Passive income is money that requires little or no work to earn. Being able to earn more money without spending a significant amount of time or putting forth a lot of effort is a goal for many people. There are many businesses that you can operate to generate passive income.
While you may need to exert more effort and commit more time in the beginning, you can later benefit financially without being as heavily involved. Want to start a business that earns passive income? Check out these business ideas.
Run a laundromat
There will always be a need for laundromats. This business idea is an excellent choice for those who can afford an initial investment.
To run this business, you’ll need to rent a space and buy equipment or purchase a laundromat that someone else is selling. Buying an existing business and equipment from someone retiring may be more cost-effective than creating an all-new space.
You’ll want to consider how you handle repairs and maintenance and budget for these costs. Additionally, consider hiring a part-time or full-time manager to help you run your business. But it’s possible to earn income from this business without spending every day at the laundromat.
Sell digital downloads online
If you’re a creative looking to earn passive income, consider exploring a digital download side hustle. You can sell digital files you’ve created through online marketplaces like Etsy. People are looking for digital templates like planners, to-do lists, meal-planning lists, and more.
The nice thing about selling digital files on a platform like Etsy is that the customer is emailed the file right after purchasing it. After you create several files and list them for purchase, you can earn money without being involved daily.
You’ll need to spend some time creating your digital files, and it would be beneficial to update your product descriptions for SEO purposes occasionally. But with this unique side hustle, you can make extra money while exercising your creative skills.
Sell food and drinks in vending machine
Another option is to run a vending machine business. You’ll need to invest in vending machines and put in effort and time upfront to determine what companies or buildings will allow you to place your machines in their spaces. But little day-to-day work is involved with this business beyond cleaning and restocking the machines.
Once you get your business running, you can earn passive income. You’ll want to consider maintenance and upkeep costs, because your machines may need repair occasionally. You should also make a plan for how you will fund purchasing the drinks and snacks. Even with these considerations, this could be a fun business idea that generates extra income.
You can use a business credit card to earn rewards as you pay for business expenses like this. But to avoid interest, don’t carry a balance on your card. Paying the entire statement balance every month is the best strategy to use credit effectively.
No matter what business opportunity you explore to reach your passive income goals, using software and tools to simplify your life can be a big help. One example is accounting software, which can help you keep track of your company finances.
As you grow your business, you’ll want to know how much you’re spending on expenses and how much profit you’re making. This tool can make it easier to stay informed and make changes as needed. Check out our list of the best accounting software solutions to learn more.
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