23 Business ideas that generate passive income. In this article, you will find some of the best passive income ideas investments that require minimal labor and makes a huge profit right from the first month. So step in and discover some of the best-automated business ideas that no one talks about. You will thank me later.

23 Business ideas that generate passive income

23 Business ideas that generate passive income

The moment you decide that you want financial freedom, your only way to reach that goal is to hustle until you create a business that runs automatically. To achieve such an ambitious goal, you need to be creative and come up the right business idea to become financially independent.

Automated wealth generation is a surefire way to increase your cash flow while reducing the amount of time you spend actually working.

In podcasts, bestsellers, and financial magazines, passive income is a very hot topic. I’m actually not surprised; Starting an automated business not only frees up your time to pursue the activities that make life worth living but also provides stability through a dependable and consistent revenue stream.

If you’re reading this post, I bet that you are interested in learning how to secure your piece of the “passive income pie” as well! Fortunately, the following post provides practical tips and ideas that will jump-start your journey!

During this article, I actually share my own knowledge and experience, along with deep research to help you start a business with a minimal upfront investment in both time and capital.

While you read, be sure to take notes on anything that catches your eye. Every profitable enterprise started as an idea, and I hope you will find the inspiration you need within the next few minutes of reading! Enjoy.

1.Rental Properties

Make passive income from rental properties. Real estate is one of the best automated business ideas that doesn't require any form of labour

This is my favorite form of automated business that makes up a large portion of my monthly income. It’s been a tough and long journey until I achieved this financial goal, but everything is paying off right now.

This is one tip from me because I’ve been through this: The sooner you start to invest in properties, the faster you will achieve financial freedom.

It will be hard, you will squeeze yourself, you will have sleepless nights, you won’t be traveling around the world, no luxury or designer items, but every income will be saved. Work save and don’t touch. Repeat the process until you save enough to buy cheap property, then move on to the next one.

The rent from the first property will automatically be a passive income, which will make the process of saving money faster. This strategy works every time if you budget correctly.

You can sacrifice a few years of your life by working and saving until you have a few properties in your portfolio, but never forget why you are doing what you are doing and stay focused.

Here’s an interesting fact: more millionaires have generated their wealth from rental properties than through any other avenue. When intelligent investors do their due diligence and secure a profitable stake in land, they can generate positive cash flow in rent every month.

Here’s what you might be wondering:

Does this mean I will need to fix clogged drains and toilets?

What if my tenant decides not to pay?

Won’t I need to stay in the immediate area where I buy the property?

If you’re doing the math, you’ll quickly realize that each of the above considerations requires a hefty allocation of time to fix. If you decided to handle each situation on your own, we actually wouldn’t consider your investment to be passive, much less automatic.

In order to truly automate your rental property investment, select a reputable property management company. Doing so alleviates countless hassles that can emerge from rental properties while saving you the most important asset of all: time.

As a matter of fact, property prices have only gone up since I know myself, and it will keep going that way since the population is growing at an exponential rate.

2.eBook Sales

Make money while you sleep by creating and selling eBooks

There is no coincidence that everyone wants to create an eBook or more and monetize their knowledge.

Whether through Amazon, a publishing house, or a self-publishing company, getting your best and brightest thoughts out to the world is now more streamlined than ever. Owning a popular eBook is not only a viable choice as a passive revenue stream, but can also lead to additional opportunities in the form of speaking events, signings, and guest posts.

Although writing and selling your eBook will require a substantial amount of time and marketing (in the form of word of mouth, social media ads, google ads, and collaboration with other authors) your efforts will be greatly rewarded.

I already started my own book a few months ago and I have to admit that writing is not a challenge itself, but time is the worst impediment. Some days I lack imagination, while other days I’m buzzing and the words are coming into my mind like water from an endless fountain.

23 Business ideas that generate passive income

As soon as you have your eBook ready, you can create a pre-order landing page and anticipate how many potential buyers you will have. Join entrepreneur Facebook groups and Twitter to connect with like-minded people and build connections.

3. Apple or Android App

Create a passive income business from an app

Have you ever thought there must be an app for thatonly to find that no such app exists? If so, you might be onto something!

Although you may lack the programming skills necessary to draft and design a cool app, developers are becoming more and more common, which means the price of services is on the decline. The residual income generated from this $60 billion dollar industry can put serious revenue flow into your account.

