Seven Ways Entrepreneurs Can Create Extra Income

Seven Ways Entrepreneurs Can Create Extra Income

In case you are running a business online or offline, and you find yourself short of cash from time to time, you need to have a plan to deal with money emergencies. You don’t want to spend money on business loan interest, and if you know that you have to wait for your money a few months, and still have to pay your rent and wages, you should have something to fall back on, apart from your personal savings.

If you plan ahead, you can cover slow business months and create a residual income you can rely on when you are waiting for your invoices to be paid. Below you will find nine investment ideas that will help you solve temporary cash flow problems.

1.   Property Investments

If you have enough money to invest in properties, and you don’t need any further business assets, you might decide to buy property and create a residual income from rent. This way, you can have extra cash in the bank each month, and avoid short term money problems. No matter if you decide on buying a house or an office building you can easily rent out to other people, you will get a good return on your investment, without having to work extra hours. If property development is not for you, buy ready to let out condos and offices, and list them as assets in your building. If you are currently renting a business space, think about getting a building that can be split into multiple units, so you can operate rent free, and get an income from tenants.

2.   Usage Rights

If you have an invention that you are using every day in your business, and it is patented, you can offer the usage rights to other companies. This way of creating extra income doesn’t require a lot of effort, and you can maximize your profits from your intellectual property rights. Think about a business process or software you invented to improve your business. Do you think that other entrepreneurs would benefit from using the same system? If the answer is yes, it might be time to create an offer and share the knowledge for a healthy residual income.

3.   Subcontracting

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If you face quiet months from time to time, and you still have to pay your employees, you can carry on going by looking for work from your competitors. Companies with similar profiles carrying out the same activities as you might need help completing their orders. They might be short of staff, or have an extremely short deadline to meet. No matter what their situation is, you can take advantage of it. Just because your particular business area is not busy at the moment, others might be struggling with orders. Get in touch with companies and ask them whether or not they would consider working with you on a contract basis.

4.   Currency Trading

If you are brave enough to risk your investments, you can easily realize huge profits. You might not need to do the work yourself, and for a decent commission, traders will be happy to maximize the return on your investments for you. You need to bear in mind that this method doesn’t guarantee a profit, and you might even lose money. The monthly profits from currency trading, however, could cover your costs and keep you afloat when your business is not doing so well.

5.   Creating Membership Offers

If you offer services for companies or individuals, you might consider creating a membership product that gives them unlimited access to all you have to offer. For example, if you charge $100 for a business coaching session, you can create a membership offer with unlimited access and 3 meetings a month for $1000. If people are happy to use your services and can see the benefit of working with you, you will find that getting only a few signups can help you manage your finances better. You might need to spend a few hundred dollars on developing the offer, but in exchange you can create a residual income for your business.

6.   Loaning Out Equipment

If you regularly have cash flow problems, and experience a fluctuation in the amount of work you get, you might decide to loan your machinery out to other businesses at a daily rate. This way, you can get money to cover your wages and rent, and overcome cash shortage. This temporary solution can help you through bad phases in your business. Instead of reducing your capacity and workforce, you might even decide to loan your employees out temporarily, to save their jobs and carry on paying their wages. Bear in mind that if you have equipment unused for a long time, and more staff than you need for your general work, you will need to think your business model through.

7.   Easy to Liquidate Stock

Another easy way of dealing with cash shortages is to invest in stock that is easy to liquidate at a high profit margin. For example, if you know which products will be popular for Christmas, you can buy them bulk in the Spring at a low price and sell them when they are in demand in just a few days. You will need to know your market inside out if you would like to use this method, or you will end up paying huge storage costs. Make sure that you only invest in stock that you know will sell easily and one that will increase its value over time. Avoid technology that is likely to be replaced by a new model in a few years.

 

The main reason most startup businesses fail is cash flow problems. If you want to survive challenging financial periods, you will need to have a Plan B. With the above clever investment methods, you can guarantee residual long term income and returns on your assets, so you can carry on trading until you change your strategy and learn to manage your finances better. Use them for short term, but if you carry on experiencing  cash shortages, sit down and think strategy.

 

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