7 Best Businesses To Start With Low Failure Rates
If you're thinking about starting a business, it's probably smart to choose one that has a good chance of succeeding. Perhaps you have a brilliant business mind and can defy the odds.
But I always believe that having the odds in your favor is a good thing. Request funding here!
You've come to the right place if you're looking for rock solid businesses to start with a high success rate. Let me begin by stating that there's no such thing as a business that will never fail.
Any business that has the potential to produce a lot of money comes with some risk. In reality, the risk return trade-off is a well-known notion that implies that the potential return rises with a proportional increase in risk.
That's why equities have a significantly better long-term yield than your normal bank savings account. When it comes to high yielding assets like businesses, returns may typically exceed 30 percent.
However, all of this is fraught with risk. According to the bureau of labor statistics, around 20 percent of new business enterprises fail during the first two years.
45 percent fail within the first five years, and 65% fail within the first 10 years of operation. But this doesn't mean you should give up and not start a business.
You see, some businesses have a considerably greater success rate than others. And it's these kinds of businesses with low failure rates that I will be talking about.
I'll be taking you through seven different businesses with low failure rates. First of all, why should we even know of these failure rates?
Well, a majority of new business owners and entrepreneurs invest a significant amount of time, energy, and money in starting up their companies.
Vending Machine Business
So the first business on the list is vending machine business. A vending machine business is somewhat tied to success. The vending industry has a success rate of 90%.
Most businesses fail at an average rate of 85% of the time. Consider how a vending machine business differs from a typical small business. Many businesses fail because of overhead costs, not having enough money for advertising, rent, and other costs.
Finding and keeping good staff may often be a challenge too. On the other hand, your vending machines operate 24 hours a day, seven days a week.
A vending machine allows you to earn money even while you sleep and that's a fantastic method to make money. A lot has changed over the years and jobs are no longer guaranteed nor secure.
If you still read your local newspaper, you'll see that many people are being affected by corporate downsizing. Today, job security is non-existent especially when 90% of us work for others.
Owning your own business is the only method to achieve your financial goals. Unlike any other industry, the vending machine industry is unique. It enables a business owner to establish a vending machine biz with little or no expertise.
It also allows them to operate from home in an all-cash business. Vending machines operate entirely on cash. A vending machine business also has advantages that are uncommon in other sorts of enterprises.
Cash flow is immediate from the first day and you'll be making money. The business is conducted entirely in cash, no bad checks, credit risks, or accounts receivable.
It is a year-round business with no seasonal fluctuations of income, and has variable hours. With lots of time off, there are very little overheads, no rent, and utilities etc.
You get to work out of your own home instead of an expensive office. There are no employees to pay and you can start this business part-time, and still keep your day job paycheck and benefits.
Laundromats are another excellent business with a very low failure rate. A recent Gallup study indicated that 66% of potential entrepreneurs are held back by fear of business failure.
However, one research indicated that laundromats had a very high success rate with around 95 percent of laundromat succeeding after five years. Again, nothing in business is guaranteed but that appears to be enticingly close.
This is a fantastic recession-proof business that can generate money regardless of the state of the economy. After all, people's garments will constantly need to be cleaned and dried.
The beauty of a laundromat business is that it can be run almost completely passively. All of the heavy work of washing and drying clothing is done by the machines.
And your customers do the work of loading and unloading the clothes. Of course, you'll still have to clean the laundromat, make repairs to the machines as needed, and collect the money from the machines.
This is the fun part but you may employ others to do these things for you.
Real Estate Business
Andrew Carnegie is famously quoted as saying ninety percent of all millionaires become so through owning real estate. Did you know that more money has been made in real estate than in all industrial investments combined?
Therefore, it should come as no surprise that real estate investing has an enviable success rate of 85.3 percent. Why is real estate such a lucrative venture?
Well, you'll have monthly cash flow. Your renters will pay down your mortgage for you, and your properties will go up in value over time. You have a formidable wealth generator.
You can acquire rental homes with a loan and leverage your earnings. In addition, if you employ a property manager, your rental property business can be set up to create passive income.
But you don't need to hire a business to manage your properties. You still can handle all of your properties yourself, spending approximately five to ten hours each month on each one.
