Lucrative part time business/ self employment ideas

[406MtnFire]

Good evening,

I'm approaching FI and looking to gain more flexibility in my life as opposed to my corporate career. I don't need to full retire and I'd like to continue to earn income. Ideally, I'd like to own a low hassle business that is fairly flexible to my future families' needs - ability to scale income up as desired, and ability to take months off per year as desired. I've worked a lot of OT over the past 6 years between my job and building a rental portfolio; and would like to take a step back in my overall workload (days worked per year).

I'm a mechanical engineer & real estate investor (capable of all handyman activities).  Curious if anyone has reviews of my ideas below, or suggestions for other ideas. It'd be nice to operate an online business (not labor intensive and full remote), but I don't have anything in the works currently. I'm thinking that one of these business could be a middle ground between my current corporate career and an end goal business. Or it could turn into a way to earn $100k+ per year without working ~50 weeks per year.

My current ideas:
-Asphalt line striping business. ~$10-20k for line striping machine, trailer, etc to get started
-Asphalt seal coating (could be combined with above)
-Sprinkler repair, turn on, blow out - minimal start-up costs. Could buy generator or rent during blow outs.
-Ground penetrating radar - scan the ground or concrete for buried utilites
-Chimney cleaning

I'm willing to spend up to $20-75k for startup equipment.

Thoughts? Experience? Much appreciated.

[SeattleCPA]

Good evening,

I'm approaching FI and looking to gain more flexibility in my life as opposed to my corporate career. I don't need to full retire and I'd like to continue to earn income. Ideally, I'd like to own a low hassle business that is fairly flexible to my future families' needs - ability to scale income up as desired, and ability to take months off per year as desired. I've worked a lot of OT over the past 6 years between my job and building a rental portfolio; and would like to take a step back in my overall workload (days worked per year).

I'm a mechanical engineer & real estate investor (capable of all handyman activities).  Curious if anyone has reviews of my ideas below, or suggestions for other ideas. It'd be nice to operate an online business (not labor intensive and full remote), but I don't have anything in the works currently. I'm thinking that one of these business could be a middle ground between my current corporate career and an end goal business. Or it could turn into a way to earn $100k+ per year without working ~50 weeks per year.

My current ideas:
-Asphalt line striping business. ~$10-20k for line striping machine, trailer, etc to get started
-Asphalt seal coating (could be combined with above)
-Sprinkler repair, turn on, blow out - minimal start-up costs. Could buy generator or rent during blow outs.
-Ground penetrating radar - scan the ground or concrete for buried utilites
-Chimney cleaning

I'm willing to spend up to $20-75k for startup equipment.

Thoughts? Experience? Much appreciated.

I think this is a solid idea. Being self-employed, though slightly out of tune with many in FIRE movement, can work really well.

Also in this economy? I sure think there are opportunities.

Some random thoughts:
1. Something you already know about is probably a fertile area to explore or keep an eye on. No idea what you're doing, but if there's something mechanical-engineer-y that might be your fastest, high profit option.
2. Something where you get non-financial income is good.
3. Seasonable work is often a possibility.
4. I would not discount your rate or prices because you're FI or don't need the income.
5. I would only carefully consider buying an existing business because a business someone can profitably run with good work-life balance? Probably that's not going to get sold to an outsider. Probably the insider keeps. Or passes to family.

P.S. Just to make the obvious comment: A small business that makes you $100K a year generates as much income as a $2.5M portfolio on which someone draws 4%... And if you like the work and the people you interface with? Honestly not sure which is the better way to spend your days.

[406MtnFire]

Thanks for the response, my thoughts/ comments:

Agreed, does retiring in my 30s sound great - theoretically yes, but does having something to do that I enjoy and feels like I'm contributing sounds better? yes. Do many of those types of contributing activities pay, yes. Does not withdrawing anything sounds nice, yes.

After enough conversations with self employed people - at least in my local network - I've come to realize these are not exaggerations, but are truths:
Local business owners and/ or self employed people often have:

1. Multiple months of "vacation allowed" per year, write off a work truck, live in a respectable house, and still buy groceries over the winter when taking time off (while I'm at my desk job).
2. Scalable incomes, quite often >$75k / year. Quite often > $200k / year
3. No boss

I've realized I need to just play a different game. I still have motivation to work some of the time, just not all of the time that I currently do.

