The best cash flow business ideas and investments

What are the best cash flow business ideas and investments?

The best cash flow ideas and investments allow you to generate recurring income with minimal upkeep. Invest in or create a cash flow business and continue to get paid years later. Cash flow business ideas include internet marketing, dividend investing, real estate or vending machines.

Imagine, getting paid for work you did five years ago. You only work a couple hours per week, but you’re still earning more than a full-time income.

Cash flow businesses make early retirement possible.

Luckily for you, I’m going to show you the best cash flow businesses to create or invest in. I’ll show you why cash flow is so important, how you can create it, and where to invest. With enough cash flow, you’ll be able to quit your 9-5!

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How do you create a cash flow business?

To create a cash flow business, identify your business model and go all in. Focus on growing your income in a way that separates your time from money. Invest your profits into income producing assets.

The first step is to identify your business and who your customer is going to be. Are you going to be a blogger who helps people lose weight? Or, are you going to be a vending machine owner who serves your community?

It’s important to understand your business and how you’re going to get paid. You’ll need to focus your efforts on one business model.

Too many entrepreneurs don’t make money because they can’t focus on the one task which drives the majority of results. You can’t make money if you’re distracted by every detail or chasing the next big thing.

Once you’ve decided on your business model, take consistent effort on the one task which brings results.

Ideally, you can find a way to separate your time from income. Most of us are used to exchanging time for money, but doing so puts a cap on your earnings. Your earning potential is unlimited if you can separate your time from money.

When you do start earning a profit, invest your income into cash producing assets or growing your business. Income producing assets, like dividend stocks or REITs, will increase your cash flow.

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Why is cash flow important?

Cash flow is important because having cash on hand allows you to pay expenses and reinvest. Building cash flow is easier than saving a large sum of money, making it easier to retire. When reinvested, cash flow can be used to purchase more cash flow.

Cash flow is easier to make than saving a large sum up for retirement. For example, you could make a $1,000 per month cash flow business in less than a year. Using the 4% withdrawal rule for retirement, that’s the equivalent to having a stock portfolio worth $300k.

For most of us, it takes multiple years to build a $300k portfolio.

Maybe you only need $5,000 per month to retire early. $5k per month can be achieved in a couple years with the right strategy. Two years of building a cash flow asset is way more achievable than building a $1.5 million portfolio.

Cash flow simply speeds up the retirement process.

At a basic level, all you need to do is cover your living expenses with cash flow to retire. Cash flow allows you to get a paycheck, even if you’re not doing much ‘work’.

The cash you earn can be invested to earn even more cash. Essentially, you’re getting money and buying income. Over time, using your cash flow to buy more cash flow builds a massive income snowball.

What are the best cash flow businesses and investments?

The best cash flow businesses and investments include internet marketing, dividend investing, real estate or vending machines. Each investment or business can be started with minimal upfront cost but continue to provide cash payments over time.

Blogging

Blogging is a cash flow business that is difficult to master, but can lead to long term profits. Every single article is a mini-digital asset that works passively to earn you income.

Ad revenue is the most common way bloggers can earn money. Whenever someone visits your site, you’re earning money from ads. However, bloggers earn money in other ways such as selling products or sponsored content.

For every 1,000 pageviews, display ads can earn websites an average of $15. Ad revenue varies between $7-30 per thousand pageviews (RPM). Therefore, a site with 100k pageviews could be earning between $700 and $3,000 per month passively.

Blogging takes advantage of compounding growth. The work you did years ago can continue to earn money.

For example, you might write 100 posts the first year which bring in 300 pageviews each per month. Cool, you now have 30k pageviews per month or $450 per month at $15 RPM. 

Next year, you write another 100 posts, but your average monthly pageviews are now 450. Now, you’ve got a blog with 90k pageviews per month and making $1,350 in ad revenue!

You can then supplement your passive income by adding a paid product or using affiliate marketing.

Once you’ve mastered your first website, it’s easy to invest in another. You can start to outsource your content creation and scale even faster.

YouTube

YouTube is similar to blogging, but you’re creating video content. Most YouTubers earn a good portion of their revenue through ads, but others sell products or sponsorships.

Every video you produce is an asset which works 24/7 to earn money while you sleep. The more people watch your videos the more you’ll earn in ad revenue or product sales.

