You want to start a business but are worried about the high failure rates associated with new businesses.
It’s a valid concern, according to data from the US Bureau of Labor Statistics, about 20% of US small businesses fail within the first year.
That number jumps to around 50% by the end of the fifth year, and after 10 years, two-thirds of businesses have gone under.
Those are pretty depressing statistics, but the good news is that certain businesses enjoy remarkably high success rates.
I am going to cover 7 of the best ones right here, right now!
Let me start by saying that no business will never fail, any business where you can make serious money is going to have some risk associated with it.
If you look at really high-yielding assets like businesses, they can often generate returns well above 30%, but all of that comes with some serious risk of failure.
But don’t lose hope, as I mentioned earlier, we are going to cover 7 types of businesses with very low failure rates.
I will also include data showing these low failure rates and point you to some great resources to show you how you can get started in the easiest, quickest, and best industry of them all!
I want to emphasize how important it is to examine failure rates if you are thinking about starting up a business.
Most entrepreneurs devote a lot of time, energy, and money to launching their new company.
If you are thinking about starting a business, you must pick one that is likely to succeed.
You can get lucky in some industries but it’s best to have the odds in your favor, on that note, let’s get into it.
1. Laundromats.
Laundromats enjoy an amazingly low failure rate, according to Laundrylux: Commercial Laundry Systems | Electrolux…, laundromats enjoy a 95% success rate over five years, again, nothing is guaranteed in business, but that seems pretty close.
This is a great recession-proof business that can make you money no matter what else is happening in the economy.
After all, people will always need to get their clothes washed and dried, the great thing about a laundromat is that it can be run mostly passively.
The machines do all the hard work of washing and drying the clothes, and your customers do the work of loading and unloading the clothes.
You will still need to take care of cleaning the laundromat, making repairs to the machines when needed, and collecting the money from the machines, but even for these activities, you can hire people to do them for you.
By the way, if I could have your attention for just a moment, I wanted to show you something huge, Give Me 5 Minutes & I Will Show How You Can Generate Your First Paycheck Online! This is a serious recession-proof business backed by countless amounts of data.
2. Rental property businesses.
I am an avid believer in real estate investing, I also invest in REITs (Real Estate Investment Trusts)
Even Andrew Carnegie said…
“90% of all millionaires become so through owning real estate, more money has been made in real estate than in all industrial investments combined.”
It should come as no surprise that real estate investing enjoys a solid 85.3% success rate, according to AdvisorSmith: Your trusted small business resource.
Why is real estate such a great business?
- You can enjoy cash flow each month
- Your tenants pay down your mortgage for you
- Your properties tend to appreciate over the long term.
- You get tax breaks and deductions
- You can diversify your portfolio
- It can help against inflation
- You can do something called house hacking, where you rent a 4-bed house, live in 1, and rent the other 3, you basically have a free house that makes you money
If you combine these features with the fact that you can buy rental properties with a loan and use that leverage to increase your returns, even more, you have a powerful wealth generator.
Plus, your rental property business can be structured to generate passive income, all you need to do is hire a property manager, but you don’t need to, however, if your properties are in different places, you might not want to drive around all the time.
3. Self-storage facilities.
If you like the idea of real estate investing but don’t want to deal with tenants, trash, and toilets, self-storage facilities may be a great option for you.
According to Rhino Building & DIY Supplies LTD, a leading builder of self-storage facilities, these resilient businesses enjoy a remarkable 92% success rate, and if you want to make your self-storage business as passive as possible, you can start an unmanned self-storage business.
Advances in technology make this not only possible, but easy, people can now use their phones to book the storage unit, obtain the code to unlock the unit, and simply move their stuff in, no on-site manager is needed.
4. Transportation businesses.
With the emergence of e-commerce, the gig economy, and online platforms, it is more lucrative than ever to start a transportation business.
If you don’t know what it is, a transportation business is simply a business that delivers goods or people from one place to another for a fee.
It can come in many forms, from a full-fledged long-haul trucking business, to a simple little side hustle driving for Uber on the weekend and everything in between.
And these types of businesses enjoy a very good success rate of 76.4% according to AdvisorSmith: Your trusted small business resource.
Now, your results may vary, and certain transportation businesses are going to be riskier than others, but on average, you are looking at a really solid success rate.
5. Vending machine routes.
With a relatively modest investment according to Nerd Wallet, many vending machine operators recommend buying used or refurbished machines, which you can find for between $1,200 and $3,000, all you have to do is simply buy one and get started.
Once you have your vending machine, all you need to do is find a well, traffic location that will generate sales for you.
It’s simple as that, start with a single machine, figure out how the business works, and then slowly expand.
Before you know it, you can have a vending machine empire that can generate thousands of dollars a month of mostly passive income for you.
What is the success rate for a vending machine business? A whopping 90%, according to Drop’s Vending | Your Complete Vending Service Provider.
When you combine the low failure rate, affordable startup costs, and simple operations of this business, I think you have a winning formula.
6. Agriculture businesses.
Agriculture businesses are highly resilient and tend to have low failure rates, these can encompass many different types of businesses, including farms and a host of related businesses.
Agriculture businesses enjoy an awesome 88% success rate according to AdvisorSmith: Your trusted small business resource.
If you have a green thumb and an interest in farming or other agriculture-related businesses, this may be perfect for you.
7. Dump truck businesses.
According to Small Business Trends: Small Business News, Tips, and Advice, the mining industry has the greatest survival rate among all sectors.
Of course, starting a mining company is going to be complex and take a lot of capital, but there is a clever little back-door way to capitalize on the stability of companies in the mining industry.
You can start a dump truck business, if you live near mining operations, there will likely be demand for dump trucks that can haul away coal or other materials being extracted from the mine.
The great thing is that you don’t have to spend millions of dollars to start a mining operation.
A used Bell B40C 2001 dump truck can be bought on Autotrader for £36,500, not only that, but dump trucks are also versatile.
You are not limited to working with the mining industry, even if you don’t live near a mine, there can be plenty of demand for your services coming from construction companies, landscapers, real estate flippers, and even residential property owners who need to haul away large amounts of junk.
There you have it, 7 great businesses that enjoy awesome success rates, if you enjoyed this post please follow me, you would be helping us reach and support a lot more people, I wish you a happy day, and I will see you next time from Adventago. Bye Bye!
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