Starting a business is an exciting venture, but it can also come with a lot of risks. The Bureau of Labor Statistics reports that around 20% of new businesses fail within the first two years, 45% within the first five years, and 65% within the first 10 years of operation.
However, there are certain business ideas that have a lower failure rate than others. In this article, we will explore seven business ideas that have proven to be successful and have a low failure rate.
1. Real Estate Business
Real estate investing has long been considered a lucrative venture, with a success rate of 85.3%. Owning rental properties provides a steady monthly cash flow, as tenants pay down your mortgage and the value of your properties appreciates over time.
Real estate investing also offers the opportunity to leverage your earnings by acquiring properties with a loan. Additionally, you can choose to hire a property manager to create passive income or manage the properties yourself. The real estate market has proven to be a wealth generator for many successful entrepreneurs.
2. Laundromats Business
Laundromats are another business idea with a very low failure rate. According to a Gallup study, around 95% of laundromats are successful after five years. This recession-proof business generates income regardless of the state of the economy, as people will always need to clean and dry their garments.
The beauty of a laundromat business is that it can be run almost completely passively. The machines do the heavy work of washing and drying, while customers load and unload their clothes. With proper maintenance and management, a laundromat business can be a profitable and stable venture.
3. Healthcare Business
The healthcare industry is a fast-paced sector with numerous future prospects. While it may seem complex and uncertain, it is actually one of the businesses that are least likely to fail.
Healthcare consumes a significant portion of GDP in most wealthy nations, and the industry is the largest employer worldwide.
With the rising demand for healthcare services, there are ample opportunities for investors, businessmen, entrepreneurs, and inventors. Whether it’s pharmacies, clinics, dentistry, or other healthcare services, this sector offers stability and potential for growth.
4. Transportation Business
The transportation industry is another business idea with a high success rate. As cities face increasing traffic congestion, the demand for transportation services has surged. From taxis and Ubers to specialized transportation services, there are numerous opportunities in this industry.
The rise of e-commerce, the gig economy, and online platforms has made it easier than ever to establish a transportation business. Whether you choose to operate a long-haul trucking operation or provide rideshare services, transportation businesses have a 76.4% success rate on average.
5. Agriculture Business
The agriculture business is not only essential for feeding billions of people worldwide but also offers a low failure rate. Agriculture contributes a significant portion of the global GDP and is known for its resiliency.
From farms to associated businesses such as farm equipment and supplies, there are various opportunities in the agriculture sector. With an 88% success rate, agriculture-based businesses can be a profitable venture for those interested in farming or other agriculture-related industries.
Starting a business is a risk, but choosing a business idea with a low failure rate can increase your chances of success. It’s important to conduct thorough research, develop a solid business plan, and stay dedicated to your chosen venture to maximize your chances of success.