Businesses that Never Fail? 6 Businesses with Amazingly Low Failure Rates [Backed by Data]

Most businesses fail. The question is, how can you have a business that doesn't fail? We've found six businesses with the lowest failure rate associated with them. This is all backed by data, because I think it's valid to be worried about having a business that fails. I mean, according to the US Bureau of Labor Statistics, 20% of US small businesses fail within the first year, then that jumps up to like 50% by year five, and after ten years, two-thirds of all businesses have gone under. That's not good odds—not great odds at all.

If we actually look at the data to figure out which ones have the highest likelihood of succeeding, then you can determine if you want to jump into those pools. I always talk about the most important decision you make: the first deal you do or the first business you start, because if the first one fails, your likelihood of taking the risk again is incredibly diminished. This is called your recency bias. So if your recency bias is winning, that's why we want small wins, and then you are more likely to go win again or take more risk. If your recency bias is losing or things feel bad, you're less likely to continue to take risks. So let's get to the data and see which businesses have the lowest "this is going to bankrupt me" potential.

Number one probably won't surprise my contrarian friends: laundromats. Laundromats have an amazingly low failure rate. According to Laundry Lux, laundromats have about a 94.8% success rate over a five-year period. Another study by the Chamber of Commerce in partnership with Speed Queen shows that they have about a 93% success rate. Somewhere in the 90s. Let's call it. Again, nothing's guaranteed in business, but that's one of the reasons I talk about these laundromats as my gateway drug to business buying.

Number two: rental property businesses. Andrew Carnegie said, "90% of all millionaires become so through owning real estate." So maybe it makes sense that they have an 85.3% success rate. Real estate is simple, with hard assets, monthly cash flow, and a relatively easy model.

Number three: self-storage facilities. With a 92% success rate, self-storage facilities have been one of the leading asset classes in real estate since 2008. Advances in technology make running these businesses remotely feasible and efficient.

Number four: transportation businesses, especially last-mile delivery. With a success rate of about 76.4%, transportation businesses are thriving in the e-commerce era. From short-haul trucking to Uber driving, there are various opportunities in this sector.

Number five: vending machine routes. Vending machine businesses have a success rate of over 90%. With a low startup cost and simple operations, vending machines are a great starter business for those looking to hustle and learn about business.

Number six: senior care centers. Surprisingly, senior care centers have a low failure rate. With changing demographics and government subsidies, this industry presents opportunities for those willing to navigate regulations and certifications.

So, there you have it: six businesses with the least likelihood to fail, at least according to the data. Which businesses do you want us to cover next?

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