In this article we discuss the 5 most profitable cash-only businesses to avoid taxes. If you want to read our detailed analysis of these businesses, go directly to 10 Most Profitable Cash-Only Businesses To Avoid Taxes.
5. Food Trucks
Food Trucks are also a cash-rich business. As the cost of operating a restaurant climbs, food trucks offer small business owners the opportunity to serve customers at an affordable rate. In some urban landscapes, where population density is high, food trucks are now competing with traditional street vendors for lucrative business spots. An undated Mobile Cuisine poll indicates that more than 72% of these food trucks operate on a cash-only policy. Business News Daily also claims that most customers are used to paying food trucks with cash.
One of the most popular of these food truck franchises is Captain D’s Seafood. The brand operates more than 500 eateries in 21 states across America. In late 2017, a private equity firm acquired the franchise for an undisclosed amount. The equity firm has a track record of investing in growing middle-income businesses. Captain D’s has been ranked the top seafood restaurant chain in the QSR 50, an annual ranking of limited service restaurant companies based on their sales records in the United States. 4. Flea Markets
Flea markets can be a great source of income if executed in the right manner. The National Flea Market Association in the United States estimates that more than 1,100 flea markets in the country generate $30 billion in sales each year. More than 150 million customers visit these markets annually, where business is conducted mostly in cash-only. The association has said it stands against attempts to legislate the markets. The US government recognizes the impact of flea markets and their sales are included in the GDP calculated each year.
Usually, for the 2.25 million vendors who operate in flea markets, a booth fee is charged by the local authority in charge of the market. These fees depend on the size and location of the booth. Some markets provide staff for booths, so that the owners are not required to man the booth themselves. However, some markets do require the presence of the owner at the booth for a set period each year in order to maintain business integrity. 3. Transport Services
One of the reasons that the transport business in most countries is still cash-dominated is that local transport fares are usually very low. Since many people in urban centers use inter-city transport, these routes tend to be busy and cash-heavy, as people prefer to pay these small amounts in cash in order to avoid hidden fees or hassles with electronic devices. In developing countries, this is especially true, where the transport in some of the most populated cities in the world is dominated by a cash-only market where mass transit systems are missing.
Expeditors International for Washington (NASDAQ: EXPD) is a freight and logistics firm that is operating transportation services in the US. The stock of the company has seen a steady rise since the vaccine rollout at the beginning of the year. The company is valued at more than $18 billion and future growth forecast is also positive. Other big players in the industry include Matson (NASDAQ: MATX) and Echo Global Logistics (NASDAQ: ECHO). Both these companies are also upbeat about the future as the pandemic fears recede.
2. Home Care Services
Home care services are a multibillion dollar industry in the US. By the end of the decade, this number is expected to grow and hit $31 billion. Even as home grows smarter, there are some jobs that still require old-school approaches to business. For example, house painting. There is little investment required for house painting jobs. Apart from the cost of paints and labor, there is little else that house painters require, except maybe brushes and ladders. This is perhaps one reason why the home care services market, house painting in particular, is cash-heavy.
Other home care jobs like landscaping, interior design, plumbing and carpentry require skilled labor as well. These jobs are cash-dominated like house painting. Another reason this industry is growing is that the cost of home care products has been steadily rising. Nippon Paint Holdings (NASDAQ: NPCPF) is one such firm. However, it has seen its stock price fluctuate over the past few years, mostly due to the pandemic. In 2019, it acquired the Dulux Group for more than $300 billion. The firm is based in Tokyo and has thousands of employees. 1. Christmas Tree Lots
Christmas only comes around once a year. Just before the end of the year, Christmas tree lots spring up in several places all over the world. Most people want to celebrate the festival with their loved ones in the presence of an authentic Christmas tree and are willing to pay for it. The National Christmas Tree Association in the United States estimates that more than 20 million trees are sold during the holidays every year. These sales rake in more than $1 billion in revenue for the people selling the trees. This business is also cash-heavy.
The association also claims that there are more than 15,000 farms dedicated to producing these trees every year. More than 150,000 people are employed at these establishments and more than 350,000 acres are utilized for the purpose. The average growing time of this tree is at least seven years, making this a business that would only return investments over a long period of time. Since this is a once-in-a-year purchase, many tree lot owners operate on a cash-only basis, though this is changing as fewer people chose to carry cash around the holiday season for a variety of reasons.
You can also take a peek at George Soros’ Top 10 Stock Picks and 15 Most Valuable Cloud Computing Companies.