Depending on what niche is your app, you can make money in a few ways, either by displaying ads or a monthly subscription. Other apps are charging a separate fee for accessing a certain feature. Choose what works for you and how you want to be paid for your creativity.

To give you a cool tip: YouTube is a huge video-sharing platform that hasn’t got any serious competition. There are other video-sharing websites such as Dailymotion, Vimeo, Veoh, but nothing compares with YouTube.

In fact, I would love to see a video platform for content creators such as Netflix for example. I’m sure many people are willing to pay a monthly subscription to access quality content.

YouTube is filled with low-quality videos that rank higher than superior ones. I would love to see a video-sharing platform that rewards content creators for their work and approves only quality videos.

There is so much to say about this business idea, but I leave it to your imagination if you like to build a residual income from a video-sharing app.

4. Car wash

Setup an automated car wash and you will create the best passive income

Location, location, location. An automated car wash literally has the word automated in the title. With great location selection and quality construction, a car wash is a societal need that flows as much cash as it does water.

The only reservation is that car washes require a significant up-front capital investment. To secure funding, make a great business plan, find one or more investors, and have a burning desire to rid the world of streaks and smudges.

5. Online Courses

Create and sell online courses to generate automated income

Imagine filming an online course that generates new subscribers for years to come. Sound too good to be true? If it were, millions of teachers worldwide wouldn’t already be doing it! An online course is an excellent way to not only help the community but add monthly subscription checks to your wallet in the process.

Select a topic that you feel passionate about, providing practical and relevant advice, then list your course on Udemy, Teachable, your own website, social media, and LinkedIn groups. If done correctly, the end result could lead to an excellent stream of income for many years.

6. High Dividend Stocks

Make passive income from high dividend stock. Good cash flow business ideas

While you may not consider your investments to be a business idea, they are in fact one of the most effective ways to secure capital in the smallest amount of time possible.

Is best to select large, profitable companies that are well-established and provide high dividend yields. Next, ensure that your dividends are set to automatically reinvest in the market. Soon, you will have a revenue-generating machine that requires little to no effort.

Investing in high-dividend stock is pretty easy and you can start with as little as a few hundred dollars. In a few years’ time, that money can turn into thousands, if not hundreds of thousands.

7. Blog Revenue

A blog can be very rewarding and will generate automated income if done professionally
image source: canva

Here we are with this business idea that everyone is raving about. To be clear, blogging itself is not passive: you can generate revenue from displaying ads, sponsored posts, brand partnerships, affiliate marketing, and video marketing, and in the end, when you had enough, you can even sell your blog for a large sum.

Once you have solid and click-worthy content, you can generate passive income from advertisers who want their content in front of your readers.

Take for example missmv.com blog, you end up reading this article because you were looking for information and if you reach here, it means I’m doing a pretty good job to keep your attention for such a long time.

You see, this kind of content you need to create for your blog is something that people want to spend their time on and get value out of it.

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To become a well-known blogger, you have to innovate, invest time, and money, and collaborate. You can only have passive income from your blog when you generate at least 50000 visitors per month.

If you want to turn your blog into a passive income you have to publish multiple quality articles so people find your blog on search engines through various topics.

8. Car Rentals

Car rental is a very lucrative business that can generate automated revenue, no matter where you live or what car model you have

Perhaps your passive income endeavors have resulted in less frequent car use. You might now be in the perfect position to increase your automatic wealth generation even further.

With car rental services like Turo, you may even find yourself with a fleet of vehicles managed by the car equivalent of a property manager. A truly passive investor would hire an expert to manage their fleet, which is why I included car rentals on this list.

9. Photograph Licensing

Sell your stock images online and make money every single day

Have an eye for great photography? Better yet, do you have a large archive of existing photographs that businesses may be interested in purchasing for commercial use? If so, photo licensing may be the perfect source of automatic passive income ideas for students!

Pro tip: websites like Shutterstock pay their creators a royalty fee every time their photos are downloaded. That could mean major increases in your monthly cash flow if you have great pre-existing content.

There is always someone willing to pay for your photos if they are related to a unique niche. Even more, you can hire a photographer to shoot some images of yourself if you feel comfortable. There are plenty of websites to sell your images, either for a monthly subscription or per download.

The photography niche includes filters and presets ( a more popular way of making a passive income from photography skills). Presets are digital files that allow you to edit the photos with one click once installed in the free Lightroom app. If you like to see what presets files look like or to see what kind of presets I’m selling, check my new Etsy shop here.

