For many people, becoming a business owner is an important component of the American Dream. It means flexibility in how you spend your day, control over your business decisions, and hopefully a path to long-term wealth and financial independence.
But you don't have to start a business from scratch to be a successful entrepreneur. You also don't have to say goodbye to your work-life balance. Whether you're looking to earn some extra side income or want to quit your 9-to-5 job completely, buy an existing business that essentially runs itself. could be the answer.
“One of the biggest benefits of owning a passive income business is the potential for growth and the creation of franchise value,” said Ben Johnston, chief operating officer of Capitas, a New York-based small business finance company. says. “If the business grows and proves to be sustainable over the long term, the owners may be able to sell it for many times their annual income.” If you decide to take a more active role in the day-to-day management of your business, you can replace some of the overhead costs associated with other management, giving you a greater return on your time.
7 side jobs that require little daily involvement
The key to starting a successful, self-sustaining business is to create a solid foundation. This means investing the necessary time and resources upfront. This may include purchasing quality equipment, retaining customers, and hiring support staff as needed.
While the income from owning a business is rarely 100% passive, there are certain businesses that essentially run on autopilot once you build the foundation. So if you've saved up a solid initial investment (or qualify for a loan) and are looking for an ongoing source of income, consider these low-maintenance business ideas.
1. Take over a coin laundry
One of the biggest draws to owning a laundromat is that laundromats are considered recession-proof businesses because they provide an essential service. According to an analysis by the Laundromat Association, the market value of laundromats typically ranges from $50,000 to more than $1 million. Plus, you can generate cash flow of $15,000 to $300,000 annually.
However, the cost of starting a laundromat can be very expensive, so many people choose to buy an existing business. Coin-operated laundromats for sale can be found through business information sites and intermediaries. Laundry equipment sellers may have insider information about local businesses and can also put you in touch with owners who are considering selling. When it comes to investing in an existing laundromat, a general rule of thumb is that it's worth 4 to 6 times its annual net income.
2. Buy an automatic car wash machine
Another business that, with the right preparations, can essentially run itself is a self-service or automated car wash. These businesses are relatively easy to manage because the work is done using customers' existing equipment. Few, if any, employees are required and inventory and maintenance are minimal.
For these reasons, owning a car wash also provides an excellent return on investment. According to his 2022 study conducted by Auto Laundry News, a car wash industry publication, the average monthly salary for a self-service car wash was $1,975 per lot.
Again, business success depends on many factors. Oasis Car Wash Systems says the biggest considerations when choosing a car wash provider include traffic conditions and ease of access. You should aim for a location that sees at least 1,000 to 3,000 cars per day, has good access to traffic, and is visible from the street (think corner lots, multiple driveways, separate entrances and exits).
The cost of purchasing a self-service or automated car wash can vary considerably. He could buy an existing business for less than $100,000, but a location in a high cost of living area could run into the millions.
3. Set the vending machine route
If you're looking for a passive income business with a low barrier to entry, consider investing in vending machines. The cost of starting a vending machine route is basically just purchasing the vending machine and stocking it. From there, all you need to worry about is regular maintenance and collecting money from refills and transactions.
This is also a business that relies heavily on location for success. You can work with companies to install machines in high-traffic locations, such as office buildings, shopping malls, hospitals, and schools. Also, the more vending machines you own, the more your profit margins can improve as your inventory becomes eligible for wholesale discounts and your overall route becomes more efficient.
Vending machines can be purchased for less than $1,000. New ones cost upwards of $3,000, especially for modern machines with features like card readers and touchpads. However, with the right product and placement, you should be able to recoup that cost fairly quickly. eVending claims that he can pay for his machine by selling 7 to 10 products per day, with an average profit of 50 cents per product.
4. ATM installation in strategic location
Similar to the vending machine business, you can earn money by setting up ATM routes. When a patron withdraws cash and pays to use the machine, you receive a portion of that fee. If one his ATM location has 80-100 transactions per month, he will get an annual return on investment of about 40%-70%.
You may want to find a location that has a lot of traffic, especially from people who need cash. This includes grocery stores, casinos, gas stations, bars, restaurants, and clubs. It's also a good idea to choose a well-lit, well-populated, and supervised location so people feel safe using the ATM.
ATM Brokerage says smaller routes require only basic maintenance, such as filling the machine with cash and making sure the receipt paper is full. Installation costs can range from $200 to $500, depending on location and complexity. As for the machine itself, a new freestanding ATM costs about $2,000 to $3,000, while used ATMs can be found for about $1,200. Keep in mind that maintaining an ATM typically costs around $6,000 to $8,000 per month per month, so you'll need a lot of cash flow.
5. Buy successful blogs
Blogging is a business that requires little overhead, but it can take months or even years to create high-quality, original content that generates many page views. The good news is that you don't have to start blogging from scratch. There are many successful blogs that are already making money through affiliate links, display ads, sponsored content, etc., and can be purchased for as little as a few hundred dollars on marketplaces like Flippa.
The older and more established the site, the more likely it is to generate passive income on an ongoing basis (and the higher the purchase price). Earnings also depend on the subject of your blog. For example, Google estimates that a beauty and fitness blog that gets 50,000 page views per month can generate around $7,800 in Adsense revenue per month. On the other hand, a science blog with the same amount of traffic would get about half that traffic.
6. Rental of billboard advertisements space
Selling advertising space on billboards that you own is the closest thing to a 100% passive income business. This is especially true if you already own land on which you can install the sign (keep in mind that you may need to comply with local zoning laws or obtain special permits) .
The initial costs to build can range considerably. A single-sided wooden sign can cost him anywhere from $5,000 to $20,000 to make, depending on the exact size and height. However, if you have a great location, these costs may be worth it. On the low end, advertisers in rural towns may pay about $250 per month for a traditional billboard campaign. However, if your sign is located in a large city, you could be charged upwards of $14,000 per month.
7. Invest in a self-storage facility
Although often classified as a niche real estate investment, another business that requires less day-to-day monitoring is self-storage facilities. From 2009 to 2018, self-storage facilities had an average annual ROI of 16.9%, which is higher than other types of commercial real estate such as office, industrial, retail, and apartments.
Storage facilities are also inherently low maintenance, as steel buildings are durable and require little maintenance. And with the help of technology such as kiosks, professional monitoring, and web-based contract management, there is no need for humans to be on site. However, if you are not interested in becoming a storage facility owner, you can also choose to become a passive investor in someone else's business.
Take out
There are many ways to make money on the side, from small side hustles to starting a new business. If you're looking for something in between and don't want to spend a lot of time, money, and effort maintaining a side income, consider a business that runs on (almost) autopilot. If you go this route, it's important to do your due diligence, crunch the numbers, and invest in a business that has the potential for long-term success.
