With talk of inflation and a failing U.S. economy, it’s no surprise more Americans are looking into the entrepreneurial side of things and wanting to control their own fate. It seems since the Great American Resignation, more people are okay with leaving their jobs and investing in their own business.
To refresh your memory, a record number of people did just that back in 2021. According to the Department of Labor, that year the U.S. broke a number of records. For example: some 4.5 million Americans quit their jobs in November 2021 alone. And 20 million people resigned during the second half of that year.
And at the same time, there were a record number of job openings across the nation. The job market reached a record 6.4 million job openings (the highest number in history for one year). And an unemployment rate of 3.9 percent. Regardless of whether you are walking off the job or ‘quiet quitting’ (only doing the what the job requires), these record-breaking numbers likely attribute to Americans changing their attitudes about their work life. Ultimately, many want to control their own destiny.
That’s why I dug my feet in to find out if investing in your own business is a win, just what are the best businesses to pursue to make a profit. I wanted to take that a step further and find out which businesses are less likely to fail. I was actually somewhat surprised by what I found.
Check out these six businesses that have the lowest fail rates.
Source: Unconventional Acquisitions
Laundromats
If you’re like me, you might be surprised that laundromats made the list. But why not? Think about it — it’s a service everybody needs, even in a recession. They provide an essential need and they are extremely easy to manage. No large staff is required. You just make sure machines work and customers are satisfied. Stop in to collect your money.Self-storage facilities
Self-storage facilities may not be what you have in mind for an investment, but they do work! According to Unconventional Acquisitions, they have a 92% success rate.Technology makes these facilities a dream to run. With keyless entry, tracking systems, security systems and automated contracts you are able to run this business without much manual labor. And we haven’t even mentioned the value-add component. With self-storage facilities, you can improve and upgrade existing facilities. Which means you enhance the value of your investment.
Self-storage facilities are considered a low-risk business venture that’s both scalable and profitable.
Transportation
We all know how much we’ve depended on transportation in the last few years. During the pandemic, I was practically married to my laptop and Amazon. I didn’t really think about my shopping addiction was keeping transportation and logistic companies (UPS, FedEx, Amazon, etc.) in business. Transportation businesses have a 76.4% success rate.
I know I’m not stopping my shopping, so the transportation business isn’t going anywhere. So, why not invest in a short-distance trucking company or pick up a gig at a ride-sharing company. Startup costs are minimal and it’s a low risk investment.
Rental property
This is likely one of the more popular ways people look to increase their profits — invest in rental property. The experts say it is a solid investment with a 85.3% success rate.
Even if you don’t want to deal with a landlord, you don’t have to. Hire a property manager to handle the headaches while you plan that exoctic vacation. You get steady cash flowing through rental income and let’s not forget about the tax benefits that come with real estate investing, too.
If you’re looking for financial freedom, rental property could be your ticket.
Vending machines
If you’re thinking owning a vending machine is ‘ol school’, then think again! These babies have a 90+% success rate! People are going to snack! And that’s a good thing for you as you diversify your investments.
With a vending machine, you won’t need a lot of cash to get started. And you can just start with one and build up from there. You’ll need to learn about a few things to get it running like logistics, pricing, margins and managing a few contractors or running it by yourself. And the days of having junk food only vending machines are gone. Today’s vending machines have stepped it up a notch to provide everything healthy snacks to travel necessities.
Some even add a vending machine to upgrade their existing businesses. I went to the beach recently and was able to purchase my beach towel from a vending machine. So, the skies the limit!
Senior Care centers
With an aging parent, I should know the need for this business all too well. Senior care centers are a family caregivers answered prayer. And of course, I’m now learning it’s a fabulous investment opportunity. And the experts say it has a low failure rate.
The US population of the aging is growing quickly. According to recent U.S. census numbers, the elderly population grew by 4.9 million in 2020 — that’s nearly a 1,000% growth rate. And the demand for senior care centers is on the rise, too. Which is why it may make sense to invest in senior care centers.
Yes, it may be a bit more complex than the other businesses on this list, but it may be well worth the effort. For example, you’ll need to navigate zoning regulations and work with healthcare professionals who can provide top-notch care to residents.
But if you’re up for the challenge, senior care centers can be a rewarding and profitable investment.