As with blogging, consistency is key. You will need to set up a consistent publishing schedule and build a loyal following. The more videos you produce, the more likely people are going to find your channel and subscribe.

Hiring people to produce video content is more challenging than writing, but it’s still possible. Should your main channel make enough money, you could hire someone to create a second YouTube channel.

Real Estate

Real Estate has been a cash flow business for a long time. Your goal as the landlord is to collect more in rent than you have to pay in mortgage fees and expenses.

Typically, you’ll need to have a down payment as part of your initial investment. However, a rental property can pay you with cash flow and appreciate in value. In addition, there are many tax incentives for investing with Real Estate.

Real Estate is a leveraged investment, which means you can borrow money to make money. Typically, banks will loan you the purchase price of the property if you pay a 20% down payment.

For example, if you found a property for $100k your down payment would be $20k. Your loan might be for $650 per month, but the property rents out for $850.

In this example, you might budget $100 per month for repairs. Therefore, your cash flow nets you $100 per month!

Affiliate Marketing

Affiliate marketing is a great cash flow business if you know how to sell products. Essentially, you are selling someone else’s product in exchange for a commission.

Imagine, building a twitter following around a specific topic, let’s say weight loss. People love your tweets and you’ve got good engagement. 

You stumble across a blogger’s product for dropping 10 pounds naturally. Deep down, you know this product is a good fit for your audience. The course creator sells this product for $25 and gives you a $10 commission for every sale.

Next time you tweet, you link to this product and 1% of your 20k followers buy it. You just made $2,000 for one tweet!

That’s the power of affiliate marketing.

Digital Course Creator

Digital course creating is the opposite of affiliate marketing, but has amazing cash flow potential. As a digital course creator, you need to be really good about creating useful courses customers would love.

For example, you could create a digital course focused on weight loss. You need sales, which you can make or you can find affiliate marketers to promote your product. The easiest path to cash flow is finding affiliate marketers.

Imagine, having a course that sells for $50. You offer people a 50% commission if they make a sale and refer business. Therefore, you and your partners both make $25 for each sale.

Let’s assume you get 100 people to sign up as your affiliate. If each person could refer two sales every month (some more than others), you’d make 200 sales per month.

200 sales per month means you’re making $5,000 on autopilot. All you had to do was make the course and get other people to sell it for you.

Laundromats

Laundromats are another cash flow business that are more difficult to start, but profitable. You’ll also need to find a good location, because not every area needs laundromat services. People will always need to do laundry, so you’ll always have customers.

Dividend Investing

Dividends are another good source of cash flow for investing your business profits or income. Simply buy the stock or ETF once and continue to get paid for as long as the company maintains a dividend payment.

For example, AT&T ($T) is currently trading for $28.54 and pays a 7.29% dividend yield. A $1,000 investment would give you an annual cash flow of $72.90.

You can choose individual stocks for cash flow or invest in a dividend exchange traded fund (ETF). An ETF is a collection of stocks offered for one low-price. Some ETFs, like VYM, focus on high dividend yield.

So if you’re not interested in keeping up with individual stocks, ETF investing might be for you.

REIT Investing

REITs are similar to dividend paying stocks, but they focus on Real Estate. You can buy REITs just like you’re buying a dividend stock, with a brokerage account. As you can expect, ETFs exist for REIT investing like VNQ.

Vending Machines

Vending machines are cash cows if you know what you’re doing. Simply buy a vending machine online for $150 and find local businesses that will let you have some space. Depending on a variety of factors, each machine can make between $25-75 per month.

Literally, in the worst case scenario, a vending machine pays itself off in less than a year. Obviously, you’re going to have to do the leg work of getting a good location and keeping it stocked.

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Summary: The best cash flow business ideas and investments

As you can see, there are many cash flow business ideas and investments just waiting for you to start. You need to figure out which business you’re going to start and go all in. Focus on the one task that brings the majority of results and crush it!

Cash flow is important because it allows you to pay for expenses, including early retirement. You can live off of cash flow, which is easier to create than save.

Examples of cash flow businesses include blogging, youtube, Real Estate, affiliate marketing, digital courses, laundromats, dividends, REITs, and vending machines. Some businesses or investments are more passive cash flow models than others.