10. YouTube

YouTube is probably the best passive income since you don’t need a large amount of money to buy the equipment, also, you don’t have to host your own videos, promote or collect payment.
image source: canva

You probably think that you need special talent or skills to start a YouTube business. In one way is true, but when you see a 15 years old kid that makes millions out of his/her YouTube channel, you should reconsider your option.

Just like any other business, a YouTube channel will be small, probably insignificant in the vast pool of videos. As your channel grows, you will become better at filming, coming up with video topics, and so on.

I had never considered YouTube a business until I had my channel monetized. Every single day and night, my videos generate a passive income for me, no matter what I’m doing ( you can check my YouTube channel here)

As a matter of fact, YouTube is probably the best passive income since you don’t need a large amount of money to buy the equipment. Also, you don’t have to host your own videos, promote or collect payment. This business is on autopilot, something that many people are striving to achieve, but they quit just before they reach the light in the tunnel.

How much money you will make with YouTube depends on the topic of each video, the audience country, and the duration of the videos. Instead of scrolling on social media, or watching TV for hours, why not use that precious time to do something creative that will pay off later on.

11. Mobile and static caravan renting

Mobile and static caravan renting which can turn into a serious passive income for lazy people

If you wanted to get into real estate and don’t have big capital, a mobile and static caravan is a simple, but, viable business to generate income without you getting involved in daily tasks.

In recent years, more people are choosing road trips worldwide, so they need a vehicle to hire. Here comes the opportunity for you to create a successful business by helping people to resolve a problem.

The way this automated business model works is quite interesting and I will explain why. Across the UK and USA mainly, caravan/lodge parks are very popular and in high demand. When you decide to buy a static caravan, you have the option to choose something really cheap for about $17000 or less in some areas.

Once you are the official owner of the static caravan/lodge, you can maintain and rent it by yourself or from an agency specialized in this business.

I suggest you should go with the agency if you really want to build totally Passive Income Streams for College Students. They will maintain, repair, clean, and rent your caravan each month, all you have to do is to collect the money and pay your taxes.

If the area is popular among tourists during the season you can make pretty good money.

You don’t have to look too much for people willing to rent your holiday lodge. To name a few, retired people, students on a budget, families, and groups of yogis are more than happy to book your static caravan for a week’s holiday.

Usually, caravan parks are situated in areas close to forests, near the sea, national parks, and lakes with stunning landscapes which give you the freedom to have a low-cost holiday anytime you want.

The same business model applies to mobile caravans, except that the initial investment is smaller than a static caravan. Find a good agency that will rent your mobile caravan and watch your bank account grow each month.

My next target is to get into this business also, as I would love the idea to generate passive income and take a holiday anytime I want, but not until the situation in the UK settles.

12. Marketing agency

The beauty of starting a marketing agency is that you don’t need too much investment, therefore the profit can be six figure in a few months time.

Marketing agency businesses are booming right now. The beauty of starting a marketing agency is that you don’t need too much investment. Once you set up a business website and a decent social media presence, you can hire remote workers to do the jobs for you.

A marketing agency is offering services such as:

  • video/audio ads
  • product placement
  • SEO
  • social media advertising
  • social media management
  • virtual assistant
  • search engine advertising
  • link building
  • brand building
  • influencer management

To get into this business, you need to know about each service you will offer in case you hire the wrong people to do the jobs for you. As your business is growing, you can hire a remote manager to take care of all the tasks while you network with people and find strategies to get new clients.

This business can quickly generate six figures if you decide to invest time and energy. Make sure to do whatever it takes to complete the jobs and build your reputation. Eventually, people will recommend you by word of mouth if they are satisfied with your services.

13. Recruiting agency

A recruiting agency business can be run both, online and physical. The business will run on autopilot once you have a few employees to do the job for you, while delegate a manager to run the busines

A recruiting agency business can be run both online and physically. If you want to be more credible and trusted, is better to have a physical office where you can meet face-to-face with people.

Basically, you can recruit people for all kinds of jobs, but I suggest starting with one niche in the beginning; for example, you want to recruit mobile beauty therapists. Therefore, once you establish the business to generate enough income, hire a manager to run the business for you.

Meanwhile, you can include other niches or start a new branch in a different city. Take a look at Urban Massage if you want some inspiration for a successful recruiting agency in beauty services.

