Businesses that Never Fail 6 Businesses with Amazingly Low Failure Rates [Backed by Data]

Introduction

Most businesses inevitably face challenges, and the statistics are stark. According to the US Bureau of Labor Statistics, around 20% of small businesses fail within their first year, and this figure escalates to about 50% by the fifth year. By the ten-year mark, two-thirds have closed their doors. With such concerning odds, it's crucial to examine which business models offer the greatest likelihood of success. Here, we highlight six businesses with impressively low failure rates—data-backed insights to guide your entrepreneurial journey.

1. Laundromats

Laundromats boast an astonishing success rate of approximately 94.8% over five years, according to LaundryLux, a member of the laundromat community. A study by the Chamber of Commerce, in collaboration with Speed Queen, indicates a similarly high success rate of about 93%. Laundromats are straightforward operations, requiring minimal startup funds and maintenance. They continue to be essential during economic downturns, ensuring a level of downside protection. Further, laundromats can operate with minimal staff, allowing for passive management.

2. Rental Property Businesses

Real estate investment stands tall in its success, with an impressive 85.3% survival rate. This industry benefits from tangible, hard assets, making it more stable compared to other investments. Monthly cash flow from rental income is predictable, and the long-term appreciation of property values adds an additional layer of security. Furthermore, leveraging mortgages allows you to use other people's money for your investments, maximizing your financial efficiency.

3. Self-Storage Facilities

For those not keen on managing tenants directly, self-storage facilities offer a successful alternative. These businesses have a reported success rate of about 92%. With minimal management requirements and technological advancements facilitating remote operations (such as keyless entry and automated billing), self-storage is increasingly appealing.

4. Last Mile Delivery

The rise of e-commerce has made last mile delivery services essential, offering a success rate of 76.4%. This sector spans a wide range—from long-haul trucking to gig-based driving services. Despite some complexity, its inherent demand and relatively low operational costs contribute to its success. As delivery expectations evolve, so too do opportunities in this market.

5. Vending Machine Businesses

Entering the vending machine industry is relatively inexpensive, with startup costs ranging from $ 800 to $ 5,000. The success rate for these businesses is reported between 82% and 90%. They provide an excellent avenue for newcomers to grasp basic business concepts such as logistics and pricing. Healthy vending options are becoming popular, demonstrating that this sector still has room for innovation and growth.

6. Senior Care Centers

Surprisingly, senior care centers also exhibit a low failure rate. This success can be attributed to the increasing demand for elder care and government subsidies available to operators. While running a large senior care facility can be expensive, many successful operators start by renting or purchasing smaller homes, subsequently obtaining the necessary zoning and certifications. This model presents a viable opportunity as demographic shifts continue to provide upward trends in demand.

Keywords

laundromats, rental property, self-storage, last mile delivery, vending machines, senior care centers, business success rates, low failure rate businesses.

FAQ

What are the most successful businesses to start?
Businesses like laundromats, rental property ventures, and self-storage facilities have shown low failure rates and strong potential for success.

How can I ensure my business doesn't fail?
Choosing a business model backed by data, comprehending market demands, and managing finances proficiently are crucial steps to reduce the risk of failure.

What factors contribute to the low failure rate of laundromats?
Laundromats are essential services that maintain demand, even during economic downturns, and can be operated with minimal staffing.

Are vending machines a worthwhile investment?
Yes, with startup costs as low as $ 800 and a success rate between 82% and 90%, vending machines can be an excellent entry point for new entrepreneurs.

What is the importance of demographics in the success of senior care centers?
As populations age and the number of younger people decreases, the demand for senior care services is expected to rise, driving the success of care facilities.