Over half of Americans dream of starting their own business.
But assuming that all businesses are created equal is a huge mistake that could lead to you trading one job for another.
Too much advice today focuses on side hustles that don’t bring true freedom. And they definitely are not passive.
Instead, you end up hustling your ass off to make a few bucks, bearing the stress of building the entire thing from the ground up.
So ignore that stale advice and jump right to “boring businesses.”
Boring biz models don’t have the sex appeal of “launching the latest app development business” or “NFTs,” but they’re:
- Resilient
- Profitable
- Simple
They’re also set up to bring you consistent cashflow over the long haul. Plus, the Lindy Effect makes them more likely to stand the test of time.
Other people will tell you to look for “passive income” businesses but there’s no such thing as a free lunch. Every business requires investment, but there are ways to grow that investment. So, we recommend looking for businesses that generate what we call investment income.
To get you inspired about all the possibilities, we’ve put together a list of the top 14 most lucrative businesses to buy or start for investment income.
Buying Businesses Vs. Starting Them
Just because you can doesn’t mean you should.
As a society, we often attach a lot of meaning to the grit and hustle it takes to get a business off the ground. And it is admirable.
But, more often than not, it’s a long road with high risk. 1 in 5 businesses fails in the first 2 years, and 45% fail in the first 5.
But what if you could cut out all of that work and some of the risk by stepping into a successful business with a proven model and consistent cashflow?
Buying a business does just that.
Sure, the business you buy might need some updates like new software or a better website, but at its heart, an established business is on much stronger footing than a new one.
Someone else already figured out most of the kinks.
It comes with an existing customer base.
It has name recognition in the market.
Many earn money and have weak competition.
These are things that can take years to figure out on your own with little to no profit until all the puzzle pieces finally click together.
And you can cut startup costs by using creative methods like seller financing to own the business.
All but one of the business models on our list are the kind that you can buy on open marketplaces like BizBuySell or Loopnet.
You can also find them through off-market methods like networking or using BizScout (a tool we own to help entrepreneurs find great deals on businesses).
But, if you’ve set your heart on starting fresh, any of these business models are excellent choices, too.
1. Storage Units
Everyone knows what storage units are. Place one of these puppies near a major throughway, and you can rent out the space by the month.
Almost 40% of Americans use self-storage to keep things. That translates to a $58 billion dollar (and growing) industry.
By buying a self-storage business, you can step into a profitable company without the hassle of:
- Finding open land
- Building the units
- Developing a security plan
You could also hire an operator to manage this for you from the day you take over.
Storage businesses are one of our favorite investment income options. In fact, it’s on our list of 6 businesses that never fail.
Looking for a related business that can bring in the money? Starting a mailbox business and thinking about it as a micro version of storage unit rentals may be for you.
2. Laundromats
Most Americans have washing machines in their home, but 15% of the U.S. population needs somewhere else to wash their clothes.
Not to mention that plenty of people use laundromats to wash bulky items or get caught up on laundry by doing multiple loads at once.
As a laundromat owner, you step back while the customers do the work of washing and folding. You’re really just there to rent your machines and provide a space for them to hang out while they wait.
And you get all the cash upfront while they plunk quarters into the machines. Ka-ching all day long.
If you buy a laundromat from someone else who already secured the space and bought the machines, all it takes are some simple optimizations to max out your profit.
3. Rental Real Estate
Not only does a real estate business offer hands-off cash flow, but you’ll also see 2 other major benefits:
- Real estate appreciates over time, helping you hedge against inflation
- A range of tax benefits depending on what you purchase, how you hold it, and when you sell
Buying and renting out houses and commercial properties is a classic way to make investment income, especially if you hire a property manager to take care of any 2 AM “the bathroom’s flooding!” calls.
But there’s a golden opportunity for other kinds of rental properties that people tend to overlook, like:
- Buying a mobile home park and renting lots
- Buying an RV park for travelers and long-term stay rentals
- Renting out tiny homes
- Buying land to rent campsites
4. Equipment Rental Businesses
Much like a laundromat owner profits because they own a machine people need, other kinds of equipment rentals bring cash opportunities as well.
Equipment rental businesses are a standout passive income earner. You pay for the equipment once and then earn money over time as it rents out for day rates.
If you start your own business, you need to buy all that equipment first.
But if you find someone else looking to sell, you can take over an existing inventory without the higher startup cost. Plus, you’d inherit their pricing structure, brand awareness, and policies.
And equipment rental is just one variant of this business model. Bounce house rentals and party rental businesses (think tents/chairs) also work well.
5. Vending Machines
Americans want what they want, and they want it now.
Convenience is everything, so if you can find a way to deliver something easier and faster?
That’s cash money all day long if you start a vending machine business.
Those quarters and dimes may seem like chump change, but vending will hit $31 billion by 2027.
Even better, you don’t need a human operator onsite for any regular vending machine or ice vending machine business. Can you say “low overhead?”
6. Car Washes
Cars get dirty over and over again, and in many places, people don’t want to wash their own, or they can’t due to city or HOA regulations.
A car wash makes it convenient for people to keep the interior and exterior of their car looking good. Most people wash their cars an average of 22 times per year.
Not only do you make money every time someone swipes their card for entry, but you can use a subscription model if you want, too.
