Truth be told, many of us that want to start one business or the other are worried about the high rate of failure associated with running a business, be it at the initial or subsequent stage.
Research has shown that 20% of startups fail in the 1st year, 50% fail in the 5th year and 66% encounter failure by the 10th year. This is sad but true.
The story of a recent foodtech startup that shut down really touched me. I’ve always had the mindset that sale of food is one business that would thrive no matter what, and then hearing that? I had to ask people questions to reaffirm my thoughts about food businesses.
I got to understand that no matter the success rate of a business, be it high or low, the strategies you put in place to make the business succeed matter over 100%.
So, these seven businesses with high success rates are actually incredibly successful, even from my own research, added to experts’ opinion, but you still need the right strategies – marketing, location, aesthetics, quality, efficiency, trust and many others.
Every business has its own risk attached to it and the higher the return, the higher the risk.
1. The first on my list is Real Estate:
Success Rate: 86%
According to Andrew Carnegie: “90% of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined.”
Anyone disagrees? Well, I don’t.
The real estate business can be referred to as a wealth generator. You can enjoy monthly cash flow, through tenants’ rent, you can pay mortgages with this, and considering the fact that properties appreciate over a long-term basis, well, what do you think?
Buying rental properties with a loan and increasing your returns even more with time is a possibility and an advantage. It’s up to you if you want to hire a property manager or manage your property yourself.
2. Laundromats
Success Rate: 95%
Does anyone have a contrary opinion?
In this business, you can make money no matter what happens, even when there’s a lockdown; for those within neighbourhoods, all you need to do is stock up. People will always need to wash, dry and iron their clothes.
Interestingly, Laundromats can be run passively if you want, the machines are there to wash and dry the clothes themselves, the customers load and unload the clothes and all you need to do or employ people for is to focus on cleaning the place, making repairs, collecting your money, among others.
3. Self-storage facility
Success Rate: 93%
Real estate isn’t just about having tenants in your property, it can just be for goods storage. So many businessmen and women seek warehouses where they can store their goods securely.
Also, you could create a website where people book a storage unit online and move their goods in at the appointed time. This is similar to how hotels run right? Book online or offline.
4. Transportation business
Success Rate: 77%
In recent times, the sector has left me amazed. The rate at which it is thriving so well is really interesting, from everyday movements, to travels and tourism, logistics and others, this sector is moving really fast. Imagine you join the train and apply the right strategies?
E-commerce, the gig economy and online platforms are one of the drivers of this business
5. Essential goods store
Success Rate: 90%
You’d need to do a good research before delving into this. Location is key; find a public location with very low competition, what are the essentials needed in our everyday lives that are not really sold in that location?
You could have a supermarket that has everything required in our daily lives, but be sure to do a good research on the location and people.
6. Agricultural Businesses
Success Rate: 88%
I know someone is nodding a head in agreement to this right now.
Agricultural businesses are highly resilient with low failure rate and of course, the chain is long – farmers, suppliers of raw materials, producers and manufacturers, retailers, etc. This chain includes different businesses at every stop.
7. Dump Truck Businesses
Success Rate: 87.6%
“The mining industry has the highest survival rate among all sectors,” says Smallbiztrends.
Construction companies, real estate flippers, landscapers, residential areas, mining industries and others require dump trucks daily.
In an instance, starting a mining company is complex and capital intensive but you can capitalize on the stability of companies in the mining industry through this dump truck business. Your truck can be used to haul away coal and other materials being extracted from the mine.
All you need to do is buy the trucks and employ drivers to go to these locations after you create an initial connection with them by advertising your service.
There you have it, but always remember, efficiency and self-discipline are the key enablers to a successful business.
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