To Know

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