Low Risk Business Ideas to Help You Succeed

If you’re a small-town entrepreneur looking to start a business but worried about the embarrassment of failing and losing all your money, you’re not alone. In this post, we’ve covered seven proven small business ideas that have incredibly low failure rates. If you stay to the end, we’ve also included a valuable bonus tip from one of the most successful business people of all time to help you on your entrepreneurial journey.

But before we get to that secret, let’s answer the question: what makes these small-town businesses succeed when so many fail?

1. Home Repair and Renovation: People will always need repair work done around the house, and that’s why the home repair business is so appealing. In 2020, the U.S. economy shrank by 3.5 percent, but spending on home repair and renovations went up by 3 percent. This is a $420 billion industry, and small businesses make up a significant chunk of it.
2. Self-Storage Facilities: This $29 billion industry has over 51,000 storage facilities across the U.S., and 11 percent of U.S. households rent a storage unit. While the big companies concentrate around large cities, small towns offer a great opportunity for new entrepreneurs to enter this low-risk venture with high potential for steady income.
3. Laundromats: Laundromats offer low risk with high reward potential, especially in small towns with little competition. The industry claims a 95 percent success rate, and ongoing costs are minimal after the initial investment in equipment and upkeep.
4. Vending Machines: Vending machines are another low-risk, low-investment business with a 90 percent success rate. They can generate consistent income if placed in high-traffic locations like schools, hospitals, or factories.
5. Residential and Commercial Rentals: Becoming a landlord can offer a steady source of income with a success rate of 85 percent. Rental properties require reasonable maintenance, and mortgage options make it easier to get started.
6. Trucking and Transportation: Trucking is a $700 billion industry in the U.S., with transportation companies boasting a 76 percent success rate. Entrepreneurs can start small and scale up, either operating as owner-operators or expanding to hire more staff.
7. Agriculture: In many rural areas, agriculture is the cornerstone of the local economy, with a success rate of 88 percent. Entrepreneurs can start small with high-value crops like herbs and spices or offer agricultural support services like farm equipment repair.

Bonus Tip: “Invest in Yourself”
Warren Buffett, one of the greatest businessmen and investors, once said, “The most important investment you can make is in yourself.” Whether you want to start a trucking company or a vending machine route, investing in your skills, education, and knowledge is essential to long-term success. Read articles, take online courses, get certified, and continue learning to become a better businessperson.