Author Topic: Passive Business Investment Ideas to Diverse Income Streams  (Read 1502 times)

Indio

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Passive Business Investment Ideas to Diverse Income Streams
« on: February 07, 2017, 02:52:08 PM »

I'm interested in hearing about your experiences and the businesses that you've invested in, but are not yours or are run by someone else. This can be small amounts of seed capital to help get it started or can be more mature businesses, like a franchise. I know a lot of folks on this forum invest in real estate and index funds, but I'm curious what people have done outside of those areas.

What type of business have you invested in ?

How much capital did you put into it?

What's your goal -- profit sharing, income, helping family, growth, etc? Did it help you diversify income streams?

Would you do it again? What has worked and what hasn't worked?

Cwadda

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Re: Passive Business Investment Ideas to Diverse Income Streams
« Reply #1 on: February 07, 2017, 02:57:43 PM »
I think lots of businesses that get started by running can be turned in passive. Very few businesses are passive right off the bat. I think if you find something you truly enjoy it makes the journey to passive income a whole lot easier.

I'm starting a real estate business. My starting capital is around $20,000. It will require me to act as a property manager until it approaches the point at which I can pay someone to do the property management. The business will aid in providing passive income, which helps towards FIRE.

SeattleCPA

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Re: Passive Business Investment Ideas to Diverse Income Streams
« Reply #2 on: February 09, 2017, 06:18:41 PM »

I'm interested in hearing about your experiences and the businesses that you've invested in, but are not yours or are run by someone else. This can be small amounts of seed capital to help get it started or can be more mature businesses, like a franchise. I know a lot of folks on this forum invest in real estate and index funds, but I'm curious what people have done outside of those areas.

What type of business have you invested in ?

How much capital did you put into it?

What's your goal -- profit sharing, income, helping family, growth, etc? Did it help you diversify income streams?

Would you do it again? What has worked and what hasn't worked?

Okay, first, I assume you're from Indio. And I love Indio. I've spent many a warm day quaffing cold ones at the Tack Room.

Second,  IMHO, I don't think your plan is workable. Let me say that I wish it was...

What you're contemplating is what the endowment funds do with a big chunk of their money... the part they put into private equity (including venture capital funds). On average, those investments may actually lose money. You maybe only beat what you'd get in an index fund if you get into the very best private equity deals. And regular folks aren't going to have that option.

The one exception that you and I have is to actually own our own business. And run it ourselves so the thing runs right. BTW, I would say that the way many MMMers approach real estate is as if it's really a small business...  and they should get an alpha return too.

SeattleCPA

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Re: Passive Business Investment Ideas to Diverse Income Streams
« Reply #3 on: February 09, 2017, 06:44:59 PM »
BTW I didn't really answer your question... but this might be interesting...

http://evergreensmallbusiness.com/your-real-odds-for-business-start-up-success/

And this discussion of the profitability of a liberty tax franchise might help you further mull over the idea of a franchise:

http://evergreensmallbusiness.com/lessons-from-liberty-tax-service-part-1/

joonifloofeefloo

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Re: Passive Business Investment Ideas to Diverse Income Streams
« Reply #4 on: February 09, 2017, 07:02:04 PM »
What type of business have you invested in ?

How much capital did you put into it?

What's your goal -- profit sharing, income, helping family, growth, etc? Did it help you diversify income streams?

Would you do it again? What has worked and what hasn't worked?

I'm not sure if I'm understanding your initial question. Maybe my answer doesn't fit? Mine is about investing up front, and ultimately becoming hands-off, but in my own gigs.

Writing.

I've had great success with some projects, and (so far) zero with one.

The ones I put 0-$300 of cash in have made lots of real money; the one I put $4k into is $4k in the hole. So, each project is a great risk of at least time and effort, and in some cases of money. But overall it's worked out very well.

This business has definitely brought income diversification, and that helps me financially as well as to sleep soundly.

My goal is always first to help others, second to generate funds.