First, let’s answer the question, what in the world is passive income? To answer, think of the term in two parts, passive and income, where passive means ”with little effort” and income means ”extra money coming in.”
Small business owners can use every extra penny they can get, and finding ways to generate passive income can really help. Most passive income ideas are simple to set up and will earn these owners extra cash—even in their sleep.
Buy Into Stocks
One of the tried-and-true ways to earn passive income is investing in the stock market. Any business owner can do it from anywhere, through websites like E-Trade and Scottrade. There are many online tutorials showing how to dip your toes in.
Utilize Website Ads
Any business with a website can generate extra income by adding advertisements into its site. Google Ads is one place to start—if the site has enough regular visitors. A business owner can be paid every time someone clicks on an advertisement or by the number of times an advertisement is shown to visitors.
Create an eBook
For businesses that can give customers how-to knowledge, writing and publishing an ebook should be considered. For example, a small greenhouse business could create a handbook of plants it sells and include information on how to take care of each type. The business owner could write the handbook, or use a ghostwriter for a small fee, and then sell it to customers. As an ebook there are no printing and publishing fees.
Lease, or Sublease, Extra Office Space
For businesses that have extra building space not in use, consider offering rented storage space to others. Renters pay a monthly fee to use the business’s extra space, which can earn the business extra money, basically, overnight.
Start a Vending Machine Business
For the entrepreneurial at heart, consider starting a vending business as a side-hustle. Once the vending machines are purchased and in place at various locations, it simply a matter of ocaasional upkeep to check and refill the machines. Plus, vending machines are a great family business, giving kids the opportunity to learn business techinques at an early age. Another consideration is the opportunity to “cash in” on the modern health craze. Offering healthier snack and drink options in a healthy vending machine is sure to grab attention—and even more revenue opportunity. Even wellness products can be vended from some vending machines.
Although passive income is not a total business solution in and of itself, it is one way to keep extra money coming in—even in a business owner’s downtime.
Photo by: Pixabay from Pexels