7 Small Town Businesses That Never Fail

Summary

This video outlines seven small business ideas that are proven to have low failure rates, especially for aspiring entrepreneurs in small towns. The ideas include home repair, self-storage, laundromats, vending machines, property rentals, trucking, and agriculture. Each business offers solid success potential, backed by statistics and insights. The video emphasizes the importance of strategic planning, location, and niche specialization. Additionally, Warren Buffett’s advice on investing in yourself is shared as a key to long-term entrepreneurial success.

Takeaways

• 😀 Starting a business in a small town can be a rewarding opportunity with less competition and lower costs.
• 😀 Home repair and renovation is a lucrative business with high demand, even during economic downturns, making it a low-risk option.
• 😀 The self-storage industry is booming with over 51,000 facilities in the U.S., making it a great investment in small towns.
• 😀 Laundromats have a 95% success rate and offer a low-maintenance, passive income business model.
• 😀 Vending machines are a low-investment business with minimal management required and a 90% success rate.
• 😀 Residential and commercial rental properties are a reliable investment with steady cash flow and long-term value appreciation.
• 😀 Trucking and transportation is a $700 billion industry, with opportunities for local delivery or long-haul trucking in small towns.
• 😀 Agriculture offers great potential in small towns, with a success rate of 88% for small farmers and ranchers.
• 😀 Warren Buffett’s advice: the best investment is in yourself—continuously improve your skills and knowledge to increase business success.
• 😀 Specializing in underserved niches in home repair (e.g., bathroom renovations or fence installation) can increase your business potential.
• 😀 Location is key for businesses like self-storage, laundromats, and vending machines—high-traffic areas can boost your chances of success.

Q & A

What are the seven small business ideas mentioned in the video?

The seven small business ideas discussed are: Home Repair and Renovation, Self-Storage Facilities, Laundromats, Vending Machines, Residential and Commercial Rentals, Trucking and Transportation, and Agriculture.

Why is the Home Repair and Renovation business considered a low-risk venture?

The Home Repair and Renovation business is low-risk because there is always demand for repair work, and people will continue to need maintenance and renovations for their homes. The industry also proved resilient during economic downturns, with spending on home repairs even increasing during the 2020 economic contraction.

How can someone without home repair skills enter the industry?

Someone without the necessary home repair skills can start by working for an existing home repair business. They can learn on the job and specialize in a particular area such as drywalling or cabinet installation. Over time, they can build their skills and eventually start their own business.

What makes Self-Storage Facilities a good business idea in small towns?

Self-Storage Facilities are a great business idea in small towns because there is high demand for storage, especially in rural areas where large companies might not operate. The overhead costs are low, and the business can generate steady income with minimal management. It's a proven low-risk investment with a $29 billion annual industry in the U.S.

What is the expected return on investment for a laundromat business?

The laundromat business has a cash-on-cash return of 20-35%, and it boasts a high success rate of 95%. It is also a relatively passive business model, requiring minimal day-to-day effort once it is set up.

What factors should be considered when starting a laundromat business?

When starting a laundromat, key factors to consider include choosing the right location, investing in modern machines, offering additional services like dry cleaning, and ensuring the environment is inviting and safe. Additional features like Wi-Fi and vending machines can also make the business more attractive.

How can a vending machine business succeed in a small town?

A vending machine business can succeed in small towns by finding high-traffic locations such as schools, hospitals, gyms, and large workplaces like factories and warehouses. Consistent traffic is key, and offering products that are in demand, such as snacks and drinks, can attract customers.

What are the advantages of becoming a landlord in a small town?

Becoming a landlord in a small town offers steady, reliable returns with low risk. Rental properties tend to appreciate in value over time, and the consistent income from tenants can cover mortgage payments. It also offers the opportunity for passive income if you hire a property manager.

What is the success rate of the trucking and transportation business?

The trucking and transportation business has a 76% success rate. It is a massive industry with low capital requirements for local delivery services but higher regulatory demands for long-haul trucking.

Why is agriculture a low-risk business in small towns?

Agriculture is considered a low-risk business because it is a cornerstone of the local economy in rural areas. Small-scale farming has a high success rate (88%), and there is increasing demand for local and organic produce. However, environmental factors like droughts can still pose risks.

What is the importance of investing in yourself as an entrepreneur, according to Warren Buffett?

Warren Buffett emphasizes that the most important investment an entrepreneur can make is in themselves. By improving their knowledge, skills, and education, entrepreneurs can increase their chances of success and sustainability in their business ventures.

What type of businesses are considered part of the agriculture industry?

The agriculture industry includes farming, ranching, forestry, hunting, and fishing. Entrepreneurs can explore a variety of opportunities within agriculture, such as growing crops, raising animals, or supporting the agricultural sector through services like equipment repair and fertilizer sales.