Theoretically, owning a business sounds great, but I really want a flexible lifestyle. I don't want a demanding business that requires me to be there >40 hours per week, even if it pays $500k / year (not unheard of in business ownership).

I don't plan to discount my rate or prices. I will be selective on the clients/ customers I work with, which may result in an above average rate.  I'm an engineer, I can nerd out and become the "expert" if motivated.

The $100k = 4% of $2.5M.  Exactly. I don't have $2.5M in investments, I also don't have my dream forever house. I'd love to buy a ranch style house bordering public land (not cheap).

If I was self employed working a "fun job" 3-4 days per week, with a 3-6 months off per year, dropped my savings to 10%, and never touched my current investments. Isn't that THE dream?

Something engineer-y does sounds like a smooth transition. My sticking point is the billed $/ hr rate of engineering work and the marketing needed to obtain projects. Some of these other jobs/ businesses make money on equipment and materials, so you're quite often earning >$200/ hr (ignoring equipment costs). 

I have no problem investing $20-75k in equipment that "buys" me a job that could pay $100k/ yr, $200k/ yr and give me 5 months off a year.

Just trying to figure out which niche is worth investing in equipment.  My gut is that "anything" would work, and I should just pick something and do it.

[Michael in ABQ]

Just trying to figure out which niche is worth investing in equipment.  My gut is that "anything" would work, and I should just pick something and do it.

In local service businesses, just answering your phone and keeping your promises (appointments, deadlines, costs, etc.) will be enough to give you more work than you can handle after doing a few jobs and starting to get some word-of-mouth advertising.

[Dancin'Dog]

The utility line marking looks like the cleanest and simplest on your list.  Pavement striping & sealing would most likely require employees.  Chimney cleaning requires climbing & hauling ladders and soot. 


I recently had to hire a line marker and he seemed to have a great gig.  20 minutes of work, 15 minutes of friendly chatting, and $300 in his pocket.  How can you beat that?  He said his main clients were large grading companies.  Some of the scanners are pricey, but I doubt they wear out. 


Home inspections might be another simple solo gig to consider.  Snoop around a bit, write a report, and recommend specialists to inspect the HVAC.  Minimal tools are required.

[GilesMM]

Good evening,

I'm approaching FI and looking to gain more flexibility in my life as opposed to my corporate career. I don't need to full retire and I'd like to continue to earn income. Ideally, I'd like to own a low hassle business that is fairly flexible to my future families' needs - ability to scale income up as desired, and ability to take months off per year as desired. I've worked a lot of OT over the past 6 years between my job and building a rental portfolio; and would like to take a step back in my overall workload (days worked per year).

I'm a mechanical engineer & real estate investor (capable of all handyman activities).  Curious if anyone has reviews of my ideas below, or suggestions for other ideas. It'd be nice to operate an online business (not labor intensive and full remote), but I don't have anything in the works currently. I'm thinking that one of these business could be a middle ground between my current corporate career and an end goal business. Or it could turn into a way to earn $100k+ per year without working ~50 weeks per year.

My current ideas:
-Asphalt line striping business. ~$10-20k for line striping machine, trailer, etc to get started
-Asphalt seal coating (could be combined with above)
-Sprinkler repair, turn on, blow out - minimal start-up costs. Could buy generator or rent during blow outs.
-Ground penetrating radar - scan the ground or concrete for buried utilites
-Chimney cleaning

I'm willing to spend up to $20-75k for startup equipment.

Thoughts? Experience? Much appreciated.

You mention "lucrative" in the title, but how do you know if any of these businesses are "lucrative"?  How much profit does each make per month?

[SeattleCPA]

Thanks for the response, my thoughts/ comments:

Agreed, does retiring in my 30s sound great - theoretically yes, but does having something to do that I enjoy and feels like I'm contributing sounds better? yes. Do many of those types of contributing activities pay, yes. Does not withdrawing anything sounds nice, yes.

After enough conversations with self employed people - at least in my local network - I've come to realize these are not exaggerations, but are truths:
Local business owners and/ or self employed people often have:

1. Multiple months of "vacation allowed" per year, write off a work truck, live in a respectable house, and still buy groceries over the winter when taking time off (while I'm at my desk job).
2. Scalable incomes, quite often >$75k / year. Quite often > $200k / year
3. No boss

I've realized I need to just play a different game. I still have motivation to work some of the time, just not all of the time that I currently do.