This business is very lucrative since you don’t need to own a spa, a beauty salon or deal with employee taxes. In many cases, people who work for a recruiting agency are self-employed and need to pay their own taxes.

All you have to do is to hire an efficient manager to take the bookings and send the beauty therapists to do the job. If you think this business is ideal for you, it is better to discuss it with an accountant or a solicitor to understand precisely what it implies before you commit to investing your money.

14. Sweets vending machine

vending sweets machine is the best automated business that generate income while you sleep
image source: pixabay

This startup needs quite a small investment; with around $1200 – $4000, you can start a vending business in a matter of days. The key to success is a good location and the right product selection, a simple vending machine can bring almost $900 in revenue every month.

Even if you have a 50% profit from this revenue, it is pretty good for a passive income. The numbers can go even higher if you own 5 or 10 vending machines in this case, you can do the math and see what I’m talking about.

15. Fitness and boxing gym

You don’t even need a physical person to run a gym, with the right system it will be a business on autopilot.

This business is on my favorite list and I had it on my mind for a long time. If you take a look at a gym business model, you will quickly realize that is the best example of passive income. You don’t even need a physical person to run a gym, with the right system it will be a business on autopilot.

The cost to open a fitness and boxing gym can be higher compared with previous business ideas, but higher margins of profit.

Similar to vending machines, you need a good location but also a good marketing plan and lots of creativity to make it successful. You can get a lease for gym equipment or buy it with monthly installments to make the startup easier.

As the business is starting to kick off, you can add fitness, yoga, Pilates, and even meditation class. The start of a gym business can be challenging, but your work will indeed be paid off once you get plenty of monthly subscribers.

Once you start to make a profit, you can move to open another gym in a different location. This business model will work the same every time, and the process will be far easier because you have the know-how.

To make this business idea even sweeter, by calculating how many paying members you have, you can anticipate one month before your revenue.

16. Tools renting

Tools renting business is a good option if you have experience in construction or repairing stuff. Tools renting business can be also run with an automated system if you hire a knowledgeable manager

Tools renting business is a good option if you have experience in construction or repairing stuff. You cannot start this business if you don’t know the name of each tool or how does it look like.

Surely, you can hire someone to run the business for you, but still is important for you to know what you’ve got in the portfolio.

Tools renting businesses can be run online or in a physical shop. Do your research before you commit to investing your money, and make sure this business is right for you.

17. Pet hotel

The business model is as simple as a dog walking, expect the fact that you will host the pets overnight in your hotel and you are responsible for their well-being.

The Pet hotel business has increased tremendously in the last few years. Many holidaymakers have no option but to leave their pets with someone until they return home.

A pet hotel is the best option and gives you peace of mind knowing your pet will be safe when you’re away. Having said that, you need a hefty investment and planning permissions to operate such a business.

The business model is as simple as dog walking, except that you will host the pets overnight in your hotel, and you are responsible for their well-being. Take a look at government grants for start-ups and even find some investors that want to partner with you in this business.

18. Software and AI machines

Most teach billionaires have created software that we use on a daily basis. and now they live out of an automated income.

There is no question that software and AI machines are the future of business. Most teach billionaires have created software that we use on a daily basis. Some examples of software that we use every day are:

  • your computer software (windows, mac)
  • Norton antivirus
  • Adobe PDF
  • Microsoft Office
  • Social media apps

The software to create and run a blog:

  • WordPress
  • Website hostings, such as WordPress hosting, GoDaddy, and others
  • Website theme that can be used over and over again, which generates passive income without doing almost nothing
  • Moz and Semrush SEO analyzing software
  • Tailwind for Instagram and Pinterest scheduling and many others
  • Canva is another platform for creating graphic designs for almost anything.

To develop a good software idea, you have to solve a problem that people need so badly. Find a tech team to bring your idea alive, then prepare to invest in advertising so people acknowledge your product.

If your software is excellent, many investors will probably approach you with offers, either to buy it or to partners.

19. Motocross track

Starting a motocross track is a totally automated business that require a medium investment

If you have no clue about motocross tracks is fine, because not many people are passionate about motorbikes.

Starting a motocross track is a totally automated business. All you have to do is to find the right land (somewhere far from residential areas, where noise won’t be a problem). The bigger the land, the better.

Get planning permissions from the council, insurance, and even help if necessary.

Running a motocross track business is very profitable, just like the gym business, you only need to install everything properly and have someone who collects the payment at the entrance of the track.

