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Great Passive Income Ideas
A great step towards financial freedom and becoming wealthy is by generating passive income through small businesses. Having a small business is a great way to generate income on your spare time while getting fantastic tax breaks.
Here are a couple of great small business ideas for passive income:
1. Vending Machine Business. Vending machines can be purchased new or used with various amounts of complexity. The vending business is constantly growing and is virtually recession-proof. Usually an entire route can be completed in a single day, or spanned over multiple days on your way to or from work at your full time job. Here are some tips to getting started in this business:
- Secure locations before purchasing machines. This is good because if you purchase the machines and product it will have to wait in storage until you find a good location for them. This may incur storage fees.
- New or Used? Vending machines can last a long time. Purchasing new or used really depends on your skill level with fixing appliances and the start up capital you have. Also providing a new vending machine to a location can help secure better locations.
- How to price product. Don't concern yourself with always selling for a certain percentage margin on your product. Instead mark up product by a set amount. For example, in my machines ever product is marked up by a dollar. So a product that costs me $1.75 I will sell for $2.75 and those that I purchase for 25c I can sell for $1.25. This is good because I always know I get a dollar on every sale, and it keeps my prices between products more consistent.
The vending business is not for everyone, but if you can fit it into your lifestyle it is a fantastic way to earn extra money with little effort.
2. Pet Sitting. This is especially good if you have animals in your place of residence. Many people are looking for a good home for their pet while they're on vacation. If you have a spare room in your home or can convert half of your garage, decorate it to look pleasant. If you're walking, feeding, giving attention to your own animals, it makes sense to do it for other animals at the same time and make money at it. If you work from home you can be an Animal Day Care and capitalize on single people who don't want to leave their animal alone while at work.
3. Become a Tutor. If you already have a full time job in your field of study, then it is very simple for you to tutor those skills for a few hours a week. Most tutors can work from their own home or can make more money if they're willing to travel to the student's location. Money earned will often increase the more specialized you are and the level of education you are tutoring.
Wihle all of these methods do require a little extra time, often the rewards for that time are higher than compared to your full time work. As well, for each many expenses can be written off such as: Car, Gas, Internet, A portion of your rent/mortgage interest, food, etc. This means that these things that you need and use on a regular basis can often be purchased with pretax dollars. The savings will really add up and you'll get a huge tax return every year.
So what are your favourite Passive Income Business ideas? Add them to the comments below!