Theoretically, owning a business sounds great, but I really want a flexible lifestyle. I don't want a demanding business that requires me to be there >40 hours per week, even if it pays $500k / year (not unheard of in business ownership).

I don't plan to discount my rate or prices. I will be selective on the clients/ customers I work with, which may result in an above average rate.  I'm an engineer, I can nerd out and become the "expert" if motivated.

The $100k = 4% of $2.5M.  Exactly. I don't have $2.5M in investments, I also don't have my dream forever house. I'd love to buy a ranch style house bordering public land (not cheap).

If I was self employed working a "fun job" 3-4 days per week, with a 3-6 months off per year, dropped my savings to 10%, and never touched my current investments. Isn't that THE dream?

Something engineer-y does sounds like a smooth transition. My sticking point is the billed $/ hr rate of engineering work and the marketing needed to obtain projects. Some of these other jobs/ businesses make money on equipment and materials, so you're quite often earning >$200/ hr (ignoring equipment costs). 

I have no problem investing $20-75k in equipment that "buys" me a job that could pay $100k/ yr, $200k/ yr and give me 5 months off a year.

Just trying to figure out which niche is worth investing in equipment.  My gut is that "anything" would work, and I should just pick something and do it.

This will probably get me excommunicated from MMM forum, but here are my thoughts as to why, gulp, some entrepreneurs and small business owners should never retire or should retire not early but late:

Should Entrepreneurs or Small Business Owners Retire Late? Or Even Skip Retiring?

[sonofsven]

Concrete pumper truck is another idea, depending on your local construction environment.
High cost of buy in, but lots of demand.

[Michael in ABQ]

This will probably get me excommunicated from MMM forum, but here are my thoughts as to why, gulp, some entrepreneurs and small business owners should never retire or should retire not early but late:

Should Entrepreneurs or Small Business Owners Retire Late? Or Even Skip Retiring?

I can't imagine that I'll want to stop working even if I reached FI. I'm an entrepreneur at heart so just sitting at home isn't appealing to me.

A good friend of mine is in the same boat. He just left a senior executive position at a large company and easily has a net worth of millions and could retire now and enjoy time with new child and wife (who also makes a good living). Instead, he's working on a new business and seeking venture capital. He's like me in that he doesn't want to stop working - even if he can.

[SeattleCPA]

If I was self employed working a "fun job" 3-4 days per week, with a 3-6 months off per year, dropped my savings to 10%, and never touched my current investments. Isn't that THE dream?

It is for many people...

The one caution I'd make: There's a learning curve to deal with. My observation is to make things really work well, you need to get familiar with industry stuff and then business stuff. And that takes learning time. BTW some of that learning time, you may have already "invested".

[SeattleCPA]

This will probably get me excommunicated from MMM forum, but here are my thoughts as to why, gulp, some entrepreneurs and small business owners should never retire or should retire not early but late:

Should Entrepreneurs or Small Business Owners Retire Late? Or Even Skip Retiring?

I can't imagine that I'll want to stop working even if I reached FI. I'm an entrepreneur at heart so just sitting at home isn't appealing to me.

A good friend of mine is in the same boat. He just left a senior executive position at a large company and easily has a net worth of millions and could retire now and enjoy time with new child and wife (who also makes a good living). Instead, he's working on a new business and seeking venture capital. He's like me in that he doesn't want to stop working - even if he can.

+1

Possibly someone needs to come up with a new acronym. Or maybe the label "entrepreneur" is enough.

[bradne]

I think most asphalt/paving companies probably do their own in house striping but I could be wrong on that I suppose. 

I like the utility line locating idea.   I have thought about this myself.  I would think insurance on something like that would be pretty high though.  If you miss something and an excavator slices through a fiber optic line (for example), you would probably be liable for a hefty amount.   Depending on your ability, I bet you could make some significant money though. 

[Smokystache]

Something engineer-y does sounds like a smooth transition. My sticking point is the billed $/ hr rate of engineering work and the marketing needed to obtain projects. Some of these other jobs/ businesses make money on equipment and materials, so you're quite often earning >$200/ hr (ignoring equipment costs). 

