Even if your business is currently doing well, it’s always good to have another business. Don’t put all eggs in one basket, as the saying goes.
Maybe you think you don’t want to put in that much effort in another business anymore, thinking back to when you started. But you don’t need to open another full-blown business. Go for passive sources of income. Be on the lookout for these opportunities:
Bargain real estate
Don’t limit yourself to properties with already built structures. Often, there are good deals on land that is yet to be developed. It’s often cheaper than properties with buildings, and you won’t be limited to the developer’s building intention and design. You could snap up land for sale even if your intended development plan isn’t within a decade. If it’s a good location, it will appreciate even without built structures.
When looking at available properties, don’t only look for the cheapest in the market. Think ahead. If there are planned developments in those areas, they would appreciate fast.
However, do proper research. Make sure these properties that have dropped prices are not affected by calamities. Development plans might also be cancelled because of climate shifts. Some properties, for example, might suddenly experience recurring flooding. Prices of these properties could drop fast. That’s an indication to stay away from these deals, or you could look into a cost-efficient mitigation plan.
Assess if there would still be economic activities despite the calamities. For instance, if it’s already a thriving business district, people will still likely go to these areas despite recurring floods. They would avoid shopping when there’s a heavy downpour. The local government agencies might already be planning to make some mitigation efforts. But you could also do your assessment. Can you afford to close shop when natural calamities occur? Sales may go down during this time, but the revenues you would get for the rest of the year might make up for it.
Health-related business opportunities
Although as people get on in years, they start shifting to a healthy lifestyle, the sins of the past won’t be easily erased. With generations overworked, some leading sedentary lifestyles with unhealthy habits, a large portion of the world’s population is prone to different illnesses and will be dependent on medical facilities for years to come. Check if there are hospitals that are planning to expand. They usually get their capital by selling shares.
Selling health insurance is also a good side income, especially in countries where government health services are inadequate.
Investing in education
Education will also remain a viable business. There are small schools that have different specialities. There are those for differently-abled children. Some employ the Montessori-style of teaching, which has become quite successful, and they might be looking to expand or set up a similar school in a different area.
You could also invest in supplementary businesses like tutorial centres, review centres, training institutions. As the population gets more competitive, these establishments are becoming more in-demand. Tutorials are not only for slow-learners nowadays but also for students who want to be top of their classes. These kinds of businesses are also not limited to their physical locations, as many are now offering online classes.
Look for popular food businesses that are just starting to open to franchising. They would be a fraction of the price of established food chains. They could be food stalls at a university or a park that’s popular with students or hole-in-the-wall places that serve unique drinks.
As its popularity is still localised, it would do well to locate your franchise within the city where it started to boom. You don’t need to conduct extra studies about population preferences and existing competition.
Complement your business
Look for anything that would complement your existing businesses. For example, if you already have a food business, you could look at a separate business on delivery services. It could cater to your food business but at the same time accept deliveries for other restaurants.
You could also look at farms to directly supply what you need in your restaurant. That way, you cut your costs by having your source of raw ingredients, and at the same time, you could also sell your farm produce directly to the market or other restaurants.
What’s good about making investments beyond your main business is that you already have experience. You would know how to deal with the fluctuations in the market. There will also be services that could be shared among your investments, such as the cost of getting a legal retainer, maybe an outsourced finance manager, and even a marketing team.
So once your business starts turning up constant profit, it’s time for you to relax your focus and look for other opportunities.