EP182: Top 5 Businesses Least Likely to Fail
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Did you know that according to the Small Business Administration, there are over 33.2 million small businesses across the United States?
That’s a lot! Sadly, of those businesses, 20% or 6 million are expected to fail in the first year of its opening. 😖😖
Talk about a buzzkill!
But hey, if 20% experience failure, that means that 80% are successfully navigating that critical first year.
And they’re not just surviving; they’re thriving. So, what’s their key to success?
Today, we’ll reveal the industries in which businesses not only endure but thrive.
These are the top five businesses boasting the lowest failure rates, where the odds, dare we say it, are stacked in your favor for once.
So let’s get started and see if 🎥 Lloyd from Dumb and Dumber was onto something after all…
But before we do, we need to tell you the story of the mangrove tree.
The mangrove tree stands as a powerful symbol of resilient and adaptable businesses, especially those within sectors such as healthcare, education, real estate, and professional services. In the face of challenging environmental conditions that often cause other “trees” (businesses) to falter, the mangrove stands firm and unyielding.
The unique ability of the mangrove tree to purify saltwater mirrors businesses capable of enduring any economic turbulence by offering services or products that remain consistently in demand.
Much like the mangrove is an indispensable component of its ecosystem, these businesses play a pivotal role in the lives of consumers and other enterprises, guaranteeing a steady and continuous demand.
Just like how a mangrove’s tangled roots keep it from eroding away and give it a solid base, thriving businesses make sure to build strong foundations.
These companies have solid operations, financial stability, and a bunch of loyal customers that help them stay strong even when things get tough.
Think about how the mangrove tree spreads its seeds and takes over new spots – it’s kind of like businesses that are up for change, getting creative, and exploring fresh markets. And just like how the mangrove recycles nutrients from its surroundings, successful businesses make the most of their resources, always tweaking their game plans to boost profits and keep things going strong. 🙌
In the ever-shifting world of business, being able to roll with the changes and stand the test of time really counts. Companies that show these mangrove-like traits don’t just hang in there; they flourish, spreading their wings and cementing their spot in the market.
Anyway, now that we’ve got a handle on why some businesses have a higher chance of biting the dust while others tend to thrive, let’s dive right into the top 5 businesses that statistically have a lower risk of flopping, and find out together what makes them tick.
Starting a business can feel like riding a roller coaster 🎢, but there’s one industry that seems to stay steady: real estate, boasting an impressively low 11.6% failure rate.
👉 And that’s not just a random number; it comes straight from a solid LendingTree analysis based on data from the US Bureau of Labor Statistics.
So, why does real estate seem to beat the odds?
Well, because people always need a place to call home, making it a constant demand, no matter how the stock market behaves. This unwavering demand, paired with the promise of attractive profits, makes real estate a robust choice, even when the economy is being fickle.
Plus, it’s relatively straightforward to get started and keep things running, which makes it quite appealing to aspiring entrepreneurs. Who are the usual suspects in this field? Think real estate agents, property managers, and rental companies. 🤓🤓
✔️ So when it comes to real estate, income-generating properties like apartments are the real champions.
These assets keep the money rolling in, even when the economy hits a rough patch.
Plus, when inflation creeps up, your property’s value goes up too. Oh, and let’s not forget the tax perks that come with real estate investments. Luckily for us, the government has a soft spot for real estate, and they show it through these tax benefits.
Let’s not forget that managing an apartment complex is surprisingly hassle-free. 😘😘
With a steady stream of income, properties that shrug off inflation, significant tax advantages, and easy operation, income-generating properties shine as the most resilient stars in the already strong real estate sector.
✔️ Now, let’s talk about the second top-notch contender in the low-failure-rate game: business services.
This category covers stuff like accounting, bookkeeping, and tax preparation, boasting a pretty solid 12.4% success rate.
According to that same LendingTree analysis, businesses dealing in the business services arena tend to outshine most other industries when it comes to staying afloat.
Why? Well, because they offer crucial support to other businesses, which keeps them on solid ground. Plus, these businesses can rake in some serious cash, helping them stay strong through turbulent times.
Starting and running them is also relatively smooth sailing, making them a smart choice for entrepreneurs just dipping their toes in the game.
Think of successful business services as the folks running accounting firms, bookkeeping outfits, and tax prep services—they’ve got the formula down to a science.
✔️ Let’s talk about the third ace in the low-failure-rate game: professional services.
This covers stuff like law firms, accounting outfits, and consulting wizards, boasting a solid 12.7% success rate.
According to the LendingTree analysis, businesses playing in the professional services field tend to keep their heads above water better than most.
Why’s that? Well, it’s because they offer specialized services that need top-notch skills, allowing them to charge premium rates and build a loyal customer base. Plus, these businesses can really bring in the bucks, helping them sail through any rough patches in the economy.
And guess what?
Getting them off the ground and running is relatively smooth, making them a smart pick for rookies in the game. Think of successful professional services as the experts running law firms, accounting shops, and consulting hotspots—they’ve got it all dialed in.
✔️ Let’s talk next about the fourth low-failure-rate champ: education businesses.
These include spots like tutoring centers, after-school hangouts, and language schools, clocking in with a solid 13.2% success rate. According to the LendingTree analysis, businesses rocking the education scene tend to stay afloat better than most others.
Why’s that? Well, because education is one of those must-have services that people always want.
Plus, these businesses can bring in some nice cash, helping them ride out any rough patches. And you know what else is cool? Getting them up and running isn’t too tricky, making them a smart choice for anyone just starting out.
✔️ Last, but certainly not least, are healthcare businesses.
Think medical practices, dentist offices, and pharmacies, holding strong with a 13.4% success rate.
According to the LendingTree analysis, businesses diving into healthcare tend to survive better than most. Well, as we saw during the pandemic, healthcare is one of those must-have services that we always need.
Plus, these businesses aren’t too challenging to start up, and they have a good cash flow, all of which helps stabilize them through any turbulence.
So, in a nutshell, venturing through the business jungle can be terrifying, but as our buddy Lloyd said in Dumb and Dumber, “there’s still a chance.” 😉😉
But hey, there are some areas statistically safer to explore.
Real estate, business services, professional services, education, and healthcare have shown they can weather the storms better than most. These fields offer essential services that folks always need, no matter how the economic winds blow, providing a bit of stability in this crazy world.
When you consider everything, like the chance to earn substantial income, the relatively easy start-up process, and the added benefits of real estate such as value resilience against inflation and generous tax breaks – these factors make these industries incredibly appealing to individuals interested in entering the business world, regardless of their level of experience.
So, while there are no guarantees in the business arena, getting involved in these sectors could potentially increase your chances of success. 💋
So what are you waiting for? Until next time – Cashflow Multipliers!
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