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Kyoto

Ideas For A 'passive Income'

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My dream has always been to make a passive income, (i.e. one that doesn't need my ongoing involvement). The dream is that without needing to go to work, I'd be free to travel, spend copious amounts of time playing PS3, and generally bum around.

I wouldn't need a lot of money. I'd be happy if I could consistently clear £1k a month income, as I'd happily spend 6 months a year in Asia.

The problem is that I don't have enough money to create this much income off the usual routes. I could maybe get £50k together, which would mean I'd need to make a safe and consistent return on that of 25% plus in order to live. Property, the stock market, or money in the bank wouldn't come close to freeing me based on this lump sum.

Over the years, I have looked at a number of schemes for creating passive income. I've stuck with what I know and played around in the online space - e.g. building websites, flipping websites, ebay trading, selling info products etc. Though I've been able to turn a profit on most of them, the work has been immense, the rewards just haven't been there, and they have proved anything but passive.

I'm now looking at real-world / offline ways of making passive income. One area of research for me is in setting up some form of rental business e.g. DJ equipment, gardening equipment, or catering equipment, investing my £50k and then accepting weekly rental income. I like the economics of this business, and the fact that it has low barriers to entry whilst being possible to run with minimal input.

I just wondered if I could get the advice of the HPC crowd, who are generally quite a creative bunch. Any feasible way for me to retire based on my current financial situation and relatively low cost of living? I am also willing to assume some level of risk, as I'm not yet 30 so will have a few more rolls of the dice if I make a bad choice, and have no dependents or financial commitments.

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My dream has always been to make a passive income, (i.e. one that doesn't need my ongoing involvement). The dream is that without needing to go to work, I'd be free to travel, spend copious amounts of time playing PS3, and generally bum around.

I wouldn't need a lot of money. I'd be happy if I could consistently clear £1k a month income, as I'd happily spend 6 months a year in Asia.

The problem is that I don't have enough money to create this much income off the usual routes. I could maybe get £50k together, which would mean I'd need to make a safe and consistent return on that of 25% plus in order to live. Property, the stock market, or money in the bank wouldn't come close to freeing me based on this lump sum.

Over the years, I have looked at a number of schemes for creating passive income. I've stuck with what I know and played around in the online space - e.g. building websites, flipping websites, ebay trading, selling info products etc. Though I've been able to turn a profit on most of them, the work has been immense, the rewards just haven't been there, and they have proved anything but passive.

I'm now looking at real-world / offline ways of making passive income. One area of research for me is in setting up some form of rental business e.g. DJ equipment, gardening equipment, or catering equipment, investing my £50k and then accepting weekly rental income. I like the economics of this business, and the fact that it has low barriers to entry whilst being possible to run with minimal input.

I just wondered if I could get the advice of the HPC crowd, who are generally quite a creative bunch. Any feasible way for me to retire based on my current financial situation and relatively low cost of living? I am also willing to assume some level of risk, as I'm not yet 30 so will have a few more rolls of the dice if I make a bad choice, and have no dependents or financial commitments.

Leasing can work well if its longer term leasing. With the short term type leases, eg one evening for DJ Kit will probably involve a lot more work than you think. Quite a lot of firms do buy back leasing, eg buy back a firms old IT kit and then have them pay you to lease it. This is basically a loan secured against IT systems, so not necessarily the most sound, but it is basically lending money.

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Leasing can work well if its longer term leasing. With the short term type leases, eg one evening for DJ Kit will probably involve a lot more work than you think. Quite a lot of firms do buy back leasing, eg buy back a firms old IT kit and then have them pay you to lease it. This is basically a loan secured against IT systems, so not necessarily the most sound, but it is basically lending money.

Thanks for that, that's a very interesting idea as IT is my business. I will investigate this one some more.

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Thanks for that, that's a very interesting idea as IT is my business. I will investigate this one some more.

what about opening a franchise for a bakery or something similar with steady income generation... all oyu would need to do is have an ERP system / POS /Accounting software setup and you can manage your company remotely most of the time... start off with one retail outlet and grow it slowly as your income increases.

there's a group pf hungarian bakeries that do amazing sweet and salty baked goods, all you would need to do is find a location that's not already saturated yet has good potential demand... and the franchise will setup everything for you.

it costs about $10,000 in franchise fees / guarantees, plus another $20k needed for OPEX. so well within your budget.

check out:

http://www.pek.hu/english/index.php

or

http://www.princesspek.hu/index.php

this is a cheaper franchise for smaller outlets... costs about $6000 per franchise.

http://www.pekaru.hu/index.php?oldal=oldal...any〈=en

these companies are expanding around the central european area, and they are pretty good (and price competitive).

once you setup a franchise operation, make sure you have a very good and trustworthy accountant, as well as a solid ERP system with all logs and data accessible by you whether on site or off site, and your investment should be pretty safe (certainly safer than in a bank! ).

