Many people want to start a business, but most are afraid to fail. And this is a very valid fear. According to the U.S. Bureau of Labor Statistics, more than 20% of new startups fail within the first year, 50% within five years, and 65% within ten years.
However, according to the same backed data, some specific businesses have a low failure rate that it is almost impossible to fail if you start one.
Most of them are because people need them to survive, others because they are so simple and practical that many customers just love them.
I had the pleasure to try a few of them, so for that reason, here are the five businesses with low failure rates that you can start even in a recession because they can almost guarantee you success.
1. Education sector
It doesn't matter in what season of the year we are; if there is a crisis or no money for many things, the teaching sector will always have an audience.
This is because people constantly need to learn, no matter what level of their career or life they are at. And it's a crucial part if you want to scale.
The global higher education market is valued at more than 80 billion, and it has a growth of 8% per year. In addition, it is still a sector with a lot of demand. According to the backed data, in 2021, 214 million kids worldwide were out of school due to the pandemic, and 126 million kids were affected by school closures after that.
On an experienced level, only 43% of the worldwide population is professional, so we have a target of more than 55% of the adult people in the world.
At a business level, with the knowledge that you already have, you can start creating online courses and books, which require 0 capital of initial investment and only from 20 hours to 60 hours of effort, depending on what you are building.
With those courses and e-books, people are making from 10 dollars to even 500,000 dollars with a single product annually. The success rate of any educational service is 91.3% when doing it correctly.
2. Any type of rental
Real estate, in general, is almost always a good business or investment option. The asset's value rises over time, and you can earn cash flow monthly.
Renting has a low rate of failure because the population needs a place to live or work, but only some have the money or the logistics to own one.
The large number of Airbnb's that exist worldwide has made long-term rentals also rise and become scarce in most central locations, so if you have a house, it is almost guaranteed to be rented.
According to several research, the success rate of real estate as a business is 85%. In the U.S. alone, 44 million housing units are rented, which means 34% of the total houses that exist there.
But having a house for the long term is one of many businesses you can do as a rental. Self-storage companies make billions of dollars annually renting a small space for individuals and companies. There are also car rentals, tech supplies, and studios for photographers and videographers.
3. Transportation area.
Last month I bought a new couch for my living room in one of the most popular stores in my city, the sofa I chose was big enough to carry by myself in my car, so I asked the girl at the cashier about the options I had for transportation.
Surprisingly, she said that the store did not include transportation (something I realized after I bought the article) and that I had to leave with my sofa today, or the store would charge me $10 for each day of storage.
Right next to the store, there was an "external" transport provider that offered transportation and assembly for a fee. It was practically the perfect business. Probably 80% of the people who buy there need one.
After doing some research, I found out that transportation, in general, is one of the safest businesses with a low failure rate.
Furniture transportation for individuals or e-commerce, people who need taxis, children who need to go to school every day, and even food for people who don't want to go out, the population always needs some kind of transportation at some point in their life.
Having a transportation business have a success rate of 80%. You can choose one of the many types of transportation (people, articles, or food), and you can start with just your car. If you have a contract with a business, you will have a passive income guarantee every month, but you can also manage it like a hobby with apps like Uber or Doordash.
4. A vending machine business.
A vending machine business was my first side hustler ever. Even without experience in the industry and all that it takes to run a company, I was able to make a three figures passive income with it in my first month.
Also, selling it when I decided not to have it anymore was pretty easy too. I made a deal with the mall owner where I put the machines because I was having estres in the pandemic, and I didn't want to take care of it anymore.
To start that type of business, you only need the space where you will put the machine, the cost of the machine (around $2000), and the first food you will put there. And the best thing is that it practically runs alone, so it is not something you have to spend eight hours working on it.
The success rate of a vending machine business is 90%. I recommend first searching for the place and making a deal with the owner before buying the asset, so you are completely sure you will run it before the investment.
It was a good experience because, above the money I was earning monthly, I learned a lot about finance, logistic, and product, which later helped me buy something bigger.
5. Health sector.
The healthcare business in the United States is one of the most lucrative companies that exists and is a big part of the economy. During the pandemic, the health area was one of the few sectors that remained stronger in the stock market and the one that moved millions even in a crisis.
Even if this sector has high demand, most hospitals and centers operate almost near their capacity.
You don't have to be a doctor to be part of this business. The ones that manage this sector are economists and managers, and the doctors are their employees.
Also, the health sector has many branches: medical supplies, medicine distribution, medical equipment supply and repair, and personal health care.
There are business opportunities for people who only require a technician (for example, pharmacies only require a license as a business owner, centers specialized in sonography and x-rays, vaccine centers, etc.).
The initial capital will depend on your focus, but you can start with a single medical equipment and grow.
For example, my uncle didn't have enough money to start an ultrasound center, so he bought a sonography machine and a truck and started an online business to go to people's houses to do the ultrasound session for families who wanted a private and more personal moment in their houses and later included gender reveal packages.
Another good business that started with low capital and no physical place was Takecareof. They are an online business that recommends and sends you a monthly package with the vitamins and proteins you need.
This is one of the most expensive businesses on this list, but the one that will almost guarantee you success if you position yourself in a good place. The success rate is 80%.
Final thoughts
Starting a business requires more than capital and a good idea; even with everything you need, there's no guarantee you'll succeed. However, there are some businesses with such a low failure rate that even without experience, you can start making money with it.
If you want to start a business but are afraid about whether it will succeed, you can analyze these five businesses that are easy to maintain and earn profit. Here they are summarized:
- Teaching sector. Online courses, e-Books, and seminars can make six figures annually and is a sector that constantly needs people with fresh content and information.
- Any type of rental. From houses, and office spaces to even self-storage containers, renting a space is a good business because most of the population needs a place to live and work. The success rate is from 83-92%.
- Transportation. People will always need transportation at some point in their life for food, furniture, or going to a place. If you manage to have a contract, you can start a lucrative business that can start with just your car. The success rate is 80%.
- A vending machine business. It doesn't require employees, and the capital for starting it is very low. You only need to search for the space and fill it with food. The success rate of this business is 90%.
- Health sector. It has a lot of branches to focus on and high demand for people to work on it. You don't need a professional degree, and you can start small and as a freelance and then grow.
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