Business Idea

Start A Product Development Consulting Business

About

Starting a product development consulting business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell product development consulting, or selling product development consulting online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$8.6B
starting costs
$20.9K
gross margin
75%
avg product price
$70
time to build
7 months
growth
Organic social media
time investment
Full time
work from home?
Yes

About

Starting a product development consulting business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell product development consulting, or selling product development consulting online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$8.6B
starting costs
$20.9K
gross margin
75%
avg product price
$70

 

time to build
7 months
growth
Organic social media
time investment
Full time
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $151 $352
Website Costs $223 $7,215
Business Formation Fees $5,600 $20,400
Equipment & Supply Expenses $63 $200
Software Expenses $162 $3,094
Advertising & Marketing Costs $0 $2,300
Training & Education Expenses $0 $1,000
Total Startup Costs $6,199 $41,561

Successful Businesses

Business URL Rank
3Pillar Global 3pillarglobal.com #120,991
Maruti Techlabs marutitech.com #137,454
Radixweb radixweb.com #138,461
Flevy flevy.com #163,616
Moove It moove-it.com #246,830
w2s w2ssolutions.com #327,758
Power Brands powerbrands.us #362,086
Product Design and Development by PDT pdt.com #393,551
AIAG.org aiag.org #393,895
GalaxE.Solutions galaxe.com #538,314
Q3 Technologies q3tech.com #545,644

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Meaningful business connections You never know who you will meet as a product development consulting business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins The gross margins for your product development consulting business are typically around 75%, which is considerably high and allows you to grow your business and manage costs easily.
Cons Description
Niche Market A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a product development consulting business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.
Impatient customers You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.
You might struggle financially (at first)! If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
Learning Curve When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Facebook Community

    A Facebook Community refers to a Facebook page dedicated to a topic or an experience owned collectively by the community connected to that page.

    The Community page allows the admin to connect with others who share similar interests and experiences.

    Facebook communities are a great platform for growing brand awareness and marketing your products.