Do you want to make life more comfortable by having lucrative cash cows? Yes, you can. A cash cow is a business or venture that you can begin with no much investment. It may be slow, but it inevitably brings much profit in the long run. Cash cows bring much income than what is required in starting or used in maintaining the venture, which is ideal for business-starters.
As they are popularly known, multies are the ability to get various streams of income that covers all commercial areas from the residential to industrial-aspect to regular involvement. One fantastic thing with cash cows is how the right knowledge and constant practices can make it quite easy, thereby resulting in lucrative streams of money for you.
When starting multiple streams of income, you have to consider the procedure, protocols involved, which includes getting in touch with your local authorities if need be. One crucial way to be active with multies is to ensure its cash flow can adequately sort out debt. For instance, if a landlord or a landowner decides to build another house, it should be for a short-term purchase or hire purpose. This is to give room for constant reselling of home instead of just getting incoming cash.
Resale of buildings will help cover the debt of other valuable properties, thereby keeping debt on land assets low. So, whenever you want to purchase land, and you build two houses, ensure you put one of your homes for sale, thereby paying your debt for the first house and still keep the profit.
- One- Person Student Housing
Rather than have different rooms in your home without being useful, it is wise to turn those number of rooms into assets to make money for you. There are many people in need of accommodation out there.
There are cases whereby the returns increase, especially in dealing with property management cost for the family. Save more and earn more by giving out those rooms for rent. Moreover, do it with legal backings and cautious practices.
- Side income from Granny flats
You can make extra money by renting out your granny flat or other small space/apartment on your property which you don’t need, and profiting from using space you would not be otherwise using.
The Government of New South Wales States has given investors the privilege to make use of old-looking houses also know as Granny flats for revenue purposes. The Government of The Queensland is also involved in this unique idea to harness every available human-made resources as well as for a steady flow of income for the government to meet the basic needs of the people which shelter is one of the essential requirements.
- Trading/Commercial Cash cows
These are ventures done regularly for profit making, so whether they are full commercial or partly investments, these type of businesses come with high risk as there are other issues involved such as hygiene regulation, safety rules, and the likes. The chances are always on the owner and not the customers. For you to benefit from this type, for instance, if you are to build a house, it’s best to rely on an already made structure so that the risks are minimized.
This type of cash cow is easy to maintain if situated at a commercial zone. Most developers do not see the need to structure a property used commercially to save cost. For starters, ensure the car-parks are in areas where they can be utilized consistently.
Daily, businesses require a storage facility to keep their goods in stock. Any location of choice can be used for warehouse construction, but it is recommended to build a warehouse or a storage facility in areas where they are most needed. Like the seaports, markets. To get a flow of income regularly.
- Hire Accommodation/motel/Housing
Hire Accommodation/motel/Housing is also one of the oldest yet effective cash cows, that brings in constant cash flows. It varies from the almost high-class style of accommodation that has every supply needed in the home to the low class. Some may not have a cleaner in view most times when looking for shelter. If you are to venture in this type of business, you can get an experienced agent manager who will require a commission for each work carried out by them.
Handling this type of business also requires getting a website to stand out as a professional to corporate bodies, communities, and local government areas. This will ensure your business sounds legit and convincing to be patronized. If getting a website is time-consuming for you, you can place adverts on other related housing websites like stayz.com. They charge a token for each rental.
Moreover, adding cleaning charges and other additional charges will not affect your profits.
This type of business is for risk-takers and for those who can quickly strike a profitable deal with clients. Peradventure you fall in this category, and then take the lucrative opportunity in this business. This business is all about getting a property at a more affordable lease price and reselling the same property at a higher price. This is mostly used for commercial purposes and in places with massive lands. Some areas like Australia may not be fit for this type of business. Nonetheless, it can bring an increased source of income when done commercially.
- Wrapping Means
Wrapping is a case where an asset is bought at the market’s lower end to another person who may not be able to pay off alone except through financial institute support, then they later payback the loan with an agreed interest rate. This allows competent buyers who are not financially stable to buy an asset with the help of financial institutions as the bank.
It also implies that suitable buyers (business starters, sole proprietors, divorcees) are not only judged by their financial pocket alone but by their commitments.
- Industry Specific Investment
Industry investment is one of the cash cows to go into. However, some investors who have seen the light of profitable cash flow only restrict their reach to some specifications such as student’s accommodation, retirement funds. For you to enjoy the benefit of investing in the industry area, commercial areas that involve natural resources industries such as steel industries, quarries mines, transportation services, and much more should be harnessed.
The chances of getting more customers and sales will be slim when you go for properties/investment with restricted usage like the pensioner funding. Another challenge with this venture is the difficulty of lending finances. As this is a known cash cow that can be restricted if not adequately handled. Diligence is needed in this type of business to get your profit.
Cash cows are long- term businesses that can make your liability become more of an asset to you and bring more income along the way. This also indicates that for every business to thrive, dedication and commitment is required, whichever activity you choose to go into, ensure you are knowledgeable about the company to avoid unnecessary risks and losses in your business. It is also pertinent to know the technical know-how of a business. Learn from others who have been in your choice of company to emerge the best in your choice of cash cow ventures.