5 low-failure-rate businesses worth considering

Statistics show that about 20% of newly established companies close in the first year, while nearly half do not survive the five-year threshold.

Starting a new business is always considered a high-risk decision. Statistics show that about 20% of newly established companies close within the first year, and nearly half do not survive the five-year mark. This means that choosing the right industry can be crucial for long-term success.

In certain sectors, failure rates are significantly lower than average. Focusing on such businesses can provide stability, predictable income, and a solid foundation for wealth creation.

Why it is important to choose low-risk sectors

Business failure can lead to not only financial losses but also debts, loss of confidence, and years of unfulfilled efforts. Sectors with low failure rates typically offer:

• stable demand,
• recurring revenue potential,
• scalability opportunities,
• the creation of assets that can be sold or transferred.

Therefore, along with passion, it is important to also consider the long-term sustainability and value of your business.

Business ideas with low failure rates

1. Self-storage

The self-storage business is considered one of the most resilient. During economic downturns, people continue to need storage space. Once started, it requires relatively low expenses and provides predictable cash flow.

2. Rental real estate

Real estate not only provides periodic income through rent but also long-term capital appreciation. It is considered one of the most reliable ways to create wealth due to high returns on investment and depreciation.

3. Senior care services

In the context of an aging population, demand in this sector continues to grow. From companionship for grandparents to specialized care, these services are considered not only profitable but also socially important.

4. Accounting and bookkeeping services

All businesses need accurate financial calculations. Accounting offers low startup costs and long-term relationships with clients, leading to stability and predictable revenues.

5. Healthcare services

Regardless of the economic situation, healthcare is always in demand. Clinics, specialized medical centers, and other healthcare services are considered some of the most stable business sectors.

What to consider before starting a business

Before choosing a business idea, it is important to:

• Evaluate investment requirements. Some sectors, such as real estate or storage, require significant initial capital.
• Consider skills. Choose the sector where your experience or transferable skills can provide a competitive advantage.
• Look at the long-term perspective. Can the business expand, and does it create assets that will bring value in the future?

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Choosing a business with a low failure rate is a smart move to ensure financial stability and create long-term value. While passion is an important driving force, the greatest results are achieved by those who combine their skills, resources, and sectors with stable demand.

Choosing the right sector not only increases the chance of survival but can also become a solid foundation for building wealth.

*The article was also prepared using data from AI․