Any enterprise where you can make serious money is going to have some risk associated with it. There is a well-known principle called the “risk-return tradeoff” that states that if the potential return rises, so does the risk. It's why stocks produce much higher yields over the long term than a typical bank savings account. Now 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, as we covered at the top of this article. 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 these enterprises. Now 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. Maybe you have an exceptional business mind and can buck the trend. ??? But, like Katniss Everdeen, I find that having the odds in your favor is always a good thing. On that note, let's get into it!
Number 1.
Laundromats enjoy an amazingly low failure rate. According to Laundrette, laundromats enjoy a 95% success rate over 5 years! Again, nothing is guaranteed in business, but that seems tantalizingly 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 of 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.
Number 2.
Rental Property Businesses. This one is near and dear to me. I am an avid believer in real estate investing and own nine rental properties. They have been the single biggest contributor to my financial success. But don't just take my word for it. Andrew Carnegie is famously quoted as saying: Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. So it should come as no surprise that real estate investing enjoys an enviable 85.3% success rate, according to Advisor Smith, a commercial insurance company that examined statistics from the US Bureau of Labor Statistics. Why is real estate such a great business? You can enjoy cash flow each month, your tenants pay down your mortgage for you, and your properties tend to appreciate over the long term. 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. I manage all 9 of my properties myself and only spend between 5 to 10 hours per month. That's pretty passive in my opinion.
Number 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, 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 onsite manager is needed.
Number 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 weekends, and everything in between. And these types of businesses enjoy a very good success rate of 76.4% according to that same article by Advisor Smith. 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.
Number 5.
Vending Machine Routes. One of my favorite businesses is a vending machine route. With a relatively modest investment, like 3 to 5 thousand dollars, you can buy a vending machine and just get started. Once you have your vending machine, all you need to do is find a well-trafficked location that will generate sales for you. It's as 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 in mostly passive income for you. So, what is the success rate for a vending machine business? A whopping 90% according to Drop’s Vending, a long-standing provider of nationwide vending services. When you combine the low failure rate, affordable startup costs, and simple operations of this business, I think you have a winning formula.
Number 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 Advisor Smith. So if you have a green thumb and an interest in farming or other agriculture-related businesses, this may be perfect for you.
Number 7.
Dump Truck Businesses. According to Small Biz Trends, 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 dump truck can be bought for as little as $15,000. Not only that, dump trucks are versatile. You are not limited to working with the mining industry. So 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. So there you have it – 7 great businesses that enjoy awesome success rates. If you enjoyed this article, please write down your thoughts below in the comment section. If you want to get more great content like this, please Bookmark my Blog. It helps a lot and I would appreciate it.
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