Discover 6 Businesses That Never Fail, even during a recession. Increase your success rate and make more money – start reading now!
Starting a business can be intimidating – especially when looking at the alarmingly high numbers of business failures. According to the US Bureau of Labor Statistics, 20% of small businesses in the United States fail within their first year and the odds only get worse with 50% of businesses becoming defunct after just 5 years.
Even after 10 years, two-thirds of all businesses have gone bankrupt. With such disheartening information, it is crucial to analyze data to identify which businesses have a higher likelihood of succeeding.
To help make this arduous but vital decision easier for entrepreneurs, we have done the research and looked at the numbers to bring you six businesses that have an incredibly low chance of bankruptcy. Backed by strong data, these businesses offer small wins, giving business owners a higher chance to continue taking risks and successful ventures.
Quick Comparison : Businesses That Never Fail
Here is a table that provide a quick comparison of the the businesses discussed in this blog post
| Types of Business | Pros | Cons |
|---|---|---|
| Healthcare | Remarkable growth in the industry Government subsidies available Changing demographics Potential for sustainable business |
Not completely immune to setbacks Requires significant investment |
| Laundromats | Incredibly high success rate Low-risk entry into business ownership Operational during recessions Passive income opportunity |
High initial investment required Maintenance and repair costs for equipment Competition and market saturation can be challenging |
| Self Storage | Impressive success rate Can be run remotely with technology advancements Potential for increasing returns with value-adds |
Success rate may decrease due to increased competition |
| Real Estate Business | Proven profitability and ability to produce millionaires Reliable monthly cash flows Tax benefits and leverage opportunities |
Market trends can impact prices Requires qualification for loans and mortgage coverage |
| Vending Machine Routes | Relatively low startup costs High success rates within the industry Opportunity to learn business operations with minimal risk |
May not be suitable for long-term, large-scale profitability and growth |
| Transportation Business | Rapid rise of e-commerce and gig economy contributing to success Low cost of inputs required Potential for accessing larger markets |
Investments with potential bankruptcy risks should be avoided |
6 Types of Businesses That Never Fail [Low Failure Rate]
Here are the 6 business ideas that don’t fail even in a recession time.
1. Healthcare
Senior care centers have long enjoyed a remarkably low rate of business failure due to a variety of factors. Many areas are able to provide substantial government subsidies, most notably from the state and local levels, that make it easier for aspiring entrepreneurs to take on senior care centers as business opportunities.
The global health market is showing remarkable growth, with the current value estimated to be USD 336 billion in 2021 according to Grand View Research. What’s more impressive is the prediction that the compound annual growth rate will reach 7.93% from 2022 to 2030. These figures demonstrate the potential of this expanding sector and its ability to contribute significantly to our economy.
Additionally, the changing demographics of the United States—with an ever-increasing number of elderly citizens—have further improved this business model’s sustainability.
These properties may often require a significant investment, yet an individual can enter into the industry without the immediately large amounts of capital needed by buying a house and obtaining proper certifications and zoning permits. Such scenarios come with their own respective regulations, protocols, and oversight mechanisms, yet such measures are not insurmountably prohibitive.
Finally, it is important to note that pharmaceutical businesses are never going to stop failing—every business is prone to certain setbacks—so senior care centers do not enjoy complete immunity in this regard. However, given the continued support from governmental entities and the underlying demand provided by the aging population, it appears highly unlikely that senior healthcare businesses will ever suffer major downturns or complete failure.
2. laundromats
Laundromats boast an incredibly high success rate with over 94.8% remaining open and operational for at least five years, based on research conducted by the laundromat community. The chamber of Commerce also collaborated with Speed Queen to ascertain that their success rate was 93%.
This low-risk entry into business ownership has many appealing qualities; it does not require millions of dollars to buy or start, people still need to wash their clothes even during recessions providing downside protection, and can be operated remotely making it a passive income opportunity. With proper planning and decisions, your business will never fail.
3. Self Storage
Self-storage as a business asset has been in demand since 2008 and recent studies, such as the one conducted by Rhino Building, have shown that it has an impressive success rate of around 92%. However, the proliferation of these businesses means that this success rate may not last. Nonetheless, despite its lack of hands-on labor, technology advancements make it possible to run unmanned self-storage businesses remotely.
With keyless entry systems, tracking devices, security measures, automated billing, and contactless contracts – all of which can be implemented with minimal effort – entrepreneurs can take advantage of this asset class without being on-site. Furthermore, investing in value-adds such as making the business more efficient or modernizing facilities can help to further increase returns. All of this makes self-storage a practical, lucrative option for those looking for real estate investments without the inconveniences of tenants and trash.
