4 Businesses With AMAZINGLY Low Failure Rates (You Can't Lose!)

Summary

This video script explores the idea that many traditional businesses fail due to high startup costs and operational risks, but highlights four business models with the lowest failure rates. These include online stores, content creation (blogging and YouTube), and real estate investment. The script explains how online businesses, especially those with low startup costs like drop shipping and print-on-demand, have minimal risk, and with time and persistence, success is more likely. Real estate is also recommended for its stability and long-term appreciation. Overall, the focus is on low-cost ventures that can thrive with minimal risk.

Takeaways

• 📊 According to the US Bureau of Labor Statistics, 20% of small businesses fail within the first year, and after 10 years, two-thirds have gone under.
• 💡 The traditional definition of business failure (bankruptcy or closure) is outdated, especially for online businesses where costs are significantly lower.
• 🛒 Launching an online store is one of the lowest-risk ventures because startup costs are minimal and can be as low as $3 a month.
• 🚀 Dropshipping and print-on-demand are cost-effective e-commerce models that eliminate the need for upfront inventory investment.
• 🏆 Successful online businesses like Bumblebee Linens and Caterpillar Crosstitch demonstrate the high potential of e-commerce with relatively low initial investments.
• ✍️ Starting a blog can cost almost nothing and has the potential to generate significant income through traffic and affiliate marketing over time.
• 📈 Blogging is likened to a stock that appreciates over time, with more content leading to higher search rankings and traffic.
• 🎥 Creating a YouTube channel is another zero-cost venture with the potential for substantial ad revenue and audience building.
• 🏘 Investing in real estate and rental properties is considered a low-risk, high-reward business model with favorable tax laws and the potential for passive income.
• 💼 The narrative that 9 out of 10 businesses fail is outdated, especially for online businesses where the cost of failure is significantly reduced.
• 💰 The key to success in modern business is leveraging low-cost online models and understanding that persistence and strategy can overcome traditional failure rates.

Q & A

What is the failure rate of US small businesses according to the US Bureau of Labor Statistics?

According to the US Bureau of Labor Statistics, 20% of US small businesses fail within the first year, 50% by year five, and two-thirds go under after ten years.

How does the government's definition of business failure differ from that of small business owners?

The government's definition of business failure is filing for bankruptcy or closing the business, while for small business owners, failure may not occur because some online businesses have very low startup and maintenance costs, making them more resilient.

Why are laundromats considered low-risk businesses by the government, and what are the drawbacks according to the speaker?

Laundromats are considered low-risk because everyone needs to do laundry, and they generate steady cash flow. However, the speaker argues that running a laundromat requires a large upfront investment and high risk, and it may not be appealing due to the nature of the work.

What is the first business type the speaker recommends with a low chance of failure?

The first business type recommended is starting an online store. It costs very little to start and run, and the overhead costs can be minimal, allowing businesses to survive longer.

What is drop shipping, and why is it considered a low-risk business model?

Drop shipping is a business model where a retailer takes orders online, but the supplier handles storing and shipping products to the customer. It is low-risk because there are no upfront inventory costs.

How does the speaker compare blogging to investing in stocks?

The speaker compares blogging to stocks by explaining that as you produce more content, traffic and earnings increase over time, much like a stock that consistently grows in value.

What is the primary downside of starting a blog according to the speaker?

The primary downside of starting a blog is that it takes a long time to generate income. The speaker mentions it took two years to start making money and three years to reach six figures annually.

How does the speaker describe the potential of YouTube as a business?

The speaker describes YouTube as a low-cost business with high potential, similar to blogging. It requires no initial investment besides a smartphone, and the more videos you upload, the more money you can make through ad revenue.

Why does the speaker believe real estate has a high success rate?

Real estate has a high success rate because it involves hard assets, provides consistent cash flow, and benefits from tax advantages like depreciation and 1031 exchanges, which allow investors to defer capital gains taxes.

What is the key takeaway regarding the claim that most businesses fail?

The key takeaway is that the traditional idea of most businesses failing is obsolete in today's online landscape. With the low startup costs of online businesses, failure is often a choice rather than an inevitability.