If you're looking to get away from a desk, then I can see why you're looking at some of these options. But if you're looking to make the best money for time and effort, then I would strongly recommend that you consider niching within your current expertise. A couple of thoughts:
- stop thinking in terms of billing based on $/hr. That is an employee mindset. Experts bill in terms of completed projects that provide huge value either because the work is very specific and/or very risky. There are several great books on value-based pricing.
- look around your field - who are the people who come in a provide a very specific task that an engineering company doesn't already do? What is a new sub-sub-field that is so new and hot that hardly anyone even knows what to do or how to find someone to do it? Bonus points if it doesn't require much specialized equipment. When you're the only person who does a specific task, you don't need to market, they will come to you.
- The reason why most of your colleagues don't do something like this is that they are likely paycheck-to-paycheck and don't have the time to see if it will work. You have that time and a desire to geek-out on something specific.
- The biggest shift will be in your mind. Going from "getting paid $300/hour would be great" to "My fee for that project is $178,000 and it will be done in 4 weeks and it is worth it because it will save you $2.5 million over the next 5 years. I only know one other person who does this ... and he's booked out for 2 years."

Of course, if you're burned out in your current field this is all moot. It can be really helpful to go to one of the larger conventions (old school) in your field and walk around and chat with small business owners who provide specialty services within a larger field.

[Sandi_k]

A couple more suggestions, based on our experience in a spendy neighborhood...

- Power washing. You can make $300 for a couple hours of labor.

- Fabricating downspouts - we had ours done by a mobile guy, who came to the house and made them/assembled them on site. We paid him ~ $2k for the day, and we were pleased because it was DONE.

[roomtempmayo]

I often drive by two different self-service car washes, and it seems like it could be a pretty great business model.

The better of the two has seven double bays for washing, with vacuums outside.  A typical wash probably costs $7-10, and they're always in use.  On weekends, there's often a line.  Quick Google research says the marginal cost of a wash is about 60 cents.  It could be netting a couple hundred bucks an hour on a weekend day.

There's some maintenance involved, but it's not a 40 hour a week job.  Checking in on your way to work in the morning and stopping by on your way home to do little tasks like garbage and checking the soap and equipment sounds like most of it.

I imagine the major drawbacks are the realities of owning any sort of public space in an urban area: theft, vandalism, someone deciding to take up residence, or general weird stuff that's tough to even imagine.  Or plumbing.  Plumbing always sucks.

Still, it's tough to get over the tough that these things could be absolute cash registers without all that much routine work involved.

[Michael in ABQ]

I often drive by two different self-service car washes, and it seems like it could be a pretty great business model.

The better of the two has seven double bays for washing, with vacuums outside.  A typical wash probably costs $7-10, and they're always in use.  On weekends, there's often a line.  Quick Google research says the marginal cost of a wash is about 60 cents.  It could be netting a couple hundred bucks an hour on a weekend day.

There's some maintenance involved, but it's not a 40 hour a week job.  Checking in on your way to work in the morning and stopping by on your way home to do little tasks like garbage and checking the soap and equipment sounds like most of it.

I imagine the major drawbacks are the realities of owning any sort of public space in an urban area: theft, vandalism, someone deciding to take up residence, or general weird stuff that's tough to even imagine.  Or plumbing.  Plumbing always sucks.

Still, it's tough to get over the tough that these things could be absolute cash registers without all that much routine work involved.

Self-serve carwashes are a dying breed. There have been probably 15-20 new express tunnel style car washes built in my city in the last 5-10 years. The self-serve car washes are generally in the poorer areas and in many cases have been torn down to build something more valuable like a fast food restaurant.

While it's possible to run one with minimal maintenance and on-site presence, it's not possible to run it well that way. Equipment breaks either from normal wear and tear or customers abusing it, trash, mud, etc. builds up. I think a lot of owners expect they could get away with minimal time involved and quickly realize that's not the case if they want to keep it running well.

[deek]

I'm exploring the possibility of trying out a vending machine or two as a side hustle option, and assessing whether it would be worth my time long term. I've learned a lot over the past week watching several videos.

It seems to be a business about connections, great service, and knowledge of machines.

Right now, I don't have the space to go ahead and start this up, unless I get lucky and find a couple good machines that exist on a solid route. But this is unlikely, as someone in this position wouldn't want to get rid of it. We'll see what happens.

