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Six Businesses That Are Unlikely to Fail

Justice is a business owner. He has been running multiple online businesses for the past five years.

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There is no such thing as a business that will never fail. Any business that has the potential to produce a lot of money comes with some risk. In reality the risk return trade-off is a well-known notion that implies that the potential return rises with a proportional increase in risk. That’s why equities have a significantly better long-term yield than your normal bank savings account.

When it comes to high yielding assets like businesses, returns may typically exceed 30 percent. However all of this is fraught with risk. According to the bureau of labor statistics around 20 percent of new enterprises fail during the first two years, 45 within the first five years and 65 within the first 10 years of operation. This doesn’t mean you should give up and not start a business. Some businesses have a considerably greater success rate than others and it’s these kinds of businesses with low failure rates that I will be exploring in this article.

I’ll be taking you through six different sorts of businesses with low failure rates and I’ll also share statistics demonstrating these low failure rates as well as some helpful tools for getting started with these enterprises.

First of all it is important to know of these failure rates because the majority of new business owners and entrepreneurs invest a significant amount of time, energy and money in starting up their companies. If you’re thinking about starting a business it’s probably smart to choose one that has a good chance of succeeding. Perhaps you have a brilliant business mind and can defy the odds but i always believe that having the odds in your favor is a good thing.

1. Vending Machines

A vending machine business is somewhat tied to success. The vending industry has a success rate of 90% while most businesses fail at an average of 85% of the time. Consider how a vending machine firm differs from a typical small business. Many businesses fail because of overhead, not having enough money for advertising, rent and other charges plus finding and keeping good staff may often be a challenge.On the other hand your vending machines operate for you 24 hours a day seven days a week. A vending machine allows you to earn money even while you sleep and that’s a fantastic method to make money.

A lot has changed over the years, jobs are no longer guaranteed nor secure. If you take a look at your local newspaper you’ll see that a lot of people are being affected by corporate downsizing. Today job security is non-existent especially when 90% of us work for others.

Owning your own business is the only method to achieve your goals. Unlike any other industry, the vending machine industry is unique as it enables the company owner to establish a vending machine route with little or no expertise while also allowing them to operate from home in an all-cash business.

A vending machine business also has advantages that are uncommon in other sorts of enterprises such as immediate cash flow. From the first day on you’ll be making money. Business is conducted entirely in cash so no bad checks, credit risks or accounts receivable. A year-round business with no seasonal fluctuations of income, variable hours with lots of time off, very little overhead, no rent, utilities etc. work out of your own home instead of an expensive office and no employees to pay. You can start this business part-time and still keep your regular job paycheck and benefits.

2. Real Estate

Andrew Carnegie is famously quoted as saying “Ninety percent of all millionaires become so, through owning real estate”. Did you know that more money has been made in real estate than in all industrial investments combined? Therefore it should come as no surprise that real estate investing has an enviable success record of 85.3%.

Why is real estate such a lucrative venture? Well you’ll have monthly cash flow, your renters will pay down your mortgage for you and your properties will go up in value over time. You have a formidable wealth generator when you combine these advantages with the fact that you can acquire rental homes with a loan and leverage your earnings even more. In addition if you employ a property manager, your rental property business can be set up to create passive income. You don’t need to hire a business to manage your properties, you still can handle all of your properties yourself spending approximately five to ten hours each month on each one. In my perspective that’s really passive.

3. Healthcare Business

From pharmacies, clinics, dentistry and among other services healthcare is a fast-paced sector with several future prospects. There are a few concerns about cost, complexity and uncertainty that may make this sector unsettling but with the right approach this is among the businesses that will never fail.

Whether you’re an investor, businessman, entrepreneur or inventor you should try your luck since healthcare prospects are set to rise enormously in the future. According to statistics gathered by policy advice, studies show that in most wealthy nations healthcare consumes more than 10% of GDP. The same study said by the end of 2019 this percentage for the United States will be close to 18%. So you can only imagine how high it must be now. This is unsurprising given that the healthcare industry is the largest employer in the United States.

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The United States spends far more on healthcare than the rest of the world. The global health industry was worth 8.45 trillion dollars in 2018. Global health care spending could reach over 10 trillion dollars in 2022. As we can see from current data healthcare is one of the world’s largest and fastest growing sectors. As doctors and nurses are burdened with the pressure of attending to a large number of patients, people have resorted for services from small-scale medical centers or clinics rather than queuing in general hospitals.

4. Transportation Business

If you start with a good business strategy you may make a lot of money in the transportation industry. There are several prospects in this area but you must first analyze the existing demand depending on their geographical region.

Transportation also includes vital features such as ambulances, medical emergency, outstation, shifting and so on.Furthermore traffic congestion in numerous major cities has paved the way for public and private transportation to co-exist on the roadways. As a result a large number of individuals rely substantially on transportation. In light of the foregoing, the transportation industry has experienced a dramatic surge in demand. The number of taxis, ubers and lifts on the road is increasing. It has proven to be a lucrative business and many people consider it as a viable startup concept.

It is now simpler than ever to establish a transportation business. Thanks to the rise of e-commerce, the gig economy, and online platforms.

So what exactly is a transportation business? A transportation business is one that transports things or people for a charge, from one location to another. A transportation business may take numerous forms from a full-fledged long-haul trucking operation to a simple weekend side hustle driving for Uber and everything in between and these sorts of enterprises have a 76.4% success rate. Your outcomes may vary and specific transportation businesses may be more dangerous than others but on average you may expect a high success rate.

5. Agriculture Business

Agriculture is one of the most important contributions to the global economy since it feeds billions of people every day. Agriculture contributed 4% of global GDP in 2018. According to world bank figures, although it may account for more than 25% of GDP in some underdeveloped nations.

Agricultural business refers to the manufacture and sale of agricultural products such as farm equipment and supplies, machinery and other farm-related services in addition to real farm activities.

Agriculture businesses are known for their resiliency and low failure rates, these can include a wide range of businesses including farms and a variety of associated businesses. Agriculture firms have a phenomenal success rate of 88%. If you have a green thumb and an interest in farming or other agriculture related industries, this might be the right opportunity for you.

6. Dump Truck Business

I bet you weren’t expecting this but a mining business, according to small biz trends, has the highest survival rate of all industries with a 51.3% score. Starting a mining business is difficult and requires a large sum of money. However there is a brilliant little backdoor approach to profit on the mining industry’s stability. Of course if you live near a mine there will always be a demand for dump trucks to transport coal or other commodities recovered from the mine.

The best part is that starting a mining business does not require millions of dollars.An old dump truck can be purchased for as low as fifteen thousand dollars. The dump truck business is expanding rapidly which means there are more driving opportunities available. The dump truck service industry in the United States is projected to reach 20.64 billion dollars by 2025 and that’s just for large-scale mining and construction operations.

There has never been a better moment to start a dump truck company than now. It’s a different story when it comes to running a dump truck business. Companies offering their own dump truck services or outsourcing fleet labor creates a need that provides significant opportunities for individuals just entering into the space. Whether it’s corporate or private delivery, dump trucks are very adaptable allowing you to operate in a variety of industries other than mining.

Even if you don’t live near a mine, construction firms, landscapers, real estate flippers and even residential property owners who need to dispose of significant volumes of trash may want your services.

A business that solves problems will never go out of market. If you’re an entrepreneur or planning to start a business soon, look for a problem that others are having and try to address it. Make your company transparent, recruit the proper people and maintain a high level of ethics. If you do that, success is inevitable.

© 2022 Justice Ndlovu

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