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7 Businesses That Almost Never Fail (Backed by Data) — Transcript

by Odetta Rockhead · 2,970 words · 451 segments · language en · Watch on YouTube

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0:00The allure of starting our own business
0:03is strong, but starting a business can
0:05be daunting, sometimes even terrifying,
0:08especially considering that most
0:11businesses fail. Let me give you some
0:13statistics. According to the US Bureau
0:16of Labor Statistics, 20% of small
0:19businesses actually fail within the
0:22first year, 50% of them fail within 5
0:25years, and 66% of them fail within 10
0:29years. But despite all that, some
0:32industries out there, they defy odds and
0:35they boast remarkable high success rates
0:39when it comes to businesses. So this is
0:41why understanding the success rate of
0:44different industries can actually help
0:46us to make more informed decisions and
0:49as such increase our chances of success.
0:53So, all that said, here are seven
0:55businesses that have a very low failure
0:58rate and in some cases have the
1:01potential to make as much as $7,000 a
1:05month or more based on other beginners
1:08who have launched these businesses and
1:11built them over time. And remember, I'm
1:14not here to guarantee that you're going
1:16to make $7,000 a month. That's not what
1:18this video is about. After all, it's for
1:21educational purposes only. But based on
1:24the businesses that I'm about to share
1:26and looking at case studies of people
1:28who have launched similar businesses,
1:30$7,000 a month or more is definitely
1:34possible. And listen, this is not just a
1:36list of businesses that I pulled out of
1:39a hat. Absolutely not. It's going to be
1:41backed by data as I'm going to share.
1:44And this is from reputable sources.
1:48going to show you the way from
1:53shift.
1:56>> Now you're watching the Rockstar Academy
1:59here on YouTube and I would like to
2:01welcome you especially if you are
2:03newcomer or a first timer but also if
2:07you're a tenure rockstar especially one
2:09of the ones who have been here from day
2:10one I just want to let you know that I'm
2:13extremely grateful for your support. Now
2:15my first business venture was actually a
2:18success but I had many failed business
2:21ventures since. But what having success
2:24with the first venture did for me was it
2:27gave me the confidence to launch several
2:30other businesses even though like I said
2:33several of them failed. What you're
2:35going to realize is that your first
2:36business venture it's going to set the
2:38tone for your entrepreneurial journey.
2:41And because of that, unfortunately, if
2:43it fails, that disappointment can
2:45actually discourage you from taking
2:48future risks. So that's why I'm sharing
2:51businesses that have a high propensity
2:54to succeed because by choosing a
2:56business with a high success rate, you
2:58actually increase your chances of
3:01experiencing that crucial first win. And
3:04what this is going to do, it's going to
3:05boost your confidence and motivate you
3:07to keep going. So, let's start with the
3:10first business. And like I said, these
3:12are all in different industries. So,
3:15this one may not be for you, but I'm
3:17certain that there is something on this
3:18list that you're going to find
3:20appealing. Now, the first one is the
3:22rental property business. And just to
3:24give you some statistics, like I alluded
3:27to earlier that I'll be sharing to back
3:29up these businesses with facts and not
3:32fiction or hypotheticals. 90% of
3:36millionaires got their wealth by
3:38investing in real estate. Rental
3:41property businesses have an 85.3%
3:46success rate based on the statistics out
3:48there. And the great news is there is a
3:51myth out there where people think that
3:53they must procure and own property to
3:56make money from real estate investment
3:59and that's not the case. So, make sure
4:01you stay tuned to get some ideas on how
4:03you can earn from real estate without
4:05procuring and owning property. And
4:08again, statistics actually show that
4:10more money has been made in real estate
4:13over the history of the United States
4:15than all other industrial investments
4:18combined. Real estate creates monthly
4:21cash flow with most expenses, things
4:24like utilities and mortgages being
4:26fixed, which means it makes it
4:29predictable, which is extremely good for
4:31business. The asset also typically
4:33appreciates in value over time if you
4:36own it. So that becomes an advantage.
4:38And what this does, it creates long-term
4:41capital gains while you're receiving
4:43cash flow on a regular basis. And of
4:45course, this is contingent on the type
4:47of real estate investment. Now, to start
4:49a rental property business without
4:52owning property, you can use what's
4:54referred to as rental arbitrage. And let
4:56me give you an example. So, we're in the
4:58process of buying a condominium. Let's
5:00say that condominium costs about
5:02$450,000.
5:04And the plan is to rent it short-term,
5:06whether on Airbnb or other short-term
5:08rental sites, for about $350 per night.