I see some big players in the vending game recommending financing $4-5K machines (reliable brands), paying $150-$170 a month on them, placing them at a good location and making that $$ back every month and then some. But, much easier said than done it seems like.

[Michael in ABQ]

I'm exploring the possibility of trying out a vending machine or two as a side hustle option, and assessing whether it would be worth my time long term. I've learned a lot over the past week watching several videos.

It seems to be a business about connections, great service, and knowledge of machines.

Right now, I don't have the space to go ahead and start this up, unless I get lucky and find a couple good machines that exist on a solid route. But this is unlikely, as someone in this position wouldn't want to get rid of it. We'll see what happens.

I see some big players in the vending game recommending financing $4-5K machines (reliable brands), paying $150-$170 a month on them, placing them at a good location and making that $$ back every month and then some. But, much easier said than done it seems like.

Vending machines, like ATMs, are all about location. And the reality is almost every good location is already taken. If you can find a good location that's underserved - i.e. the machine is always broken or out of stock and the current operator isn't fixing it or stocking it you could try to step in and replace them. You could also try to find new locations such as a newly constructed or renovated building. Most of the best locations with a lot of people present are going to be in institutional settings like schools and that's a lot harder to get into than a one-off location like a small office building.

I'm not sure the investment in machines and time would be worth it if you only have 1 or 2. There are definitely economies of scale if you've got a route of 20-30 machines that you could just service all in one day once a week or something similar.

[Bamboo67]

The moment I think I'd love to retire already (mid 30s man), the more I realise that I'd just hate it due to boredom.

[solon]

The moment I think I'd love to retire already (mid 30s man), the more I realise that I'd just hate it due to boredom.

The beauty of it is, you don't have to be bored. You can do whatever you want, including work if that's what you want. And you can change activities (including work) as often as you want, and you can do as little or as much of it as you want.

Feel like a month backpacking through Asia? Do it.
Feel like a month helping a friend with a startup? Do it.
Feel like a month learning guitar? Do it.
etc...

[Dancin'Dog]

The moment I think I'd love to retire already (mid 30s man), the more I realise that I'd just hate it due to boredom.

Some people are just meant to work until they're too old to enjoy life.  It's okay.

[Villanelle]

This will probably get me excommunicated from MMM forum, but here are my thoughts as to why, gulp, some entrepreneurs and small business owners should never retire or should retire not early but late:

Should Entrepreneurs or Small Business Owners Retire Late? Or Even Skip Retiring?

I can't imagine that I'll want to stop working even if I reached FI. I'm an entrepreneur at heart so just sitting at home isn't appealing to me.

A good friend of mine is in the same boat. He just left a senior executive position at a large company and easily has a net worth of millions and could retire now and enjoy time with new child and wife (who also makes a good living). Instead, he's working on a new business and seeking venture capital. He's like me in that he doesn't want to stop working - even if he can.

This feels like a fundamental misunderstanding of retirement.  None of the retired people I know "just sit at home".  My parents are so busy it's hard to find a time to visit them, and when I do it's, "Just know what when you are here, dad has an HOA board meeing Tuesday afternoon, I have tennis M and TH mornings and we have tennis together Saturday morning.  Our bi-weeky neighborhood happy hour is W, but you are invited to that.  I canceled my bead club meeting, so we don't have to worry about that, but..."  And even when they are home, dad is making beer, mom is cooking for a sick neighbor, they are gardening, the dog gets several walks a day. They travel for 9-10 days a few times a year, often with friends.  There are volunteer opportunities and lunches with friends and Halloween parties and holiday meals. 

Of course, being FI and continuing to work--SWAMI-style--is a perfectly viable and respectable option.  But the notion that ending employment means sitting at home is just silly, unless that is what someone wants. 

[CatamaranSailor]

Personally, I'm considering the consulting route...

I know a lot about LMS's, online education and instructional design.

Someone once said "Everyone has at least one good book in them." I think everyone has at least one skill they can teach or sell to others.

My son is a mechanic, a farrier and is studying to be a controls engineer. He started a farrier business in college and was drowning in business.

I also like the building & trades. I know of a one man concrete pumping business in my neighborhood. The dude has a small, trailer pulled pumper for doing small jobs. He only works three or four days a week and is always booked.