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A few years ago, the IRS released data stating that the average millionaire had not just one source of income, but seven. There’s been some buzz since then about the types of income that can increase your overall wealth. One of these channels is owning a separate small business to add to your normal paycheck.
You may ask yourself: could a second business really be worth the time and energy it would cost to get it up and running? Or, how could you manage the running of a second business with a full-time career? Although no business is completely hands-off, many side hustles require significantly less effort as they may be online, home-based, or brick and mortar with staff in place.
Here are 3 reasons why purchasing a smaller business as a side hustle is way more accessible—and lucrative—than you might think.
In order to fully replace a six-figure salary, you’ll need to put in six-figures when purchasing a business. But, if you’re looking for an income stream that won’t be a full-time gig, the cost drops substantially. Inexpensive small businesses are way more plentiful than you may think. As a new owner, you can enter the market with an investment of just $50-$70K. In addition, if you have another source of income, it is much easier to get bank financing for your business.
And because these businesses are already up and running, you won’t be spending tons of time, energy, and money trying to get momentum. Small side hustles often come turn-key ready, and sellers can provide sales records that help you estimate your future income. You should see a return on your investment fairly quickly, while you have the opportunity to grow the business with good staff already in place.
Worried that you live in an area saturated with would-be entrepreneurs? Owning a small business doesn’t have to be an eBay shop or a cookie delivery company. If that’s what you’re interested in, a reputable business broker can help you find one to purchase, but there are many options across the board ready for you to buy. Right now, Transworld has local listings for a home-based blind cleaning service, water filtration business, a chocolatier, and an ink and toner company, among others.
If you have a certain skill set, or even a hobby you’ve always wanted to pursue, that could be a good fit for a side hustle. However, you don’t need insider knowledge. You can also view a second business solely as an investment rather than a passion project. And if you’re looking for name-brand appeal, inexpensive franchise options are available, and we represent over 350 various brands.
One of the most attractive things about these small businesses is that you won’t have to be there full time. When you use an experienced business broker, you’ll purchase a fully vetted and healthy business that is often fully staffed. The average small business owner makes around $70k a year, and there’s always potential for growth (if you want it)!
While you’re still heavily involved in your career, a side hustle is a fantastic option for a family approach to business. It can provide jobs for your children and relatives (or even the neighborhood kids), and once you are retired, you can remain as active and involved in the day-to-day as you’d like.
Purchasing a small business is an investment in your future. Whether or not you reach millionaire status, diversifying your income can provide shelter during hard times and economic uncertainty, while enabling you to offer jobs and service to your community.
Interested in learning more? Contact us by clicking HERE for a free consultation on what might be a good fit for you.