5:11assuming that it rents for 20 nights out
5:14of the 30 in a month. That's about
5:16$7,000 in rental income, of course,
5:19before expenses per month. Now, let's
5:22say we bought the condominium with a
5:24loan. And the mortgage is $3,000 plus
5:27whatever utilities and expenses that you
5:30have. Let's say your utilities and
5:32expenses amount to $1,000. So, your
5:35mortgage plus your utilities equates to
5:38$4,000 per month. When you deduct that
5:41from your rental income of $7,000, your
5:43profit per month is $3,000. And this is
5:46assuming you use a mortgage to procure
5:48this property. Let me give you an
5:50example of how you can make money from
5:52real estate without owning real estate
5:54using rental arbitrage. Let's say I
5:57procure this condo and I'm using it for
6:00long-term rental and I'm charging about
6:02$3,000 per month. and you decide to rent
6:05this condominium from me, the owner, for
6:08this $3,000 per month. Again, if you
6:12rent it short-term under the same terms
6:14that I explained earlier, your income is
6:17$7,000, which means you'd be making a
6:19profit of $4,000 per month after you pay
6:22me my mortgage. And then, let's say you
6:24take out $1,000 in expenses. That's a
6:27profit of $3,000. Remember, you don't
6:29earn the property. you're basically
6:31renting it from me and I'm giving you
6:33permission to rent it shortterm and
6:35you're doing so and making this profit
6:38without owning the property. That in
6:40essence is rental arbitrage. Now, the
6:42good thing about if you're able to own
6:44the property is that in most markets,
6:47the property is going to appreciate in
6:49value. So, your $450,000
6:51that you buy it for forecasted over 10
6:54years in a market like Jamaica could
6:56mean that it's now valued at $600,000.
6:59And I'm speaking based on my experience
7:02with this property that I'm sitting in,
7:04which when I bought it, I think it was
7:08400 close to $500,000 and 10 years later
7:11it's valued at over $2.5 million. So
7:15that just speaks to how your asset will
7:18continue to appreciate in value while
7:20you're earning money every month and
7:22getting that cash flow, which is what
7:24makes this one of the businesses that
7:26very rarely fails. So basically you'll
7:29be able to earn in two ways. Rental
7:31income and capital gains as the value of
7:35your property increases. Now frankly
7:37speaking there are not many assets out
7:39there that pay you in two different ways
7:42and pay you well in those two ways. Now
7:45that said in real estate you're less
7:48likely to lose money because the
7:50property will appreciate in value and
7:52it's also going to protect your
7:54investment. You can also hire property
7:56managers to turn a real estate business
7:59into a cash flowing asset that doesn't
8:02require your time. And because of that,
8:04you'd be making passive income. And just
8:07to give you some projections, the real
8:10estate industry is expected to increase
8:12in market value from $113
8:16trillion and this was in 2023 to $142
8:20trillion in 2028 or by 2028. Now, let's
8:25talk about the second business that
8:28actually has a 94.8%
8:31success rate over a 5-year period, and
8:34it's a laundromat. The failure rate is
8:37actually low because most laundromats,
8:39they don't require employees or they may
8:42require one to maybe three employees at
8:46most. They actually have an average cash
8:48on cash ROI or return on investment of
8:51up to 35%. Not many businesses are able
8:55to do that. Upfront payment is also what
8:58you get for the service because people
9:00will come in, they'll pay to get their
9:02clothing washed, ironed, and everything
9:04in advance and then they come back and
9:06collect it. Nothing beats upfront
9:08payment in a business versus when you
9:10offer the service or when you credit the
9:12service and get paid subsequently. It
9:15also requires very minimum inventory in
9:18some cases. And they are cash flowing
9:21businesses because most laundromats are
9:23open 24 hours a day. It's also a
9:26recessionp proof kind of business
9:28because people always need to wash their
9:30clothes regardless of the economy that
9:32we're in. Laundromats are also not
9:35impacted by seasonality and you're able
9:38to make money while you sleep. If you
9:40have a small staff contingent operating
9:42that laundromat on your behalf, one of
9:44the things a lot of people don't realize
9:46about laundromats is that they're not as
9:48expensive to own as most people think.
9:51Also unlike other brickandmortar
9:53businesses like clothing stores that may
9:55face challenges from e-commerce
9:58competition, laundromats they have no
10:00such problem. Laundromats can be
10:02financially rewarding if the basics such
10:06as the location, the machinery, the
10:09marketing and the maintenance are done
10:11right. The estimated revenue for this
10:14sector is US $15.35
10:18billion as of 2023 and it's expected to
10:21grow as per the compound annual growth
10:24rate or the CAGGR by 2.5% between 2023
10:29and 2028. So it's not going anywhere.
10:33Now the next business that has a very
10:36high chance of success or a low failure
10:38rate is a self storage business. And I'm
10:41seeing this a lot more now in Jamaica.
10:43It's always been popular across the
10:45globe, but I didn't think that in
10:47Jamaica people would actually be renting
10:49storage to stack their excess stuff in
10:52or to hoard in in some cases. The self
10:56storage business, it has a success rate
10:58of 92%
11:00for most owners and operators. And a
11:02self- storage business is basically a
11:05facility that rents out storage space
11:07whether to individuals or businesses on
11:09a short-term basis. And it's usually a
11:12monthto-month situation where the person
11:15rents it for a month and then somebody
11:17else is renting it for another month.