And as doctors and nurses were burdened with the pressure of attending to a large number of patients during this Covid 19 pandemic, people have resorted to get healthcare services from small-scale medical centers, or clinics.
They would do this rather than queue in general hospitals mostly for fears of being infected with the virus.
Healthcare business includes pharmacies, clinics, dentistry among other services. Healthcare is a fast-paced sector with several future prospects.
However, there is little concerns about cost, complexity, and uncertainty that may make this sector quite unsettling. But with the right approach, this is among the businesses that are least likely to fail.
Whether you're an investor, businessman, entrepreneur or inventor, you should try your luck. Healthcare prospects are set to rise enormously in the future.
According to statistics, in most wealthy nations health care consumes more than 10 percent of GDP. The same study said this percentage for the United States is getting close to 18 percent.
So you can only imagine how high it must be. Now this is unsurprising given that the healthcare industry is the largest employer in the United States.
In fact, the United States spends far more on healthcare than the rest of the globe. The global health industry was worth $8.45 trillion in 2018.
Global health care spending could reach over $10 trillion in 2022 as is evident from current data. Healthcare is one of the world's largest and fastest growing sectors.
If you start with a good business strategy, you may make a lot of money in the transportation industry. There are several prospects in this area but you must first analyze the existing demand depending on the geographical region.
Transportation business also includes vital features such as ambulances, medical emergency outstation, shifting and so on. Furthermore, traffic congestion in numerous major cities has paved way for public and private transportation to co-exist on the roadways.
As a result, a large number of individuals rely substantially on transportation. In light of the foregoing, the transportation industry has experienced a dramatic surge in demand.
The number of taxis, Ubers, and lifts on the roads are increasing. It has proven to be a lucrative business and many people consider it as a viable startup concept.
It is now simpler than ever to establish a transportation business thanks to the rise of e-commerce, the gig economy, and online platforms. So what exactly is a transportation business?
Well, basically a transportation business is one that transport things or people for a cost from one location to another. A transportation business may take numerous forms from a full-fledged long-haul trucking operation, to a simple weekend side hustle driving for Uber.
These sorts of business enterprises have a 76.4% success rate. Your outcomes may vary and specific transportation businesses may be more dangerous than others. But on average, you may expect a high success rate.
Agriculture businesses have a phenomenal success rate of 88%. If you have an interest in farming or other agriculture related industries, this may be the right opportunity for you.
The agriculture business is one of the most important contributors to the global economy since it feeds billions of people every day.
Agriculture contributed more than four percent of the global GDP in 2022 according to world bank figures. Although it may account for more than 25% of the GDP in some underdeveloped nations.
Agribusiness or agricultural business refers to the manufacture and sale of agricultural products such as farm equipment and supplies, machineries, and other farm-related services.
In addition to real farm activities, agriculture based businesses are known for their resiliency and low failure rates. These can include a wide range of businesses including farms and a variety of associated businesses.
Dump Truck Business
The mining business according to small biz trends has the highest survival rate of all industries with a 51.3% score. Starting a mining business is difficult and requires a large sum of money.
However, there is a brilliant little backdoor approach to profit on the mining industry's stability. Of course, if you live near a mine, there will always be a demand for dump trucks to transport coal or other commodities recovered from the mine.
The best part is that starting a mining business does not require millions of dollars. An old dump truck can be purchased for as low as fifteen thousand dollars.
The dump truck business is expanding rapidly which means there are more driving opportunities available. Indeed, the dump truck service industry in the United States is projected to reach $20.64 billion by 2025.
And that's just for large-scale mining and construction operations. There has never been a better moment to start a dump truck company than now.
It's a different story when it comes to running a dump truck business. Companies offering their own dump truck services or outsourcing fleet labor, creates a need that provides significant opportunities for individuals just entering into the space.
Whether it's corporate or private delivery, dump trucks are very adaptable allowing you to operate in a variety of industries other than mining.
Even if you don't live near a mine, construction firms, landscapers, real estate flippers, and even residential property owners who need to dispose of significant volumes of trash may want your services.
This is a business that solves problems and will rarely fail. If you're an entrepreneur or planning to start a business soon, look for a problem that others are having, and try to address it.
Make your company transparent, recruit the best people, and maintain a high level of work ethics. And if you do that, success is inevitable.