Proven Business Ideas That Beat the Odds Explore ventures with low startup costs and strong long-term potential

YouLearnt Blog

June 14, 2025

Starting a business carries risk. According to the U.S. Bureau of Labor Statistics, around 20% of small businesses close within the first year, and approximately 50% fail by year five. By the tenth year, nearly two-thirds have shut down.

However, certain business models consistently show higher success rateslower startup costs, and greater operational stability. The following is a list of 11 low-risk business models that are more likely to succeed, based on available data and industry research (1) .

 

1. Laundromats

Success Rate: ~94%

Laundromats have some of the highest success rates among small businesses, with studies reporting between 93% and 94.8% remaining operational after five years (2) .

Key Advantages:

  • Steady demand regardless of economic conditions
  • Minimal staffing requirements
  • Potential for semi-passive management
     

2. Residential Rental Properties

Success Rate: ~85%

Owning residential rental units is a long-standing business model with an 85.3% survival rate beyond five years.

Key Advantages:

  • Regular income through rent
  • Property value appreciation over time
  • Tax benefits such as depreciation and 1031 exchanges
  • Option to hire property managers for passive management
     

3. Self-Storage Facilities

Success Rate: ~92%

Self-storage businesses report a 92% success rate, according to data from commercial property reports (3) .

Key Advantages:

  • Low operating costs
  • No residential tenants to manage
  • Can be automated and monitored remotely
  • Recession-resistant demand
     

4. Transportation & Delivery Services

Success Rate: ~76%

The transportation sector, including logistics and delivery services, has shown a 76.4% survival rate, driven by growth in e-commerce and gig work.

Key Advantages:

  • High demand for delivery and freight
  • Flexible entry options (personal vehicle, courier, fleet)
  • Scalable across local or long-distance routes

 

5. Vending Machine Routes

Success Rate: 82%–90%

Vending machine businesses remain a popular choice for individuals seeking low-maintenance income sources.

Key Advantages:

  • Low initial capital requirements
  • Minimal labor needs
  • Scalable by expanding machine locations
  • Operates 24/7 without supervision
     

6. Senior Care Homes

Success Rate: High (location-dependent)

With an aging population, the demand for assisted living and senior care continues to increase.

Key Advantages:

  • Strong demographic trends
  • Eligible for government support (Medicare/Medicaid)
  • Can operate in repurposed homes
  • Potential for high margins
     

7. Franchise Ownership

Success Rate: 85%+

Franchises often offer a proven system, established branding, and support from the parent company, contributing to their higher success rates.

Key Advantages:

  • Pre-built business model
  • Training and ongoing support
  • Easier access to funding
  • Higher trust from customers
     

8. ATM Route Businesses

Success Rate: High (unofficial data)

Operating ATMs involves placing machines in strategic locations and collecting transaction fees.

Key Advantages:

  • Passive income potential
  • Straightforward setup and maintenance
  • High scalability
  • Cash-based model
     

9. Digital Content Platforms (Newsletters, Blogs)

Success Rate: Moderate, with high upside

Content-based businesses can generate revenue through affiliate links, ads, digital products, or subscriptions.

Key Advantages:

  • Low-cost entry
  • Monetization through multiple channels
  • Scalable and location-independent
  • Requires only specialized knowledge or consistent content
     

10. Online Business Acquisition

Success Rate: Varies, generally safer than startups

Rather than starting a new venture, acquiring an existing online business via platforms like Flippa or Empire Flippers provides an option for immediate cash flow.

Key Advantages:

  • Already generating revenue
  • Business metrics available for analysis
  • Opportunity for negotiation or seller financing
  • Reduces time to profitability
     

11. Mobile Car Wash & Detailing Services

Success Rate: High for solo operators

This service-oriented business is low-cost, mobile, and highly in demand.

Key Advantages:

  • Minimal investment in tools and supplies
  • Flexible scheduling
  • High margins for personalized service
  • Easy to expand by hiring additional staff
     

Final Considerations

Low-risk business models can serve as ideal entry points for those new to entrepreneurship. While no venture is completely without risk, certain models offer a significantly higher probability of survival and profitability. Choosing a model that aligns with available capital, risk tolerance, and market demand can greatly improve outcomes.

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