The vast majority of businesses in the world are small to medium-sized enterprises (SMEs) and the vast majority of them have constant cash flow problems. In fact, cash flow is one of their top five challenges. Learn about the best businesses for cash flow in 2024!

Lack of cash prevents SMEs from purchasing enough inventory or equipment, expanding operations, meeting current obligations, employing people and paying them well, and preparing contingency plans to deal with unexpected events.

Lack of cash flow is the cause of 60% of business failures, one of the contributing factors being late payments. Late payments are a universal problem for SMEs worldwide, playing havoc with their cash flow.

Cash flow is the money that moves into and out of a business, including salaries, rent, and stock purchases. The cash flow inflows include income from sales or services. Cash flow is a measure of a company’s financial health.

Positive cash flow means more money is going into the business than leaving it. That is what you want and here is a list of businesses that have been proven to provide a positive cash flow.

1. Franchises

Owning a franchise is a proven way to ensure that you have a business that generates cash. With a franchise, you buy into an existing business model that has already proven itself. You benefit from a training program, an existing supply chain, national marketing campaigns, and, most importantly, brand awareness. 

Some of the most popular franchises are hugely successful and have low failure rates. Statistics show that franchises have a better chance of success than independent businesses.

Best of all, you’re not alone in this endeavor. You have the benefit of ongoing assistance and training. Franchise owners are also provided with all the equipment and supplies they need for the business. 

Depending on the franchise you buy, you can benefit from immediate and ongoing cash flow because of brand-name recognition and customer loyalty.

Of course, there is the initial financial outlay, but depending on the franchise you choose, you can depend on future success.

2. Health care and social assistance

As the population ages and enter retirement, there is a growing need for senior care. Privately owned businesses that provide rehabilitation care, diabetic care, and home care services should have no cash flow problems as demand in these service areas is high while there is a lack of service providers. You can consider any of these businesses.  

Diabetic care center

Almost 10% of Americans either have diabetes or are prediabetic, according to official figures. This state of affairs provides people with the appropriate skills with the ideal opportunity to open a business that caters to people with diabetes.

Diabetes severely impacts a person’s quality of life as a result of kidney problems, circulatory problems, and damage to nerves, among others. A diabetic care center could provide dialysis, foot treatment, diabetic-friendly meals, information on healthy food and eating habits, and counseling, among other medical services. You can also provide preventive help such as teaching healthy eating habits or providing support groups for people with diabetes.

Home health care service

A home health care business provides professional support services that allow a person to live or recover safely in their home. A home care service business can help an older person to live independently, manage chronic health issues, or recover from a medical setback or operation.

The needs of an aging population are creating an ideal business opportunity for professional caregivers such as nurses, aides, and therapists.

Check out our article on What Is Net Rental Income Or Net Rent.

Medical foot care

Taking care of their feet is a real problem for seniors and diabetics who can reach their feet. The simple act of trimming toenails becomes impossible. 

Diabetes, particularly if it is poorly controlled, can lead to nerve damage and poor circulation. The devastating results include foot ulcers, blisters, pain, and foot infections. In severe cases, foot infections can spread to other organs. The worst cases lead to amputation. These patients need special care that can be provided in a special foot care clinic. Alternatively, you can provide the service at patients’ homes or via mobile foot care services in a specially equipped van.

3. Niche restaurants

Local independent restaurants, cafes and food trucks that focus on a niche benefit from the current trend to support local businesses. In recent years, there has been a push to support locally-owned restaurant businesses, with well-targeted businesses benefitting from consistent support from a loyal customer base.

The key to niche restaurant success is focusing on one thing and doing it well. The next winning strategy is to get involved in the local community and leave your customers feeling that your restaurant provides more than food; it provides a much-needed community service. If you can succeed with this message, the cash will keep rolling in.

4. Operate a food truck

Similar to a niche restaurant, a food truck provides specialized food and generates loyal customers. Loyal customers mean constant cash. The most successful food truck owners have honed their skills. They specialize in one particular dish. They make it very well. This draws the same hungry customers day after day.

The food truck model is ideal for today’s rushed lifestyle with everyone working all the time necessitating food on the go. The food truck industry faces a bright future. According to IBISWorld, the food truck industry grew 13.7% from 2017 to 2022 and increased growth is projected for the future. 

The food truck industry is changing and you can take advantage of this trend so you don’t have to spend your time making hotdogs. Food trucks have become hot food stops for all manner of exotic food. If you can learn to make a popular street food from a foreign destination really well, you’ll have a recipe for cash flow success.

A food truck is a high-profit food business, because of low investment and operational costs. You don’t even have to buy your own truck; you can rent one.