How much money you will make depends on the weather, since it is very important for racers to have optimal conditions to ride their bikes.

20. Automated baseball batting cages

Automated baseball batting cages business for passive income
image source: canva

Consider your local batting cage. How often do you see staff members walking around? The cages are usually card-activated with a reloading kiosk nearby, the balls are automatically funneled back into the machines using gravity, and you can advertise on your website that the system is on a BYOG (bring your own gear) basis.

Although you may not be in love with America’s national pastime, you will love the deeper pockets you’ll need after investing in it.

21. Digital downloads

If you want to build a 100% automated business that will generate revenue while you sleep, digital downloads is definitely a profitable startup.

Digital downloads are goods that can be downloaded, edited, and printed per every individual’s need. If you want to build a 100% automated business that will generate revenue while you sleep, this is a profitable startup.

You need a little talent for graphic design, computer, internet connection, and designing software Canva, Microsoft Word, PowerPoint, and Adobe Photoshop to create digital downloads.

When I mention digital downloads, this includes business cards, posters, eBooks, photo stock, songs, videos, posters, cards, sketches, media kit presentations, product labels, calendars, and social media templates.

As you can see, many options exist to expand and monetize your creativity. The beauty of this business is that you can sell the same product repeatedly for many years without restocking it.

You can sell digital downloads via Etsy, eBay, Creative Market, social media, Shopify, and even your own website by implementing Send Owl software.

From my experience, social media templates are extremely popular among influencers and bloggers who need to create attractive content for their followers constantly.

Pinterest templates and stock images are the number one digital product that bloggers are willing to pay for either a monthly membership or a one-time payment. It’s up to you to create stunning designs that people want to buy. To make your business successful from the beginning, consider influencers your main advertising tool, along with social media ads.

Investment is relatively small for a digital downloads business, how much money you will make is based on your advertising budget and how good you are to build connections with others.

22. Tanning salon is one of the best passive income ideas

A tanning salon is a real example of passive income, which can generate profit every single day.

The most glamorous business idea for anyone willing to make passive income. Opening a tanning salon requires a five-figure investment, money that can be your own, or applying for a government grant.

A tanning salon business is a one-time setup that requires maintenance and engineer service at certain periods, proper insurance, and a staff member. Just like the rest of the businesses on this list, you don’t need to deal with stock inventory or chase trends.

A tanning salon is a real example of passive income, which can generate profit daily. Find some clever marketing tactics to build your name. To make your tanning parlor more client-friendly and help spread the word quicker, organize a monthly party and invite some of your clients to participate, along with local bloggers and influencers.

23. Bowling

You can make money with different methods alongside bowling. A sandwich bar and snacks, game machines, private parties, conferences, you name it. A bowling business can surely build residual income without moving a finger.

I’ve been thinking about this business idea very seriously lately, and I wanted to open such a business somewhere in a village where elderly people need some entertainment and have a place where they can socialize.

Starting a bowling business can be run on autopilot, too. With the right system implemented, you’re good to cash in.

You can make money with different methods alongside bowling. A sandwich bar and snacks, game machines, private parties, conferences, you name it. Expand your horizons and embrace these business ideas before they become a trend and won’t be any more profitable.

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Closing Thoughts

I hope your creative ideas are flowing after reading this list of passive income businesses. Next, you need to take action. Write down what you will do today, tomorrow, and the next day to turn your idea into a reality.

Pick one or more ideas from this article and get your business rolling before is too late. Don’t let your money sit in the bank without generating any income. Choose wisely and calculate the long term.

A quick resume of 23 Business ideas that generate passive income:

1. Rental Properties

2.eBook Sales

3. Apple or Android App

4. Car Wash

5. Online Courses

6. High Dividend Stocks

7. Blog Revenue

8. Car Rentals

9. Photograph Licensing

10. YouTube

11. Mobile and static caravan renting

12. Marketing agency

13. Recruiting agency

14. Sweets vending machine

15. Fitness and boxing gym

16. Tools renting

17. Pet hotel

18. Software and AI machines

19. Motocross track

20. Automated baseball batting cages

21. Digital downloads

22. Tanning salon

23. Bowling

If you enjoy reading 23 Business ideas that generate passive income, please share it on social media and pin it, it will help me massively. Many thanks, Maria

Business ideas that generate passive income without any investment. Smart business ideas that generate passive income


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