CASHFLOW
Diversifying into Cashflow Positive Businesses
1. Car Wash
Business Model:
- Automated Car Wash: Customers drive through an automated system that washes and dries their car. These can range from basic wash services to premium options including waxing and detailing.
- Self-Service Car Wash: Customers use provided equipment to wash their own cars, usually coin-operated.
Average Cost to Buy One:
- Automated Car Wash: $500,000 to $1.5 million
- Self-Service Car Wash: $200,000 to $400,000
Cost to Build One:
- Automated Car Wash: $2 million to $5 million, including land acquisition, construction, and equipment.
- Self-Service Car Wash: $500,000 to $1 million
Average Monthly Return:
- Automated Car Wash: $10,000 to $20,000 (depending on location and traffic)
- Self-Service Car Wash: $5,000 to $10,000
2. Laundromat
Business Model:
- Self-Service Laundromat: Customers use coin-operated or card-operated washers and dryers. Additional revenue can come from vending machines, Wi-Fi, and other convenience services.
- Wash-and-Fold Service: Laundromats can offer additional services where staff wash, dry, and fold clothes for customers.
Average Cost to Buy One:
- $200,000 to $500,000 (including equipment and leasehold improvements)
Cost to Build One:
- $300,000 to $1 million (including commercial washers, dryers, and infrastructure)
Average Monthly Return:
- $5,000 to $20,000 (depending on location, size, and additional services offered)
3. Vending Machines
Business Model:
- Product Vending Machines: These machines dispense snacks, beverages, and other small consumer goods.
- Specialty Vending Machines: Machines that offer specialized products such as electronics, personal care items, or even fresh food.
Average Cost to Buy One:
- $3,000 to $10,000 per machine (depending on the type and sophistication)
Cost to Build One (Network of Machines):
- $50,000 to $200,000 for a network of 10-20 machines, including setup and initial inventory.
Average Monthly Return:
- $200 to $1,000 per machine (depending on location and product type)
4. Parking Garage
Business Model:
- Hourly/Daily Parking: Charging customers for hourly, daily, or monthly parking.
- Event Parking: Higher rates during events.
- Additional Services: Charging stations for electric vehicles, car washing, and detailing services.
Average Cost to Buy One:
- $1 million to $10 million (depending on size and location)
Cost to Build One:
- $10 million to $30 million (including land, construction, and infrastructure)
Average Monthly Return:
- $20,000 to $100,000 (depending on location, size, and demand)
5. Self Storage
Business Model:
- Unit Rentals: Renting out storage units of various sizes on a monthly basis.
- Additional Services: Selling packing supplies, providing moving truck rentals, and offering climate-controlled units.
Average Cost to Buy One:
- $1 million to $3 million
Cost to Build One:
- $3 million to $5 million (including land, construction, and unit setup)
Average Monthly Return:
- $10,000 to $30,000 (depending on location, unit occupancy, and additional services offered)
Summary of Financials
Business Type | Average Cost to Buy | Cost to Build | Average Monthly Return |
---|---|---|---|
Car Wash | $500K - $1.5M | $2M - $5M | $10K - $20K |
Laundromat | $200K - $500K | $300K - $1M | $5K - $20K |
Vending Machines | $3K - $10K/machine | $50K - $200K (network) | $200 - $1K/machine |
Parking Garage | $1M - $10M | $10M - $30M | $20K - $100K |
Self Storage | $1M - $3M | $3M - $5M | $10K - $30K |
Next Steps:
- Market Research: Evaluate local demand, competition, and potential locations for each business type.
- Feasibility Study: Conduct detailed cost analysis and potential revenue projections.
- Funding and Financing: Secure funding through savings, loans, or investors.
- Business Plan Development: Create comprehensive business plans for each venture, including marketing strategies and operational plans.
- Implementation: Begin the process of purchasing or building the chosen businesses, ensuring all legal and regulatory requirements are met.