Small to mid-sized cash-flow-positive businesses—like laundromats, car washes, or landscaping services—offer stable, predictable returns, but investing in them is currently out of reach for most retail investors. Unlike publicly traded stocks or real estate investment trusts (REITs), buying into these "boring businesses" requires significant capital, operational know-how, and hands-on involvement. This leaves the market dominated by wealthy individuals and private equity firms, despite the potential for steady income streams. A fractional investment platform could democratize access, much like REITs did for real estate.
One way to address this gap could be through a publicly traded or private investment fund that acquires stakes in a diversified portfolio of cash-flowing small businesses. Here’s how it might function:
This approach could create value for multiple groups:
A phased rollout could help validate the concept:
This idea could bridge the gap between private equity and crowdfunding, unlocking investment opportunities in traditionally overlooked sectors. Success would depend on proving that small businesses can be standardized and scaled like real estate assets.
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