Are you considering starting a business but concerned about the high failure rates that often plague new ventures? You're not alone. Many businesses struggle and even fail within their first year. However, there are some business sectors that have remarkably high success rates. In this article, we'll explore some seemingly "boring" businesses that consistently achieve impressive success rates. Read on to discover these hidden gems!
Rental Real Estate
Success Rate: 85%
Rental real estate has long been a source of wealth for many, with the famous quote by Andrew Carnegie highlighting its significance: "90% of millionaires did it with Real Estate." While this business can be capital-intensive and requires financial savvy, it offers several enticing benefits:
Passive Income: You earn money without working 40 hours a week.
Depreciation Deduction: Non-cash tax deductions against rental income.
Capital Appreciation: Property value tends to increase over time.
Leverage: You can use other people's money to finance a significant portion of the asset.
Dump Truck Business
Success Rate: 87%
Dump truck businesses enjoy consistent revenues due to high demand across various industries. Construction companies, real estate flippers, landscapers, and miners all rely on dump trucks to remove unwanted materials. While startup costs for purchasing trucks can be relatively high, leasing is an option that eases entry into the market. It's crucial to have competent and safe drivers to maintain customer relationships.
Vending Machine Business
Success Rate: 90%
The vending machine business is a low-risk venture that often requires minimal overhead costs. Many vending businesses can be fully automated. With a high success rate of 90%, this business typically requires an investment of $4,000 to $7,000 in vending machines. It offers excellent income potential, flexible work hours, and remote monitoring.
Laundromats
Success Rate: 95%
Despite the perception that laundromats are unglamorous, they are a thriving industry. According to the Coin Laundry Association, laundromats generate $5 billion in combined annual revenue. Around 36% of investors consider it a part-time job, while 63% view it as full-time employment. Moreover, 70% of laundromat owners have two or fewer employees. With efficient processes in place, coin-operated laundromats require minimal labor.
Delis and Sandwich Shops
Success Rate: 96%
Delis and sandwich shops may not be as flashy as some other businesses, but they have a strong following among consumers. These businesses have stood the test of time, with innovations like sliced bread and toasted subs making a significant impact. According to the National Small Business Association, approximately 96% of delis and sandwich shops remain open after two years.
In Conclusion:
Whether you're intrigued by the prospects of running a laundromat, entering the rental real estate market, or exploring other businesses with high success rates, numerous options are available. Conduct thorough research and seek advice from fellow entrepreneurs to determine the best path for your own successful business journey.