HOW ATHLETES CAN BUILD WEALTH THROUGH PASSIVE BUSINESS OWNERSHIP

Hey Everyone,

Athletes have a unique challenge when it comes to wealth-building: plenty of capital but very little time. The key is to invest in businesses that generate consistent cash flow without requiring daily involvement.

The best way to do this? Buy or start businesses that are already profitable, structure them properly, and put the right operators in place. Here are some of the best business models for athletes looking to create passive income and long-term wealth.

1. Private Lending (Hard Money & Business Loans)

Private lending is a low-overhead, high-margin business where you can charge double-digit interest rates on real estate and business loans, generating recurring monthly cash flow from interest payments. To make this passive, you can hire a loan officer to underwrite deals, use loan servicing software to automate payments, and work with a bookkeeper to track cash flow. With the right systems in place, private lending can generate a 10-20% annualized return.

2. Home Services Businesses (HVAC, Pest Control, Plumbing, Pool Companies)

These businesses are recession-proof, in high demand, and offer strong recurring revenue through maintenance contracts. They also sell for high multiples when it’s time to exit. The best way to make this type of business passive is to partner with an operator who runs the day-to-day or hire a general manager and sales team while structuring the business around recurring service contracts. This model can generate 20-40% annualized returns.

3. Dental & Medical Practices (Partner with a Doctor)

Healthcare businesses have high profit margins, strong recurring revenue from insurance reimbursements, and are always in demand. By acquiring equity in an existing practice and keeping the doctor as a partner, you can own a profitable business without running operations yourself. Hiring a practice manager to oversee billing, staffing, and scheduling allows you to stay completely hands-off while earning 25-50% annualized returns.

4. Accounting & Bookkeeping Firms

Accounting firms are incredibly sticky businesses because every company needs financial management, and clients rarely leave. With subscription-based revenue from business clients, these firms generate consistent cash flow. The best way to make this passive is to acquire an established firm with recurring clients, keep the previous owner on for 2-3 years during the transition, and hire a lead CPA to manage operations. This strategy can yield 30-50% annualized returns.

5. Billboard & Outdoor Advertising (Own Digital & Static Billboards)

Owning billboards is a highly passive business with low labor costs and steady recurring revenue from advertising contracts, typically ranging from 6-12 months. Digital billboards allow multiple advertisers on one screen, increasing revenue potential. To make this passive, you can hire a leasing agent to fill ad slots, use digital billboards to maximize space, and automate payments with ad management software. This business typically generates 15-25% annualized returns.

How to Make Any Business Passive

The key to turning any business into a passive income stream is hiring a general manager or skilled operator, building systems and automation to remove yourself from daily operations, focusing on businesses with recurring revenue (subscriptions, contracts, memberships), and scaling in a way that doesn’t require your direct involvement.

Many athletes make the mistake of trying to start a business from scratch instead of buying an already-profitable business and structuring it correctly. If you buy right and set it up well, your business should grow and cash flow without you needing to be in the weeds every day.

Want to learn more about structuring passive business deals? Let’s connect and talk about how to acquire businesses, partner with operators, and generate real passive income.

To BUILDING wealth,

DK 💰