business with good cashflow

Hi can anyone advise what is a good business to purchase for cashflow.

I was thinking of newsagency or post office or something which has a demand and good profit potential.

any ideas?

Not sure about post office, but with newsagencies you're looking at 30% of revenue being profit. So say you turn over 500k a year, that's 150k in your pocket. One thing to note about this business is that every dollar counts and adds up - it's a cash business and many operators don't report their true profits (I don't endorse this behaviour, of course).

HTH

DG

What about a coin laundry.. About 60K to set up and good in areas with large population in units near by.

That is interesting- I notice News agencies often seem to be purchased by middle aged people- probably early retirees or summit. The other thing I notice is that they always seem to be such a sour bunch of old curmudgeons who run these newsagencies. Dunno why this should be if the profits are so good [yes I know they have to rise early etc-- most people who want to make a bob or too have to work long hours]-- I have noticed this peculiarity of news agent proprietors over many years. I am always sympathetic to shop assistants as standing for long hours must be trying not to mention difficult customers( I am not one of those!) Maybe they bought in view of an easier life syle and find even though profits are good work still needed- Ah another of Lif'e' conundrums.

Interesting you mention laundry islandgirl, I'd thought of same thing, but haven't researched it yet. I didn't reaslise 60k was enough to set up, cheaper than I was thinking (some had told me the industrial machines are very expensive but I have no idea).

What do you think about the downside, such as vandals, people washing dirty nappies/soiled things etc.?

Any idea of the profit making potential?

Thanks :-)

Hi Tiiu & others,

I've been trying to find a business idea as well. Seems to me that a lot of good ideas on this site about building wealth with combination of real estate + shares but ultimately cashflow will become the limiting factor in how far can build this up? Hence a cashflow business a useful thing :-)

I've started to look at internet based businesses, some I think that have merit are information delivery businesses and ebay. I don't know much about them, but the theory is worth thinking about... if they are time efficient you could try to run several of them at once. Could have multiple streams of income and still not have to work full time to achieve it. That's what they say at seminars anyway :-)

I don't know if these really work, seems to me there is massive competition, but then again there are an awful lot of potential customers.

Of course can hear the amazing success stories where someone is making an absolute fortune out of these things, but not sure if they are able to be proved, or if they have other related businesses they don't mention (maybe have cross-selling between their businesses, or have retail shops, or do speaking seminars etc.)

Anyway, another avenue to explore if it appeals.

PS - if anyone has any experience of internet bases business I'd love to know how you got on, if made some useful money.

Thanks :-)

Triu, apologies, I mistyped your name in earlier post... sorry...

Ilori you can do an internet search for coin laundry's in Australia and there are a couple of good ones that sell the laundry equipment, some even have lease options and rent options to defray your cost. I guess it all depends on location mainly and researching your market.

As for the internet business, I have tried one and marketing and getting your name out there is difficult. Its not as simple as just building a site and waiting for customers. Ebay fees are ridiculously high and getting higher daily. It is a low cost alternative to start off a good business idea and test the market however your profits are quickly eroded by Ebay fees, seller fees, paypal fees, listing fees... the list is endless.

Don't know how you come up with 30%. I believe the industry average is about 9.5%, however it would be a fairly sad newsagency to only be turning over 500K.

So if you bring the turnover up to around 1.5MIL the end result would be about the same.

By the way I happen to know where there is a good one for sale if anyone is interested

With Newsagencies I think these days it is the lotto agency that is the huge money spinner - like pokies in pubs.

Cheers