Self-storage businesses have a remarkably low failure rate, and the addition of seemingly minor details can have a significantly positive impact. Evidence has proven that the simple act of painting the facade of a self-storage unit can lead to an increase in property value, and technology advancements mean most self-storage facilities no longer need an on-site manager. These statistics demonstrate an undeniable propensity for success in the industry.
4. Real Estate Business
Real estate is a highly profitable investment, proven by its 85.3% success rate and its ability to produce millionaires – Andrew Carnegie famously noted that 90% of all millionaires get there through investing in real estate. Understanding why real estate businesses have low failure rates begins with appreciating the simple yet powerful rules that govern them. Hard assets such as houses are typically worth the market price, whilst providing reliable monthly cash flows from rental income.
The market for real estate is usually very efficient, preventing much room for variance or change. Leverage is a key component in real estate investment, where mortgages are used to purchase properties and resulting in tax benefits like 1030 one exchanges and capital gains deferral. Additionally, appreciation can amount to 4% on average each year, making real estate a resilient, sustainable business with many perks.
The real estate business is renowned for its low failure rates, and there are several reasons why. Tax benefits can be a great incentive to pursue the investment field, and passive income can be earned by having a property manager oversee operations. While some may believe there is ‘free money’ available without any work or effort, it is important to understand the current trends in the market. For example, California has seen real estate prices down by approximately 20-30%.
In order to have success with real estate investing, one must consider if they qualify for a loan and if they can cover the mortgage. Financially speaking, an average rental property may net about $462 monthly – not exactly a fortune but certain results can be achieved with dedication and hard work. By understanding the fundamentals of real estate investing and how strategies should be implemented, success can be acquired.
5. Vending Machine Routes
Vending businesses generally have lower failure rates than other startups, making them an attractive option for those looking to enter entrepreneurship. For example, it is possible to invest only between $3,000 and $5,000 in a vending machine and start your own business with minimal effort. Alternatively, savvy entrepreneurs could opt for a used vending machine and spend around $800. Candace Nelson famously created successful Sprinkles Cupcakes vending machines and was able to generate significant returns from that investment.
To succeed with a vending machine business, one needs to choose a high-traffic location and negotiate the placement of the machine either as a service or for a rental fee. After securing the location and the machine, one must keep it stocked with inventory in order to generate revenue. Although this type of venture may not be suitable for long-term, large-scale profitability, and growth, it can serve as an excellent starting point for aspiring entrepreneurs, providing a low-risk gateway into the business world.
Vending machines represent an excellent opportunity for entrepreneurs looking to start their own businesses. Not only are the initial startup costs relatively low, but data from Drop Vending and the US Bureau of Labor suggests that success rates within the vending machine industry range between 82-90%.
These high success numbers make it difficult to attain bankruptcy, allowing business owners to learn about aspects of the industry such as PNLs pricing margins, contractors, and logistics without major financial risk. This stripped-down version of business operations makes it easy to scale up – large industries with vending machines are currently valued at billions of dollars. As such, this low-failure rate venture provides a great option for those who are aiming to hustle and expand.
6. Transportation Business
The transportation and logistics industry has experienced an impressive 76.4% success rate, as reported by adviser Smith. This boom in success is primarily due to the rapid rise of e-commerce, the gig economy, and online platforming. These platforms have enabled companies to thrive with last-mile delivery services, a trend that has grown immensely in the last ten years. For example, one entrepreneur was able to turn his short-distance trucking company into a $2200/day business.
Even Uber’s food shipping service and weekend drivers are having great success stories — proving that even simple side hustles can achieve tremendous results. This high rate of success can be attributed to the low cost of inputs required for this type of business to remain profitable. Companies taking advantage of these lower costs and access to larger markets can continue to find success in the transportation and logistics industry.
Transportation businesses can offer entrepreneurs a relatively low-risk route to build their own business empires. Due to the minimal upfront expenses required, this sector has one of the lowest failure rates in the business world. Additionally, certain instances allow individuals to take advantage of investments with reduced risks, such as purchasing a truck that is likely to retain value over time.
Those seeking to establish an enterprise should also be mindful to not invest in deals that could potentially bankrupt them; even if just one deal goes awry, it could result in years’ worth of hard work and investments being lost.
Conclusion
Overall, no business is ever guaranteed to be successful and it’s important to remember that any business can fail if not managed effectively. However, the data has highlighted six types of businesses that are far more likely to be sustainable in their respective industries.
Whether you’re looking to invest or start up your own business, understanding the industry prospects is key to making your venture successful and achieving lasting success. I hope this blog 6 Businesses That Never Fail gave some insights to you. Thanks for reading.
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