Six passive income ideas for female founders with little or no startup funds
Founding a business is a leap of faith. It requires a lot of hard work, long hours, and an element of risk-taking (at least in the beginning).
However, for many female founders, it can take a lot of work to get your business off the ground. Not because of a lack of ideas but because you may not have the funds needed to set up your start-up for success.
According to The Harvard Business Review, “Most start-ups don’t succeed: More than two-thirds of them never deliver a positive return to investors […] True entrepreneurs dust themselves off and go back at it; they must be determined and resilient.”
If you are a female founder struggling with a lack of funds, you’re probably looking for how to start passive income streams that can help fund your business vision.
In this article, we will share the best passive income ideas for founders with little to no start-up funds. Our suggestions will help you increase your income so that you can get your business off the ground.
Let’s get started.
What is passive income?
Before we jump into the article, let’s take a quick look at passive income, what it is and what it means.
Passive income generates money without tying an individual down to a traditional salaried job. Individuals can earn passive income from many different sources. The two most popular ways of making passive income are through:
- Investments: such as rental properties, Airbnb’s, interest on savings, and leasing cars or equipment.
- Products: establish a passive income stream by selling products you have previously created (these could be physical products or digital such as online courses, marketing content, or digital prints).
Whichever passive income stream you choose, the idea is to make as much money as you can with as little effort as possible.
Having successful passive income streams allows you to have more financial freedom so that you can focus on other things and fund other interests – such as your business start-up.
Take a look at why investment education is crucial.
The benefits of passive income streams
Here are some of the benefits of passive income streams:
- Financial Freedom: passive income, when done right, can help you find financial freedom by freeing you from traditional working models and providing the funds you need to explore your interests.
- Time to Explore New Opportunities: with the time and financial freedoms passive income streams provide, you are more likely to explore new opportunities – such as starting your own business. Passive income opens a world of possibilities and allows you the chance to follow your dreams.
- Financial Stability: having multiple passive income streams is a great way to achieve financial stability sooner in life. With so many income streams, you avoid putting all your eggs in one basket. This can protect you against unforeseen circumstances such as redundancy, financial risks, and changes in the economy.
- Peace of Mind: one of the great things about passive income streams is the peace of mind they offer. When you have multiple passive income streams you can relax knowing that, even when you’re not actively working, you are making money.
Six passive income ideas
Now that you know a little more about passive income and its benefits, let’s explore the ways in which you can make a passive income and secure your financial future.
1) Launch a dropshipping shop
Dropshipping is an extremely popular passive income stream. It allows you to make passive income with no money when just starting out.
To start a dropshipping business, you must set up an online store where your customers can shop for products. When a customer makes a purchase, their order is automatically forwarded to your dropshipping supplier who wraps and ships the item. Once delivered, you receive the income.
This is a fantastic way to make more money and a convenient option if you don’t have the time to wrap and ship items yourself. Dropshipping is a low financial risk solution and allows you the opportunity to raise much needed funds for your start-up sooner.
2) Become a hosting reseller
Investing in reseller web hosting is an excellent passive income solution. It’s fast and easy and a great way to make more money for your start-up.
When you become a hosting reseller, you pay a monthly fee to access already established web servers which you can sell on to businesses and individuals at a profit.
You can create multiple hosting packages while reducing your direct involvement in server maintenance. Reseller hosting helps you manage multiple hosting accounts at one time, increasing your profit opportunities and furthering your start-up efforts.
Becoming a reseller is a great way to make more money. When you offer competitive prices and provide a high-quality hosting service, you will quickly attract a high number of customers. This in turn will help you generate a steady stream of revenue.
3) Sell your own digital products
With everyone online nowadays, it’s easier than ever to nurture multiple income streams. One popular option is to sell your own digital products. These could be anything from:
- Media such as videos, music or podcasts
- Downloadable files such as PDFs, ebooks, and templates
- Marketing materials
- Infographics
- Digital artwork prints
- Online courses
- Software
Selling digital products has a high profit margin. In other words, you can make more money faster. All you need to do is create the asset once and you can sell it as many times as you like via your online business. There’s no need to store the physical items or keep an inventory as everything is digital.
This is a fantastic passive income stream and could make a big difference to your start-up funds very quickly.
4) Sell handmade items
If you have the time and storage space, you may want to consider selling handmade items such as knits, jewelry, edible products, furniture, and so much more.
Websites such as Etsy and Facebook marketplace are both popular sites to sell handmade goods and make a profit.
There are many people who have built extremely successful businesses by selling handmade items online. However, it’s worth noting this can be more time-consuming than many people give it credit for.
5) Rent out a room in your house
Do you have a spare room? Perhaps you are lucky enough to have an annex or an office space in your garden?
Renting out your space room is a great way to establish a passive income stream. You can partner with companies like Airbnb to advertise your property/room and build up a reputation as a reliable host.
Renting a commercial space (even a small one like the office shed in your garden) is a great way to generate regular income. You may even consider transforming a room in your house into an office space that people can rent when they need a quiet space to work. This option provides many people with the working freedom they’re looking for while giving them another source of income.
6) Rent your car
If you don’t need your car every day of the week, renting it out to other drivers is an excellent passive income stream. You can make extra money without even leaving your home.
By partnering with companies such as Turo, you can connect with people who are looking for car rentals and ride-sharing opportunities (and are willing to pay for them).
This is a great opportunity to turn your car into another income stream rather than leaving it sitting in your driveway unused most days.
There are many passive income streams to choose from
As you can see, there are many passive income streams to choose from. And this article is just the beginning.
We hope the ideas we’ve listed have shown you how to start passive income with no money. And we hope you can find the right passive income stream for your needs.
Finding ways to make more money, especially when you are a female founder, can feel like a daunting task. But with passive income streams, you can invest in profitable ventures that make you money without adding to your already-busy schedule.
