Cash is what fuels your business, so mastering cash flow is a key challenge for all businesses. In any business venture cash flow is among the most important pillars for the success of your enterprise.
Early cash flow can come in handy as it helps cover things that allow your business to operate. From stocking up your inventory, paying salaries, utilities, rent and other expenses – cash flow literally runs your business.
Positive cash flow or boosting your cash flow early on in your business is critical for your success. It is a key driver towards meeting longer-term business goals.
Cash Flow vs Profitability
Positive cash flow means that you have more money going into your business at any given time than you do coming out. Having more money coming gives you operating expenses and allows your business to pay off debts. Positive cash flow also lets you know where you stand if you are planning to expand.
Profitability, on the other hand, looks at a bigger picture. Simply put, profit is what you have left after all of your expenses are paid for. Your business can be profitable without being cash flow-positive—and you can have positive cash flow without actually making a profit.
Many businesses make the mistake of spending without consideration for the future. Negative cash flow such as buying excess inventory can tie up cash in inventory and hamper short and long term business goals.
Maintaining a healthy cash flow can be elusive for small businesses. A solid cash flow will not only help you pay for everything on time but also allows you the ease to focus more on your business than paying debts. To avoid a cycle of debt and boost cash earnings some businesses rake in more money sooner than others.
Best Business Ideas to Make Money Sooner Than the Rest
It can take a while for your small business to make money, but some businesses can make money sooner. Here are the best business ideas to make money faster.
Franchising is a longer-term form of licensing. It is popular among service firms, such as restaurants and hotels to sell the rights to their brand and business model to third parties.
Franchising is seen as among the best business ideas to make money right from the beginning. The secret to franchising is that the businesses come with readymade operational models as well as brand awareness. This cuts through the process and time businesses spend developing and refining their operations.
A franchise also comes with a ‘playbook’ which is handy in driving sales while controlling costs as you have a business template to follow. This has allowed many franchisees to make an average of $60,000 dollars per year.
If you have an eye for composition, lighting or simply great shots, then photography might be your cup of tea. You can turn your creative outlet into a money-making business from your home.
Photography is a popular profession and hobby right now because camera gear is more affordable and consumer-friendly. Additionally, the availability of easy to use editing software is pushing more people to enter the industry. Photo editing software are plenty, ranging from decently priced ones to free options to give your pics a professional look.
Whether you have a passion for social events or corporate functions, photography provides many options. You can start your photography business by taking on your friends and family as your clients first.
To increase your visibility, post your work on social media such as Instagram and Facebook. You can also create your own website to help you increase your reach and grow your customer base. The perks include having your own studio at home as well as becoming the sole employee of your enterprise.
You can earn upwards of $34,000 per year depending on your workload, clientele and type of pictures you take.
However, people skills come in handy here as you need to get the trust of your clients by making them happy. This will eventually lead to more referrals and customers.
If you have a flair for enhancing the appearance of people, why not explore being a makeup artist. All you need is a high school diploma or a GED to get your certificate in cosmetology.
As a makeup artist, your creative imagination can bring out the best in your clients. You can accentuate their positive features while smoothing out any flaws they might have.
This is a great way to earn some good cash (averaging $46,311 per year) as well as increasing your business network.
With images now a key tool for communicating online, more people are looking to makeup artists to get a professional quality photograph. Makeup artists are also used in photoshoots, weddings, fashion shows and performances.
If your forte is creativity, organizing and communications skills, then event planning might be the best business idea to make money. Event planning does not require any strict education or training.
The key here is your ability to make connections with people and make sure your plan is executed seamlessly. If you need help in this department, a course on project management can help give you the edge you need.
The special events industry continues to grow and there’s a lucrative market awaiting you on many fronts. Individuals and companies often find they lack the expertise and time to plan events themselves. This is when planners can step in and give these special events the attention they deserve.
As an event planner, you have your pick on whether to work for either corporate or social functions. Corporate includes not only companies but also charities where you host gala fundraisers, receptions and other events. These events are used by these organizations to help them gain public support and raise funds.
Thousands of these events are held each year. Some might require specialized event planning experience but you can find smaller local events to start out with. You can start by first working from home and gradually scale up. This will come in handy if you are on a shoestring budget.
Providing errand services like picking up dry cleaning or groceries is an easy way to start a business. An errand running business solves problems for people or businesses who are too busy to carryout these tasks. This can be as simple as picking up or delivering items and go on from there.
Your services can literally be anything from picking up dry cleaning, shopping, delivery taking mail to the post office or even filling cars with fuel. Armed with a valid driver’s license and an insured, licensed vehicle, your errand services can be an easy path into entrepreneurship. However, in some states, you will be required to have a general business license to conduct business.
As entry to this business is relatively easy, you will, however, have to watch out for the competition. First, you will need to assess the market to see whether you have room to operate a profitable business. You will also need to devise a special offer for your clients to allow your business to grow in demand. Timeliness, dependability and trustworthiness are the hallmarks of a good errand service provider.
Child Care Service
Child care, also known as day care entails providing care and supervision of a child or multiple children. If you love kids, perhaps a child care venture might be the best business idea to make money.
As more and more Americans are taking on a second job, they are finding it ever more difficult to look after their children while they are at work. Child care offers parents the ease of mind that their children are well taken care of in their absence.
Child-care services can start from the comfort of your home offering opportunities for people to earn a median income of $9.81 per hour. Child-care services offer flexibility when it comes to the services you choose to offer and improve your cash flow.
You can start a child-care business easily in your home with just a few weeks of planning and a modest amount of startup cash. You can start a one-person operation with yourself at home and generate a comfortable income. If you have your own children, then you have the bonus of spending quality time with your children as well.
You may limit your clientele to children in certain age groups or tailor your operating hours to meet the needs of a particular market segment. Provide additional perks such as transportation between your center and the children’s homes and/or schools.
You need to be a people person, have a high tolerance for stress, have good insurance, and some management skills.
If you have mad writing skills, then a handy laptop is all you will need to venture into freelance writing.
With your writing business, you can offer your services to companies on a freelance basis. By producing content on demand from clients you can test the waters by first looking at side gigs.
Though seasoned freelance writers admit they make a good living out of it, it still requires a lot more hustle than working a typical job. With many freelance writers earning 17 cents per word, the volume of work coming your way however will not always be consistent.
House painting offers minimal financing to start up. However, a good painting job requires practice, precision, and patience. You can start your paint job as a part time gig and gradually build it up offering your services to homeowners, builders, landlords or interior designers.
Your work might be seasonal and fluctuate with the health of the economy. You can acquire the tools of your trade such as paints, cleaning solutions and brushes from any hardware store. The average pay for a Painting Contractor is $40,976 per year.
If you have a green thumb perhaps landscaping is your thing. You can offer services that include mowing the lawn; weed trimming; planting flowers, and trimming hedges and trees.
With experience, you can expand to designing lighting, patios, decks and walkways. Landscaping business owners earned anywhere from $5,000 to $50,000 in their first year and as much as $160,000 to $250,000 once they were in business a few years.
Food Truck Business
If you love to cook, you should consider opening a food truck. Food trucks can help you earn a decent amount of money with steady cash flow.
However, this can take up a huge chunk of your time because you will have to work six to seven days a week. The success of your mobile business relates directly to the amount of time and effort you put into running it.
Owners of food truck businesses often earn an average monthly revenue between $5,000 – $20,000.
Cash flow is important, as it shows the financial state of your business. But not all businesses are able to generate this cash flow immediately.
If you want to start bringing cash in right away, the opportunities mentioned above are some of the best business ideas to make money.
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