5. Real estate rental and leasing

For people who can afford to buy rental properties, real estate rental and leasing can provide positive monthly cash flow. Of course, this business involves an initial cash outlay, but once you’ve done that and own the property, you can lease it. Both private real estate rental and commercial leasing provide a stable cash flow. The cash flow will be positive if it is more than your mortgage repayment.

If you can afford to buy a place and let it at a reasonable rent amount, you’ll be in a winning situation due to the high demand for affordable housing.

6. Storage unit rental business

Renting out storage can be an extremely lucrative business. You need to spend money upfront to build the units, but once that is done, they require little or no maintenance. Every month, you’ll receive a check for every unit, which is the basis for positive cash flow. 

You’ll earn recurring revenue every month from your storage units and you don’t have to do any work to maintain them. Running storage units creates an indefinite passive income stream. With great profit margins, this business offers the potential to make a lot of money. 

7. Retainer-based professional businesses

A retainer model comprises an agreement between a service provider and a company for a specified time, during which the company pays the service provider a fixed amount every month to carry out a certain amount of work and to be available during that time to provide services.

This kind of business model is often followed by marketing and advertising agencies, law firms, and real estate agencies.

A retainer-based business model is a good option for professionals because it enables them to earn predictable, recurring income, which supports their cash flow. Since parties usually enter into retainer agreements for long-term projects, you will have work for the agreed-upon time. You don’t need to keep on pitching to different clients in the hope of getting work. 

Because of the monthly payment terms, you are assured of a consistent cash flow. And you are paid to be available, so if you are not needed, you still get paid. 

Many professional services can be delivered on a retainer basis. The film industry often makes use of this business model to ensure that they have stylists, photographers, makeup artists and other professionals at their disposal when needed.

8. Software as Service (SaaS) 

This is the business opportunity of our time. SaaS dominates the cloud computing market, and Gartner anticipates that the service-based cloud application industry will be worth $143.7 billion by 2022.

What is SaaS exactly? A SaaS company maintains a platform online and gives customers access to its functionality, enabling them to perform business tasks efficiently. The platform is accessed remotely by customers. 

These kinds of platforms are proliferating at an unbelievable speed. The SaaS business model allows users to pay a regular subscription to use a software solution without having to buy it. It is these kinds of solutions that enable online stores and customer service management (CRM), enterprise resource planning (ERP), human resource management (HRM), and many others. This market and its opportunities are only going to keep growing.

Because of the subscription model that requires monthly payments, there should be no cash flow problems with this kind of business. 

9. Child care service

Child care, also known as daycare, is normally a sustainable business because working parents are dependent on them – childcare services are like food; no matter how much it costs, you can’t do without it.

The need for childcare services is ever increasing as more and more mothers go out to work and grandparents are not around to take up the slack. Also, there are increasing numbers of single-parent families, which increases the need for childcare services.

It’s a business that can easily be operated from your home, which is convenient and saves you on overheads. This is also an ideal childcare solution for women who have their own children.

Since parents need to have their children in a safe place and taken care of while they work, childcare services are an expense they can’t avoid, which is an opportunity for childcare providers to have a cash flow-friendly operation. 

10. Event planner 

Running an event planning business is an option with great earning potential for outgoing people with good connections. The special events industry has grown enormously in the past decade, with spending for special events worldwide standing at $500 billion annually, according to research by events professional Dr. Joe Goldblatt. Profits in this lucrative market continue to rise, with profit margins ranging from 15 – 40%.

The industry is growing, in part, because while there are occasions that call for large events, the people who require them are not necessarily capable of organizing them. For instance, year-end and launch functions require specialized skills that are not necessarily available in-house.  

This leaves a gap in the market for creative Individuals with above-average organizational skills to plan themed events, exhibitions, weddings, gala fundraisers and similar events.

As an event planner, you can help organizations celebrate important milestones, gain public support and raise funds. If you are organized and well-connected, you can leverage the expertise of other professionals. This enables you to provide a unique service. You can scale this unique service over time.

The cash flow from an event planning business doesn’t depend on monthly subscriptions; it depends on your reputation for planning and hosting successful events. 

Check out our article on How To Come Up With A Business Idea.

Final thoughts

Maintaining a healthy cash flow is very important for small business owners. A solid cash flow will ensure that you have the funds to pay your suppliers, while poor cash flow can harm the business relationship you have with suppliers and damage your overall reputation.

Some businesses offer a better chance of cash earnings that avoid cash flow problems. In this regard, SaaS businesses with a subscription-based business model or retention-based professional services are very good options. Also, businesses that provide a service the people can’t do without, such as healthcare assistance for the elderly, will always generate a healthy income.