Addressing New Business Concerns with Success-Oriented Small Businesses

Understanding the legitimate concerns about high failure rates in new businesses, it’s vital to highlight the brighter side. Data from the US Bureau of Labor Statistics indicates that while there is a significant failure rate among new small businesses, certain types excelling in resilience stand out. This article aims to spotlight seven small business types with remarkably low failure rates, offering a more hopeful outlook for aspiring entrepreneurs.

If anyone wants to start a business and is worried about the high failure rate associated with new businesses then it is 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 after 10 years to a third of businesses have gone under. Those are sobering statistics. But the good news is that there are certain small businesses that enjoy remarkably high success rates. We are going to cover seven of the best. 

There is no small business that will never fail. Any Enterprise where individuals can make serious money is going to have some risk associated with it. In fact, there is a well-known principle called the “risk return trade off” that States that as the potential return Rises, so does the risk.

There is no small business that will never fail. Any Enterprise where individuals can make serious money is going to have some risk associated with it. In fact, there is a well-known principle called the “risk return trade off” that States that as 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 Anyone looks at really high-yielding assets, like businesses they can obtain generator Returns well above 30%. But all of that comes with some serious risk of failure. 

1. Laundromats: A Resilient, Low-Maintenance Business Model

Laundromats represent a nearly fail-safe business model, boasting a 95% success rate over five years, according to Laundry Lux. These businesses thrive due to their essential nature, even during economic downturns, and offer a mostly passive income source as machines handle the bulk of the work.

The great thing about the laundromat is that it can be run mostly passively. The Machines do all of the hard work of washing and drying the clothes, and the customers do the work of loading and unloading the clothes. Business owners will still need to take care of cleaning the laundromats, making repairs to the machine when needed and collecting the money from the Machines, but even for these activities business owners can hire people to do that for them. 

2. Rental Property Business: The Pathway to Millionaire Status

Rental property business is the single biggest contributor to any financial success. Andrew Carnegie is famously quoted as saying,” 90% of all millionaires become so through owning real estate.

Real estate remains a cornerstone of wealth accumulation, as echoed by Andrew Carnegie’s famous quote about the role of real estate in creating millionaires. With an 83.5% success rate (Advisor Smith), investing in rental properties stands as a solid business choice.

3. Self-Storage Facilities: A Hassle-Free Real Estate Investment

For those inclined towards real estate but averse to the challenges of being landlords, self-storage facilities offer a compelling option. Rhino Building notes their 92% success rate. Advances in technology facilitate unmanned operations, enhancing convenience and profitability.

If anyone likes the idea of real estate investing, but doesn’t want to deal with tenants, trash and toilets, self storage facilities may be a great option for them. According to Rhino building, a leading builder of self storage facilities, these resilient businesses enjoy A Remarkable 92% success rate. 

And if anyone wants to make their self storage business as passive as possible then they 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 storage units,  obtain the code, to unlock the unit and simply move their stuff in. no onsite manager is needed. 

4. Transportation Business: Capitalizing on E-Commerce and the Gig Economy

The booming e-commerce sector and the gig economy have made transportation businesses more lucrative than ever. Ranging from long-haul trucking to part-time Uber driving, these businesses enjoy a 76.4% success rate (Advisor Smith), making them a versatile and profitable choice.

 It can come in many forms, from 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 percent according to the same article by Advisor Smith. 

5. Vending Machine Routes: A Low Investment, High Return Venture

With a modest initial investment, vending machine routes offer a high success rate of 90% (Drops Vending). Their simple operation and scalability make them an attractive option for entrepreneurs seeking a passive income stream.

By a relatively modest investment, most probably 3 to 5 thousand dollars, anyone can buy a vending machine and just get started. Once they have their vending machine, all they need to do is find a well trafficked location that will generate sales for them. It is really as simple as that. Start with a single machine, figure out how the business works and then slowly expand. 

Before business owners know it they can have a vending machine Empire that can generate thousands of dollars a month in mostly passive income for them. The success rate for a vending machine business is a whopping 90% according to drops vending, a long-standing provider of nationwide vending services. If Anyone combined the low failure rate, affordable startup cost and simple operations of this business they can have a winning formula.

6. Agriculture Business: A Sector of Resilience and Stability

The agriculture sector, encompassing a variety of businesses including farms, boasts an 88% success rate (Advisor Smith). Its resilience and stability make it a reliable choice for entrepreneurs.

Agriculture businesses are highly Resilient and tend to have low failure rates. This can encompass many different types of businesses, including farms and host of related businesses. Agriculture businesses in joy and an awesome 88% success rate, according to advisor Smith. 

7. Dump Truck Businesses: Leveraging the Stability of the Mining Industry

Small Biz Trends highlights the mining industry’s high survival rate. A dump truck business, serving the needs of this industry, can be a profitable venture without the complexities and capital requirements of starting a mining operation.

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. 

Anyone can start a dump truck business, if they 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 best Thing is that people don’t have to spend millions of dollars to start a mining operation.

Understand This: Overcoming the Fear of Failure in Business Ventures

If anyone is afraid of starting a business just because they think the business might not succeed then these are the small business ideas with low failure rates. Now anyone can start their very own business easily without any fear of failure.