7 Passive Income Ideas to Boost Your Small Business

Across the globe, small businesses play an essential role in spurring economic activity, often offering consumers vital services in their local vicinities. Be they newsagents, grocery stores or internet cafes, these enterprises also shape our communities by employing local residents and establishing a deep connection with their customer base.

This close proximity with the public provides small businesses with some key advantages. As the owner, you have the creative freedom to innovate and adapt your offering to better meet your customers’ needs and enhance your earnings.

With that in mind, let’s explore some curious ideas that could boost your income, while at the same time, allowing you to keep your core focus on your small business.

1. Rent out unused space

One of the biggest advantages of being a small business owner is the fact you have your own entity and are likely able to manage your retail space. If you have any unused storage space, vehicles or parking slots, consider renting them to other businesses in the area. Even if you use every inch of your premises, purchasing and then renting storage units can also translate into a steady stream of passive income. Unlike other real estate, these units have low operational costs and require very little maintenance. Before taking this step, be sure to analyze the local area. Typically, neighborhoods with a high apartment ratio tend to have a much higher demand for storage units.

2. Become a money transfer agent

With more people living outside their native countries than ever before, the need to send funds and support families and communities from abroad is steadily growing. In this sense, becoming a money transfer agent would not only boost your income but also provide a valuable service to migrants in your local area.

Becoming an authorized agent doesn’t require financial investment or lots of preparation. At Ria, we provide first-class training to ensure that all our agents are fully equipped to perform international transactions as well as offering continued support, including multilingual assistance. Additionally, Ria will actively promote and advertise the service on your behalf, helping you attract more customers.

Once you’ve established yourself as a money transfer agent, we recommend you use our custom-built Monthly Earnings spreadsheet to keep track of not only your commission fees but also your expenses and other sources of income.

3. Invest in laundromats and vending machines

Another popular source of passive income is placing laundromats in your store. Given the fact we always need clean clothes, these self-service facilities can provide you with year-round income. Better still, washing garments is not a quick process. While waiting, customers have time to browse and potentially purchase other products in your store. For this reason, contemplate adding vending machines to offer these consumers coffee as well as other snacks.

4. Become a drop-shipping point

Alternatively, if you have no excess space to utilize, you could develop a dropshipping business. Importantly, dropshipping doesn’t involve keeping any products at your business location. Instead, the role of the small business owner is to highlight products, either online or in their store, and then place orders with the supplier depending on demand. Upon receiving an order, the supplier will then ship the product directly to the customer.

This process, in effect, removes many of the challenges that typically come with running a small commercial enterprise, allowing you to expand your product range without large-scale investment. If you have a strong relationship with your customers and a good understanding of their needs, then dropshipping could become a reliable source of passive income.

However, before setting up, be sure to choose your suppliers carefully. As the seller, you will need to provide ongoing customer support, including organizing any refunds or product returns as well as resolving any supply chain issues directly with the wholesaler.

5. Take on side projects

With millions of companies adopting digital platforms during the Covid-19 pandemic, there is currently a huge global demand for skilled freelance workers. While strictly speaking not a passive source of income, freelance projects can help you harness your creative skills and earn additional funds, particularly during known quiet periods with low customer footfall.

Platforms like Freelancer and Upwork are full of creative writing, graphic design, web development and video editing tasks for freelancers to take on. Alternatively, consider longer-term side hustles that you could later convert into passive income. For instance, if you’re knowledgeable about a particular subject or have some amazing stories to share, consider producing an e-book for avid readers. Growing in popularity, e-books are relatively inexpensive to publish and the royalties you receive from sales could provide you with passive income for many years to come.

6. Sell products online

Sales shouldn’t be limited to those made in your store. Increasingly, consumers are buying more and more online with the eCommerce industry expected to be worth $9.3 trillion by 2027. Having your own online presence will enable you to highlight your existing products, including any leftover stock, to a much wider audience.

Equally, having a digital footprint would also help you set up a print-on-demand store. Typically, these online stores contain unique designs that can be placed on plain t-shirts, posters, cups and backpacks among other items. Similarly to dropshipping, this model allows you to offer customized products without the need for large amounts of capital or considerable storage space. Customers simply purchase a product on your website, automatically placing an order with your supplier, who will then add your design to the desired plain item and deliver the product directly to the customer.

7. Engage with the digital community

When introducing new sources of income, one of the biggest challenges small business owners face is maximizing the potential revenue, while at the same time, continuing to deal with the natural ebb and flow of customers visiting their store. In this sense, it is helpful to have paid online activities that you can pause at a moment’s notice. For instance, completing online surveys can provide you with a little extra money every day without heavily disrupting your core activities. InboxDollars and SurveySavvy are just a few examples of websites that offer payment for completed surveys.

Bonus tip: Put your money to work

Given money tends to lose value over time, consider investing any spare capital into either stocks, bonds or mutual funds. In essence, investing can boost your income in two ways. For instance, some investments offer dividends, regular payments made to the investor based on the performance of the asset. However, most investments simply appreciate as time progresses, helping you accumulate long-term wealth. For example, a standard $100 investment in corporate stocks in 1970 would have surpassed $22,000 in 2023.

At Ria, we understand the importance and impact small businesses have on our local economies. Their success helps our customers’ communities thrive, resulting in greater purchasing power, healthier households and better educational opportunities for children. By diversifying your small business and becoming a money transfer agent, you can help facilitate the flow of crucial funds from migrants to their loved ones back home.

Interested in becoming an authorized Ria agent? Visit our website to learn more about the great benefits of working with us and the steps to follow.