Finding land and buying initial equipment for a car wash is a huge financial undertaking. Most people will need a business loan. But if you step into an existing car wash or car detailing business, you can benefit from the current equipment (and any contracts with repair pros for that equipment).
7. Cleaning Businesses
1 in 6 Americans put off their house cleaning for at least a month. By the time they try to dig themselves out from under that mess, it’s much easier to just hire a cleaner.
Commercial and residential cleaning services provide recurring cleaning or one-time support to homeowners and companies who don’t have the time to clean.
Buying a cleaning business gives you a big leg up over starting one. The previous cleaner will have all the equipment and existing contracts. They may also have other staff to help you, too.
Add-on services for a home cleaner push up your profits while delivering much-needed help. You could branch out into or choose to specialize in:
8. Lawn Care and Landscaping
You can really rake in the cash with lawn mowing or landscaping during the summer months (or almost year-round in the south).
If you love the great outdoors and take great pride in your own lawn, it’s not hard at all to grab a mower and start making some money with your favorite chore.
You can do just fine with one mower and some hand tools to start. Then, you can use the revenue you earn to reinvest in equipment and hire staff to help you cover more ground.
If you find someone looking to exit their own lawn care business or landscaping company, you can take their existing contracts and brand reputation and put it to work right away.
9. Tree Cutting Services
The average American shouldn’t climb trees in their yard and hang there trying to operate a chainsaw.
As a tree cutting service business owner, you handle a range of tree projects and charge big bucks for the privilege.
You need a lot of safety protocols to thrive here, but it’s completely possible to hire other people to take on the daily work so this business functions as passive income for you.
Be aware that, like with lawn services and landscaping, there’s a bit of a seasonal aspect to tree cutting.
Breaking into this world as a newbie is hard since you need:
- Some heavy equipment
- Awareness of best practices in tree cutting/removal
- A solid marketing plan so people know you exist
But if you buy a tree cutting business, you can start earning money right away. That’s even more true if you bring over the staff from the prior operation.
10. Painting Services
Interior or exterior painting is a job most people don’t want to deal with, if only for the amount of time it takes to prep and the precision required.
With minimal supplies, you can get your clients to cover paint costs and pick up extra money.
If you hire a handful of expert painting contractors when you start a painting business, you don’t even need to do the work yourself.
Potential clients want to see examples of your work, so it can be hard to break in as a complete novice. It’s much easier to buy someone else’s painting business and build from there.
11. Plumbing Services
Toilets: We take them for granted until they don’t work.
Everyone needs a plumber at one time or another.
And if they’re lucky enough to squeak by without a leak or other issue, homeowners should still get a plumbing checkup at least every two years.
Since there’s so much demand, entrepreneurs may want to start a plumbing business on their own. But hold up before you create that witty name and logo. You’ll need training and, in some places, an apprentice license to actually start working on pipes.
That sounds like a lot of work.
So why not just buy someone else’s plumbing business, keep the trained experts on staff, and run operations? You’ll get access to a market that needs you without all the startup education.
12. HVAC Services
Much like plumbing, we count on HVAC to keep us comfortable. But these systems are prone to breaking and wearing out, which calls for an expert.
The average HVAC repair bill clocks in at $350.
Trying to get up to speed on all the various problems with heating and cooling systems is hard. Plus, you’ll need to go back to school to get the right license as a technician.
If you’re willing to put in the time and work, that’s no sweat, but if you want the easier path, buy an existing HVAC business and hire an operator and techs to run it for you.
13. Solar Panel Businesses
In the past decade, the solar industry grew annually by 24%.
People want to stop relying on the hike-happy electric companies.
Governments now subsidize the cost of solar with federal and state rebates.
Are you thinking what we’re thinking?
The double demand and push for solar from homeowners and Uncle Sam make for a dream business.
But solar is a technical field, and the industry has strict regulations. It can be hard to start when you have no track record of installing solar panels.
If you buy someone else’s solar panel business, you could get in on the ground floor of this quickly-growing sector.
14. Online Course Creation
There’s huge demand for online courses these days, especially the kind that people can follow at their own pace.
This option is one that’s much harder to buy into. Your personal expertise and ability to market it determines the sales numbers for an online course.
But selling courses about something you know how to do creates true passive income.
Put in the work once to people how to pour resin art, forge knives, start an email list, or just about any topic you can think of, and you can sell that course over and over again.
Most side hustles suck, but this is one that offers a ton of opportunity if you have a skillset others want to learn.
Launch or Buy Your Own Lucrative Business
It’s easier than ever to start a business, which leads too many people down the wrong path with shitty side hustles.
Too often, people get sucked into things that don’t make them any real money and require a ton of ongoing work.
Or they end up stepping into a new form of job torture with an overloaded schedule, high overhead costs, or dealing with constant customer service issues.
By buying someone else’s boring business instead, you get a proven model that you can tweak and optimize over time. And you’ll skip over the years of headaches and trial/error it takes to get to smooth cash flow.
If one of these profitable business ideas calls to you, check out the in-depth guides to get more specifics on the steps to follow to launch it.
Still looking for more ideas for the perfect business for you? Check out 130+ boring businesses if you want to see even more concepts with potential.
