You're fired! Now what?!?

Hello there, Passive Wealth Seekers,

Tim Ferriss has struggled with anxiety from time to time. He uses an exercise that helps him ease his stresses, especially around elements of money. The process he uses is to imagine the worst-case scenario of a situation and run through the chances and probability of it happening. In short, the fear in our mind is often much greater than in reality. But by mapping out these fears, it can help to understand them but also come up with some action plans of what you might do if that were to happen. This, for some, allows them to put away those fears as they seem more manageable.

That is what leads to this week's article.

As I primarily work with high-income clients, one of the fears is about losing their income or job.

So, recently going through that process of what is the worst-case scenario of losing income/job, (or if that is not your concern wanted to create a side hustle)

To me, I would just start a new business, but I have found that doesn't come naturally to most people. So, I thought I would give some insights on some business ideas that could be cheap to start but lead to passive income.

My criteria was it had to be something that could start quickly, that was scalable, and could lead to passive income in the future.

I have written about this before, but FOMO is a wily beast that should be avoided. Many of us get caught up in the allure of 'sexy' industries, thinking they're our ticket to wealth. But here's the twist: often, the less glamorous businesses are where the real money is at.

The Misconception: Bigger is Always Better

We've all been there, thinking that the only way to make significant income is to go big or go home. But what if I told you that there's a different path, one less crowded and more profitable?

Here are 7 business Ideas that I would consider:

Laundromats: The Unnoticed Cash Machines

Startup Cost: About $200K - $500K if starting from new, but with some clever hunting, there are a lot of existing laundromats that could be purchased with seller carry and little to no money down.

The Reality: Placed strategically, these can be nice golden geese. I am not saying this is an easy business to start, especially in today's high prices of equipment and real estate. But there is a significant advantage to someone that can buy a well-located laundromat and infuse some fresh design colors and start to give it a little love. Why I like these is they offer a service everyone needs. Remember, it's the simple things that often bring in steady cash. If you use a laundromat, what are your other options? Handwashing? Using a river?

Vending Machines: Little Boxes of Profit

Startup Cost: Roughly $3K - $5K each machine. $1k or less out of pocket with a good location.

Jake’s Insight: It's not just about snacks; it's about strategic placement. Think bustling locations where people need a quick bite or drink. Location is one of the most important factors in this business. If you have a good location like a nice 100-unit apartment complex, the equipment manufacturer will finance the purchase of the machine with 100% financing. With 50-60% profit margins, a good location could produce $500-$1000 per month in profit after financing costs.

This business has a warm spot in my heart, as my son is currently working on growing his business right now, and this is one I believe I will do a bigger deep dive into again in the future.

Commercial Cleaning: The Invisible Goldmine

Startup Cost: Between $500-$3,000

The Opportunity: Every business needs cleaning, yet it's often overlooked. Regular contracts mean steady income, and there's always demand. In case you have been living under a rock, the commercial real estate world has been experiencing a pretty significant amount of stress. Office building owners are struggling under big amounts of debt payments, office tenants trying to get out of leases.

This poses a great opportunity for a cleaning business to utilize the stress of office buildings and commercial real estate owners as a way to reduce some expenses. This helps them boost NOI, and it's a way for you to secure service contracts.

Landscaping: Green Thumbs, Green Wallets

Startup Cost: Around $15K - $20K.

The Strategy: Landscaping isn't just about mowing lawns. It's about creating and maintaining beauty, something people are always willing to pay for. This also applies to commercial real estate. As I mentioned in the business about commercial cleaning, commercial landscape is another service that property owners are currently evaluating their expenses. Lawnstarter was able to do this and generate leads for small landscape companies. This could be done for commercial real estate as well.

Property Management for Airbnb/VRBO: Your Key to Rental Riches

Startup Cost: An estimated $500 - $10K.

The Potential: With the rise of short-term rentals, managing properties can be a lucrative venture. It's all about maximizing occupancy and ensuring guest satisfaction. A great thing that is happening is that many Airbnb property owners are realizing how difficult this business can be and why a manager is so valuable.

Why It Rocks: The more properties you manage, the more you earn. Plus, everyone loves a well-managed vacation spot. With little to no startup cost, you don't need to own the property, you don't need to furnish it, or even have a lease. You just make a cut of the bookings. This poses a very low-level risk to you and has lots of upside for profit. But just know this is not for the faint of heart. Managing property, in my mind, takes a very special type of person. It is a hospitality business more than it is a real estate business. The scale and passivity come when you have more properties and systems built out.

Pest Control: Turning Annoyances into Income

Startup Cost: About $10K - $50K.

The Approach: Nobody likes pests, which is exactly why this is such a profitable niche. Regular clientele and the perpetual need for pest control services make this a stable income source. Another unsexy but very profitable niche business. What I like about this type of business is that it produces recurring revenue. You sell a customer once, then they pay you monthly for the services.

Pest control does also need certain chemicals and state licenses, but this could be an opportunity to maybe promote a natural chemical that is safe for kids and pets?

Carpet Cleaning/Steaming: Cleaning Up the Competition

Startup Cost: A tidy $3K - $5K.

Why It Rocks: Carpets get dirty; you get paid. It's that simple. Go for commercial contracts for bigger bucks.

Jake's Insights: Similar to commercial cleaning and landscape, carpet cleaning is one of those industries that can help save bucks over the cost of replacement.

Taking Action: Your Path to Passive Income

Now, I know just because I said play this game of what-if, you could probably find a new way to make money if you go through that exercise of what the worst-case scenario is.

I hope these few businesses gave you some insights into some business ideas that could become an income source if you needed it to be. But these are also good business ideas that you can invest in as a passive investor that doesn't take away your time and provides a nice rainy-day source of income.

If you ever want to help mapping out your passive wealth plan and coaching options, Hit reply and share your thoughts. I'm here to guide you on this journey!

To your success,

Jake Harris