Business ideas

FREE COPY OF THE INVESTMENT PROPERTY TOOLKIT TO EARLY RETIREMENT (YOUR EMAIL ADDRESS IS STRICTLY CONFIDENTIAL. I HATE ADS AS MUCH AS THE NEXT PERSON.)

KIDDIE RIDES

 

  • I purchased 3 second hand Kiddie Rides from an arcade store (actual pics above). The arcade store replaced these with newer model machines. The brand was Falgas, great quality. A brand new Horse Ride starts at R35 000. I had bought all 3 rides for R14 000. I found the ad on Gumtree.

  • The purchase price was R14 000 for all 3. I managed to get them at R12 000 by trading an MS66 R5 Mandela coin to the seller.

  • I negotiated a deal with the seller such that he sends his technician out to for repairs and maintenance for a call-out fee of R100 a month. 

  • Luckily, I had ample space in my house to temporarily store the games. Now, I just needed to build up some courage to approach store owners to take on the rides.

  • I spent the next day drafting a legal binding contract such that the store that hosts the rides will share in 35% of all profits.

  • I approached restaurants and kiddie stores and they dropped the terrible news that they, tenants in a mall (and all major malls), cannot take the rides. They cannot do any business other than what is stipulated in their lease agreement with the mall. This meant that the stores where prohibited from hosting a kiddie ride in or outside their stores.

  • Feeling very rejected, I approached the mall manager. She stated that the mall will affiliate with a long standing company only and that the rides need constant supervision given its nature (risk of liability in case of injury). Once again, my dream of earning a passive income was being shot down.

  • Sounded like a great business idea initially right! Now all of a sudden there was so much red tape!

  • It took me a week to build up the confidence again. I approached smaller shopping center shops (including hair salons, pie shops, baby stores and even SPAR). They all said it sounded like a great idea and that they will get back to me. No one got back to me.

  • I realised that with a small business venture like this I needed to scale down my strategy. I left the contract at home. I left my businessman persona at home. I approached a restaurant located within a popular nursery in Midrand. Thank God... the owner loved the idea.

  • On the first week we made R500 - just one week! 

  • The rides are now earning about R1200 a month, being my 50% share. With this yield I will see my capital returned within 10 months.

 

 

  • This is true passive income because all I do now is collect cash from the coin boxes on a weekly basis. 

  • My risk exposure is theft and damage. Totalling R12 000 (price I paid). I have a disclaimer sign for any injuries and damage during usage of the rides to mitigate any liability. OUTsurance liability cover also taken out.

  • Who knows, this could take off into something bigger over time...

 

INVESTMENT PROPERTY remains the most fail-safe method to earning a significant passive income and ensuring an early retirement!

 

 

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