Disclaimer: Information in the merchant cash advance articles is provided for general information only, does not constitute financial advice, and does not necessarily describe Biz2Credit commercial financing products. In fact, information in the merchant cash advance articles often covers financial products that Biz2Credit does not currently offer.

Cash flow is used internally by small business owners to accurately assess the monetary value of their investment. A company’s cash flow is used to quickly assess the business’s ability to pay its bills and meet business needs. And some businesses are notoriously known as great cash flow business ideas over others.

Third-party agencies or individuals that may also request information about a company’s cash flow management include lenders, investors, the Internal Revenue Service (IRS), state taxing authorities, suppliers, and executive consultants.

The cash flow statement is used along with the company’s Balance Sheet and Income Statement to analyze the business’s financial health. The goal for any business is to have positive cash flow, and get it to a point where it can be a steady cash flow.

There are three types of financial transactions reported on a statement of cash flows.

1. Operating activities – The operating section shows the cash flow that results from daily operational activities, like income received and ordinary business expenses, like payroll and supply costs.
2. Investing activities – This includes funds coming in and out of the business.
3. Financing activities – The change in cash from selling fixed assets, collecting on long-term notes, and debt arrangements or any type of small business loans.

The sum of all the money involved in the three types of activities gives the net change in cash. A positive number for the net change in cash shows that the business is ending the accounting period with more money than it had at the beginning of the period.

What are some good cash flow business ideas?

Accounting

A great cash flow business idea is starting a remote accounting or bookkeeping business. It is a low-investment business idea focused on providing online professional services, like accounting. Entrepreneurs can choose to work alone as a freelancer helping a few clients out with their income tax returns or bookkeeping or hire a team of accountants to perform full-service outsourced accounting services to other small business owners.

Graphic Design

Like accountants and other professional consultants, graphic designers can make a lot of money creating websites, designing logos, printing business cards, and even selling online courses about their trade. There are very little startup costs for graphic designers with their most costly expense being the initial investment of necessary computer hardware and software.

Affiliate marketing

Affiliate marketing is a great cash flow business idea for social media bloggers, influencers, or other online content creators, including those with a YouTube channel or a private podcast, to build a constant source of passive income. With almost no startup costs, affiliate marketers simply promote other business owners’ products to earn a commission on sales and can work with SEO experts to increase their web traffic and promote their business. Additionally, content creators can lean into developing their own digital courses for sale, which can also come with low overhead costs.

Ecommerce

E-commerce stores are another great cash flow business idea for entrepreneurs that want to sell their own products online. It can be easy to get started in e-commerce because many online shopping platforms like Etsy, Shopify, and eBay offer help with store set-up, business planning, website design, and credit card processing.

Brick and mortar business ideas

Some businesses require a physical location, like a store or office, to be successful, while others can be a hybrid of brick and mortar businesses, like restaurants, and online businesses, like professional services. Some successful businesses are run strictly on a mobile basis, like a traveling notary or other mobile service provider. Of course, entrepreneurs must consider the physical location and vehicle requirements of the business plan when planning for startup costs.

Salons

Entrepreneurs that want to provide health and beauty and services to customers often grow profitable businesses quickly if they are able to develop a loyal customer base. These types of companies may be run out of a shop, like a barbershop, hair salon, or spa, or may offer mobile services, like an in-home massage therapist or mobile barber.

Laundromat

While there is a significant initial investment required because of equipment and real estate, once a laundromat is operating it can become a recurring revenue stream.

Car Wash

Much like a laundromat, owning your own car wash can provide a very lucrative income stream. The startup costs for a car wash include leasing or purchasing commercial real estate and a significant amount of machinery.

Landscaping services

Landscaping businesses are a solid cash flow business idea. Landscapers can operate as a sole proprietor or independent contractor to earn extra money by purchasing some basic equipment and taking on a few local clients. Landscapers can also build a multi-employee full-scale business where they provide a variety of services to a large list of clients.

Food and beverage

There are endless opportunities to build a successful business in the food and beverage industry. Restaurant entrepreneurship looks different for every business owner and may mean purchasing a franchised fast food restaurant, opening a local diner, purchasing one or several vending machines, or even running a food truck on the weekends for extra cash. Restaurant businesses require a varied amount of startup capital but can generate a profit quickly once they are attracting new customers.

Childcare

Providing childcare is another type of business with a very low overhead. Entrepreneurs can decide what type of childcare they want to provide which may be a physical location with certified teachers and a large customer base or a simple babysitting service in the owner’s residence.

Real Estate

There are several ways to make money in the real estate industry, including being a real estate agent, going into property management, owning rental properties, or work with a team of investors. Some businesses in the industry, like real estate investing or owning a rental business, require significant startup capital but can generate excellent cash flow in the first twelve months.

Another benefit of real estate is the ability to keep it as purely a side hustle or even grow it into a full time career.

Small business financing options for entrepreneurs

Once you’ve created a business plan and determined the amount of startup capital your new business will require, it’s time to consider the source of those funds. Entrepreneurs can use personal funds or borrow money from friends and family to get the capital they need or explore one of the following types of business financing.

SBA loans

SBA loans are a great, option for borrowers that are looking for low-interest rates, can meet the strict approval requirements, and have time to wait on the application process. The loans are partially guaranteed by the U.S. Small Business Administration (SBA) but are issued and funded by lenders.

Term loans

With business term loans, the borrower receives a lump sum of cash upfront and pays back the loan with set repayment terms. Small business loans are a great option for businesses looking for flexible financing for large purchases or to supplement cash flow. Borrowers with all types of credit history find term loans as a viable solution, although some require a down payment, collateral, or personal guarantee.

Business line of credit

 A business line of credit is a type of financing where the borrower is approved for a certain amount of credit for a predetermined time. Borrowers can take out the entire sum all at once or make a series of withdrawals up to the credit limit, like business credit cards. Interest is only paid on the amount of funds currently withdrawn. When the balance is paid down, the borrower is free to withdraw the funds again.

Merchant cash advance

A Merchant Cash Advance (MCA) provides small businesses with quick access to capital by advancing funds based on their future sales. MCAs don’t have fixed monthly payments or strict credit requirements. Instead, businesses repay the advance through a percentage of their daily credit card or debit card sales, making it a flexible financing solution. Small businesses can use MCAs to cover immediate needs like buying inventory or upgrading equipment.

Bottom Line

Starting your own business is an exciting venture. There are opportunities to build a successful, high cash flow business in several industries. However, quick cash flow business ideas can be short lived experiences. If you want to pursue a business, it’s best not look for a quick cash flow business idea, but rather one that can stand for a long period of time. Before creating a business plan and opening for operations, you must decide if you would prefer to start an online business or open a traditional brick and mortar business. Once a business plan is in place, you must also decide how much startup capital you will need and whether you will need to work with a lender for a small business financing option.

FAQs on Cash Flow Business Ideas

What are some cash flow management tips in a small business?

To manage cash flow in a small business, closely monitor income and expenses through budgeting and forecasting to anticipate shortages. Additionally, you may consider holding cash in a savings account in case things go awry in the short-term.

What is a high cash flow business?

A high cash flow business is one that brings in strong revenues with low expenses. There are plenty of high cash flow business opportunities in various industries.

What are some small business cash flow tips?

Business operators should regularly forecast cash flows to anticipate potential shortfalls. Additionally, reduce unnecessary expenses and maintain a line of credit or cash reserve for emergencies.

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