Grinding up the ladder isn’t for everyone. Acquisition entrepreneurship is perfect for people who don’t need a boss to take responsibility and work hard. In addition, once you get your businesses running the way you want them, you can reap the financial rewards while having a flexible lifestyle. After all, it will be you setting the rules. But the first step is finding businesses with excellent cash flow.
The best cash flow businesses for acquisition entrepreneurs are equipment rentals, laundromats, ATMs, renting storage units, vending machines, and carwashes. Look for opportunities that can capitalize upon each other, such as a laundromat with an ATM and vending machine.
High cash flow businesses can make an excellent side hustle or a future passive income. Comparatively speaking, they don’t require a high overhead, and their start-up costs are manageable and typically can be paid off within a reasonable timeframe. Success in these operations hinges on a decent business plan and a can-do work ethic.
Best Cash Flow Business For Acquisition Entrepreneurs
Yes, you can start your own cash flow business from scratch. However, an acquisition entrepreneur with a keen eye can catch opportunities that are already up and running and build them into a stronger and better business. Eventually, these could create relatively passive incomes, allowing for multiple income streams. It all depends on your business plan.
1. Acquire An Equipment Rental Business
Equipment rental businesses are great for cash flow and are easily scalable. Be sure to scope out the community, visibility, and competition to ensure the business you are acquiring isn’t selling due to poor market choices. Renting out snow blowers in Florida isn’t a great money maker, but power washers or chippers could be a winner.
Nor does equipment have to be DIY based. Other high cash flow rental businesses include party and entertainment supplies, camping and fishing gear, clothing, and other water sports equipment such as paddle skis, kayaks, and surfboards.
2. Invest In Laundromats
There is nothing new about laundromats, but they remain one of the best cash-flow businesses. People need clean clothes, especially in areas where apartments don’t allow machines in the units. They are pretty straightforward to run, with little overhead, and provide further opportunities for other high cash flow acquisitions, such as game machines, ATMs, and vending machines.
Before jumping all in, scope out the area and examine the competition. Also, check out the surrounding businesses and see if they cater to the same type of clients you are trying to reach. Lastly, pay attention to the parking situation, as people will drive a bit further if it means a shorter haul from the car to the machine.
3. Acquire An ATM Business
ATM businesses are all about cash and can be acquired or started from scratch. They are also excellent additions to existing cash flow businesses, such as laundromats, carwash, or franchise restaurants. ATMs encourage people to spend cash, saving an establishment credit card processing fees.
However, many business owners don’t want the hassle of maintaining their ATMs, creating an excellent opportunity for acquisition entrepreneurs. Thus, if you acquire a full-service ATM business, you can lease the machines to others, including gas stations, bars, nail salons, and convenience stores.
4. Buy And Install Vending Machines
Like ATMs, vending machines require maintenance and refilling, hassles many shop owners want to avoid. Thus, owning a vending machine business fulfills a need, provides rental opportunities, and allows you to supply to your other cash flow businesses. Nor do vending machines just supply soda and candy. They can be filled with single-serve laundry soap, fabric softener, and hygiene products.
5. Rent Out Storage Units
Renting storage units can be an excellent cash flow business and create passive income. However, like any operation, location matters. Also, when acquiring one, find out what the competition is doing and why the current one is for sale. Sometimes, owners become too lax with security or meeting client needs.
Look for ways to stand out. For instance, it’s popular for storage units to essentially be a basic garage style. However, there is an underserved market for climate-controlled storage units in certain areas. On the plus, you can charge more per unit and stand out from the competition. On the downside, they have higher overhead, so research the area’s electricity prices.
6. Buy A Car Wash
Car wash businesses tick many boxes: high demand, low overhead, and repeat customers. However, the success is heavily dependent on location. In a high-traffic area, it can generate a lot of revenue. However, there can be advantages in avoiding the highest traffic spots, as the price to acquire will be higher, and they require substantially more employees and supplies.
Fully automating a carwash can reduce labor overheads and increase efficiency. But before investing, take the temperature of customer opinion. Depending on the area, some customers may avoid fully automated carwashes due to safety fears or a craving for human interaction. In contrast, others prefer them due to their higher efficacy and no need to make small talk.
7. Invest In An RV Park
The pandemic caused many people to downsize to a simpler life due to reduced business and higher medical bills. Thus, RV and van living is on the rise. But these mobile homes need a legal place to sit down for the night. Investing in an RV park is a high cash flow business with low overhead.
RV parks also come with the advantage of living there yourself while building it up. Eventually, the day-to-day overseeing could be handed over to someone looking for an inexpensive place to live while earning. RV parks are also excellent for high cash flow additions, such as vending machines, ATMs, laundromats, and storage units or garages.
If you run an RV park that appeals to tourists, there are additional high cash flow opportunities, such as renting recreational equipment, on-site meals, and shower service.
Conclusion
Acquisition entrepreneurs have many cash-flow business opportunities. Even better, many of these can be built on to each other, creating greater wealth. As with any business, location matters, including the availability of parking. Also, explore ways to stand out from the competition without adding too much to your overhead. Thus, your business plan will be crucial to your success.