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what about opening a franchise for a bakery or something similar with steady income generation... all oyu would need to do is have an ERP system / POS /Accounting software setup and you can manage your company remotely most of the time... start off with one retail outlet and grow it slowly as your income increases.

there's a group pf hungarian bakeries that do amazing sweet and salty baked goods, all you would need to do is find a location that's not already saturated yet has good potential demand... and the franchise will setup everything for you.

it costs about $10,000 in franchise fees / guarantees, plus another $20k needed for OPEX. so well within your budget.

check out:

http://www.pek.hu/english/index.php

or

http://www.princesspek.hu/index.php

this is a cheaper franchise for smaller outlets... costs about $6000 per franchise.

http://www.pekaru.hu/index.php?oldal=oldal...any〈=en

these companies are expanding around the central european area, and they are pretty good (and price competitive).

once you setup a franchise operation, make sure you have a very good and trustworthy accountant, as well as a solid ERP system with all logs and data accessible by you whether on site or off site, and your investment should be pretty safe (certainly safer than in a bank! ).

Very interesting and the start up cost is much cheaper than you imagine.

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My dream has always been to make a passive income,

I wouldn't need a lot of money. I'd be happy if I could consistently clear £1k a month income, as I'd happily spend 6 months a year in Asia.

I would have thought that your royalties from your time with the Glitter Band would've covered that.

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Make sure your software is intuitive enough to use so you dont get users phoning up asking how to do stuff as well. If you price it right your competitors cant compete I'm taking customers from SAP thats how good my stuff is for example as my overheads working from home are minimal.

If you need to employ programmers do it on contract and get their code uploaded everyday so you can monitor their progress even if they only wrote one line of code.

are you working with Adempiere/OpenBravo or Openerp?

selling low cost and simple ERP to SMEs (especially the ones who need some specialised MRP routing/costing engine) is a nice way to make an income. Although initial work has to be done on site... subsequently you get a nice revenue stream coming in and can be supported offsite in most instances.

You will find that companies who need more than one vertical solution from SAP, yet don't have the pocket for it, could be very good customers for an OPENERP implementation that's 100% open source:

-open source programming (scripting) engine (Python)

-Open source libraries used

-PostgreSQL database (the last truly open source one out there now...)

the killer feature is that apart from having £0 licencing/maintenance costs for the base software, OpenERP is quite possibly the easiest ERP to modify both the logic and user interface to customer's requirements... literally 20 lines of python code is enough for a new module...

invest a few weeks learning it, and you can be taking good consulting + support business on. If you need customer leads, simply pay to become an OPENERP partner network...

www.openerp.com

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Pimping. Had to be said.

Either that or a nice BTL portfolio.

pimping's very much a hands on job isn't it? :D

BTL is a good idea though... especially if you get your location/price right. with £50k, he's gonna have a hard time though... except perhaps becoming a slumlord in calcutta?

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Clarion www.softvelocity.com

clarion eh!

you're proper old school, but that's one of those niche RADs that's a magic for high speed deployments ;)

i still wonder how SAP became so big with their horrendous "systems". common sense, truly is not common.

another ap, not quite clarion quality, but useful nonetheless is alpha5 http://www.alphasoftware.com/ they've actually come a long way forward now and finally are not tied into their horrendous DB...

the above is very useful for domain experts to produce bespoke applications for customers, quickly and without fuss... the small code base also ensures relatively easy debugging and maintenance (caveat, without upgrading the 4GL runtime version!!).

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My dream has always been to make a passive income, (i.e. one that doesn't need my ongoing involvement). The dream is that without needing to go to work, I'd be free to travel, spend copious amounts of time playing PS3, and generally bum around.

I wouldn't need a lot of money. I'd be happy if I could consistently clear £1k a month income, as I'd happily spend 6 months a year in Asia.

If it was easy, everyone would be doing it. No?

Having said that, I'm about to start such a venture myself. Have been planning it for a couple of years and it will take at least 3 years hard graft though without pay before it gets to the "money for nothing" stage...so is a risk.

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Kyoto, you already know a fair bit about internet marketing, can you honestly say why it wasn't successful for you?

I took me a few years even to realise my mistakes but now I am earning full-time passive income myself, hence my recent move abroad.

I'm still Western Europe and earning less than when I worked but of course with total freedom. But I'd be a damn king if I was in Thailand.

I do mainly Clickbank stuff, around 75% of my income from being a vendor (great when affiliates do all the work for you) and 25% from my affiliate stuff. Now trying to diversify.

Why look to the "real world"? At least on the internet you have:

- zero to minimal startup costs

- zero to minimal running costs

- high commissions, both %age wise and also per sale

- zero to minimal effort required to maintain income

I don't mind helping others out either. But the amount of people who lack the belief that they can actually get out of the rat race never ceases to amaze me. Honestly, I'll give my personal time to anyone who wants to learn but very few can stop thinking like a sheeple to just ask and then actually try it out!

THEIR LOSS!

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I can't believe I'm saying this but, as a previous poster said, BTLing is the obvious way forward, just let the EA take the cut, and it's all done for you...

However with "only" (!) £50k, finding a house might be a prob, but you could always buy a boat on the Broads/Canal boat on the Trent/Avon which you can then rent out to the hoardes of staycationers through a company such as Hoseasons. Or buy a caravan on a caravan park - you use it when you like, and rent it out the rest of the time.

Several different income streams would be a good option. I too am surprised at the low start up costs of the franchises, but think there'd be more work involved than first glance...

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I am like Rolf, have been doing websites for four years, have lived all over the World and I have never been better off either!

Best advice is to check out www.webmasterworld.com and invest some time reading the site...thats how I started.

Being your own boss and working when you want and where you want is the ultimate freedom from a normal 9-5 existence.

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