Top 4 Businesses to Buy If You Have $100,000 in 2024

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Dear Wealth Builders,

As we head into 2024, many people are searching for ways to invest their capital and create sustainable income streams. If you have $100,000 and are considering buying a business, you are already in a position to diversify your wealth and create financial independence. But the question is, what are the best types of businesses to buy with that kind of capital?

In this post, we will explore four of the best types of businesses you can purchase for $100,000 or less in 2024. Each business type offers different levels of risk, effort, scalability, and profitability. We’ll cover what makes each option a good fit, how to find these businesses, the potential for returns, and tips to help you succeed in owning and operating them.

1. Cleaning Services Business

Why Buy a Cleaning Business?

One of the most attractive things about purchasing a cleaning business is its low overhead costs, simplicity of operations, and consistent demand. From residential cleaning services to commercial cleaning contracts, the cleaning industry is evergreen. Most people want to hire professionals to clean their homes or offices, and businesses need reliable cleaning services to maintain cleanliness and health standards. This makes it a reliable source of income with minimal ongoing capital requirements.

What $100,000 Can Get You:

With $100,000, you can buy an established cleaning business with a solid customer base, equipment, and experienced staff. You could also invest in marketing to expand the clientele or hire additional employees to increase the business’s capacity.

Return on Investment (ROI):

A well-established cleaning service can generate between $50,000 to $200,000 in annual revenue, depending on the number of clients, types of services, and geographical location. Cleaning businesses also have a low cost of goods sold (COGS), meaning a large percentage of revenue turns into profit.

Pro Tip:

If you're purchasing a cleaning service business, make sure you focus on recurring contracts with commercial businesses (offices, schools, retail stores) for more consistent cash flow. Residential cleaning contracts can be more variable but can be a great growth market.

Example Story:

Jessica, a young entrepreneur, bought a local cleaning business for $85,000 in 2023. It had an existing base of 25 clients and was generating $150,000 in revenue annually. By increasing her marketing spend and focusing on larger contracts with commercial businesses, she grew the business to $250,000 in revenue within a year.

2. Car Wash Business

Why Buy a Car Wash Business?

Car washes are another profitable, low-labor-intensive business. People are increasingly prioritizing convenience and are willing to pay for services that save them time—car washing is a perfect example of this. Whether it’s an automatic car wash or a full-service hand-washing setup, owning a car wash can generate significant passive income with minimal direct involvement from the owner.

What $100,000 Can Get You:

For $100,000, you may not be able to buy a large automated car wash, but you could purchase a smaller self-service or hand-wash business. Some automatic car washes may also be available at this price, particularly if they need some refurbishment or are in less competitive locations.

Return on Investment (ROI):

Depending on the location and the scale of operations, a self-service or hand-wash car wash can generate $50,000 to $250,000 in annual revenue. The initial startup costs (if you’re buying equipment) and ongoing maintenance for automatic equipment are important factors to consider, but the business typically requires few employees and low overhead.

Pro Tip:

Look for car wash businesses that are located near busy commercial areas or on main streets. These locations tend to get consistent foot traffic and repeat customers. Consider offering subscription-based services to lock in recurring monthly revenue.

Example Story:

Mark invested $95,000 in a small self-service car wash in a growing suburban neighborhood in 2021. He upgraded the facilities and introduced a subscription package for unlimited monthly washes. Within two years, his car wash generated $200,000 in annual revenue with minimal daily involvement, allowing him to expand to a second location.

3. Laundromat Business

Why Buy a Laundromat Business?

Laundromats are classic examples of businesses with predictable cash flow and strong resilience during economic downturns. No matter the economy, people will need clean clothes. The beauty of laundromats is that they require relatively little labor. Most operations can be managed with just a few attendants or even fully automated with coin-operated machines. Laundromats are also scalable, meaning you can easily expand by adding more machines or opening additional locations.

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What $100,000 Can Get You:

Depending on your location, $100,000 can buy you a small-to-mid-sized laundromat. You’ll also need to account for some operational capital to cover the cost of utilities and any necessary repairs or upgrades to the machines.

Return on Investment (ROI):

The average laundromat generates $15,000 to $300,000 annually, depending on its size, location, and number of machines. Profit margins tend to be high due to low labor costs and consistent customer demand.

Pro Tip:

Location is everything in the laundromat business. Look for areas with a high concentration of apartment buildings or low-income housing, as these areas are more likely to have residents who rely on laundromats.

Example Story:

Tina purchased a 10-machine laundromat for $85,000 in 2022. She modernized the machines to include credit card payments and added vending machines for detergent and snacks. Within a year, she increased revenue by 30% and is now planning to expand into a second location.

4. Franchise Business

Why Buy a Franchise?

Franchise businesses offer the benefit of starting a business with an established brand, proven systems, and operational support. With a $100,000 budget, you can purchase smaller franchises in sectors like fast food, home services, or fitness. A franchise allows you to minimize risk by using a well-known brand and established customer base.

What $100,000 Can Get You:

With $100,000, you can buy into smaller franchise brands, such as JAN-PRO (a commercial cleaning franchise), Taco John’s, or Anytime Fitness. Franchise fees vary widely, so you’ll need to find one that fits within your budget while allowing room for operational costs.

Return on Investment (ROI):

Franchise businesses can vary significantly in terms of revenue and profitability. On average, franchise owners can expect annual profits ranging from $30,000 to $150,000, depending on the industry, location, and brand.

Pro Tip:

Do thorough research on the franchise fees, royalties, and initial investment requirements. Some franchises may have low upfront fees but high ongoing royalty fees that can eat into profits. Make sure you choose a franchise that fits your financial goals and operational preferences.

Example Story:

Sarah used her $100,000 to purchase a JAN-PRO franchise in 2023. With a low initial investment and access to commercial cleaning contracts, she quickly built a client base and was generating $125,000 in revenue within her first year. The strong brand reputation helped her land contracts with larger corporations, allowing her to scale faster than she would have if she started her own cleaning business from scratch.

Key Considerations Before Purchasing a Business

1. Due Diligence

Before buying any business, it’s crucial to perform thorough due diligence. Review the company’s financial statements, tax returns, customer base, and supplier relationships. Consider hiring an accountant and legal expert to help you identify potential red flags, such as hidden liabilities or declining revenue.

2. Location

Location can make or break a business. When purchasing businesses like laundromats, car washes, or franchises, ensure the location is accessible and has a high customer demand. For franchises, some brands may even conduct market research to identify prime locations, helping you choose the best spot for growth.

3. Scalability

Look for businesses that have the potential for growth. Can you easily expand your services or locations as demand grows? Some businesses, like franchises and cleaning services, offer the opportunity to scale through additional locations, while others (like laundromats) can increase revenue by upgrading or adding more machines.

4. Exit Strategy

It’s essential to consider how easy it will be to sell or exit the business if needed. Some businesses are more attractive to buyers than others. For example, franchises often come with built-in buyers since other franchisees may be interested in purchasing existing locations. Similarly, profitable laundromats or car washes in prime locations are easy to sell when the time comes to exit the business.

Conclusion

If you have $100,000 to invest in 2024, there are plenty of opportunities to purchase established, profitable businesses. Whether it’s a cleaning service, car wash, laundromat, or franchise, each business model offers its own set of benefits, risks, and scalability options. The key is to perform thorough due diligence, choose a business with strong demand, and develop a clear plan for growth and profitability. With the right approach, your $100,000 investment could turn into a sustainable, long-term source of income and wealth creation.

What Business Are You Choosing?

Build Wealth Yourself Team

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