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:

  1. Market Research: Evaluate local demand, competition, and potential locations for each business type.
  2. Feasibility Study: Conduct detailed cost analysis and potential revenue projections.
  3. Funding and Financing: Secure funding through savings, loans, or investors.
  4. Business Plan Development: Create comprehensive business plans for each venture, including marketing strategies and operational plans.
  5. Implementation: Begin the process of purchasing or building the chosen businesses, ensuring all legal and regulatory requirements are met.