Cash cow
Cash cow
A 'cash cow' refers to a venture, product, or business that consistently generates significant, steady income with minimal effort.
A 'cash cow' refers to a venture, product, or business that consistently generates significant, steady income with minimal effort.The term 'cash cow' is a metaphor used primarily in business and finance to describe a venture, product, business unit, or investment that consistently produces a significant amount of cash flow, often with little to no ongoing investment or effort. It implies that the entity in question is a reliable and dependable source of income, similar to how a dairy cow produces milk. These are usually established, market-leading products or services within their respective sectors that require little to no further development or marketing to maintain their profitability. The concept is crucial for companies as cash cows can be used to fund other areas of the business, including new product development or expansion efforts.
The term 'cash cow' is a metaphor used primarily in business and finance to describe a venture, product, business unit, or investment that consistently produces a significant amount of cash flow, often with little to no ongoing investment or effort. It implies that the entity in question is a reliable and dependable source of income, similar to how a dairy cow produces milk. These are usually established, market-leading products or services within their respective sectors that require little to no further development or marketing to maintain their profitability. The concept is crucial for companies as cash cows can be used to fund other areas of the business, including new product development or expansion efforts.
Use cases
Investing in rental properties in the city's downtown area has become a cash cow for the investor, as demand for housing in the area continues to rise.
The annual music festival, initially started by a group of friends, has grown into a cash cow, drawing thousands of attendees and generating significant profits.
The celebrity's line of beauty products was an instant cash cow, capitalizing on their fame and the high demand for quality cosmetics.
The first iPhone turned out to be a real cash cow for Apple, generating unprecedented profits and establishing the company as a leader in the smartphone market.
Despite the rise of digital media, traditional billboard advertising remains a cash cow for the company, consistently bringing in high revenue with minimal maintenance costs.
Their patented drug has been a cash cow for over a decade, funding much of their research and development in other areas.
The franchise's flagship store, situated in a prime location, has become the cash cow, supporting the expansion of more outlets in different locations.
Streaming services began as a risky venture but quickly turned into a cash cow for many entertainment companies, thanks to subscription models.
The software company's flagship product, which automates complex calculations for businesses, has been a cash cow, securing a steady stream of income through annual licensing fees.
Their coffee blend, praised for its unique taste, became a cash cow, outselling all other products and making the cafe a popular destination.