11:19Self- storage businesses, they have a
11:21relatively low startup cost compared to
11:24other real estate endeavors. And that's
11:26because building a small to midsize
11:29facility with multiple units from the
11:31ground up based on some of the research
11:33I've done will cost anywhere from if
11:36you're using containers to do it as
11:39little as $50,000 to as much as $500,000
11:43in some places. Also, I find that it's
11:46extremely easy to secure funding for a
11:49self- storage business. And this is due
11:51to its high success rate. And because of
11:53that, lenders consider self- storage
11:55businesses and the loans associated with
11:58them very low risk. Now, with modern
12:00technology, these businesses now can be
12:03operated with absolutely no employees
12:05like the ones I see popping up in
12:07Jamaica. They basically have a software
12:10and it's managed automatically. The
12:12contracts are done online. The billing
12:15system is automatic. It has security
12:17cameras and alarms and someone can just
12:19go there, open it, take out what they
12:21want and leave. It doesn't need any
12:24employees for it to function
12:25effectively. More than one in every 10
12:28US households actually rent a self
12:32storage unit. Believe it or not, the
12:34self- storage sector with a market cap
12:36of $ 39 billion US and this was from
12:402021 and a national average occupancy of
12:4492% which means that of all the units
12:47that you have or if you have just one
12:49unit, 92% of the time it's occupied,
12:52it's expected to have grown to close to
12:55$50 billion by 2026. Now, the next
12:59business on our list is a cleaning
13:01business. And this is one that you can
13:04start pretty small. You can start with a
13:06house cleaning service which is a very
13:08lowrisk business opportunity that demand
13:12is constantly increasing for. The demand
13:14is on the rise due to factors like
13:18increased remote work, busy lifestyles,
13:21and a growing elderly population who
13:24actually need a lot more assistance with
13:26household chores. If you have a knack
13:29for cleaning and organizing, this may be
13:32the ideal business for you. And starting
13:34a cleaning business doesn't require a
13:36large investment either. You mainly need
13:39cleaning supplies. You're going to need
13:40transportation and potentially some
13:43marketing materials unless you're able
13:45to find people who can refer your
13:47services after they have used it and
13:49leverage that effectively. Cleaning
13:51services often involve repeat customers
13:54who schedule regular cleanings which is
13:56going to provide you with a steady
13:58stream of income. The business model is
14:00also very straightforward making it very
14:03easy to understand beginner friendly and
14:06easy to manage even as a firsttime
14:09entrepreneur. It is estimated that
14:11nearly 10% of US households actually
14:14hire home cleaning services and the
14:17cleaning industry has a market value of
14:19over $170 billion. The market value
14:23however is expected to surpass $276
14:26billion by 2028 and the failure rate is
14:30estimated at about 50% for cleaning
14:34businesses within the first 5 years. So,
14:37this is still significantly lower than
14:39the average failure rate for all
14:41businesses out there, which is around
14:4266% within a 10-year period. Now, a
14:46vending business is the next one, and
14:47this is one that you can start small and
14:50grow as you gain experience. You can
14:52start with one vending machine as an
14:55example, and you can sell anything from
14:57snacks to drinks to electronics to
15:00personal items like sanitary napkins and
15:03over-the-counter medication, which
15:05actually does much better than I
15:06thought. The nice thing is you can
15:08actually rent vending machines or buy
15:11affordable used vending machines that
15:14require very minimal upkeep. You then
15:16will need to choose a location, choose
15:18your product, and then grow at a pace
15:20that you can handle. You'll be able to
15:22earn money 247s with minimal ongoing
15:26effort because obviously it operates on
15:28its own and it's selling around the
15:29clock. It has an extremely high success
15:31rate of approximately 82% and the
15:34vending machine industry has an
15:36estimated market value of over $60
15:40billion. And here's the best part. It's
15:42projected to grow to $150 billion or
15:47more in the next year or so. It's a
15:49low-risk investment with high returns
15:51and usually you're able to recoup your
15:54investment in about 12 to 18 months.
15:57Anything with that kind of ROI is pretty
15:59good if you ask me. Now, the next
16:01business that has a very low failure
16:03rate is senior care centers. And this is
16:06of course in the healthcare industry.
16:08Federal, state, and city government
16:11subsidies make senior care facilities a
16:13high success rate business model as
16:16nothing or no one pays more consistently
16:18than the government. Senior housing is
16:21one of those businesses that will always
16:23be in demand and the need for new senior
16:26care facilities is about to increase
16:28within the next few decades. Here is
16:31why. The number of Americans age 65 and
16:34above is expected to nearly double by60.
16:39An increase from 52 million to 95
16:43million. This is going to mean that
16:45seniors will make up 23% of the American
16:48population. It's kind of scary if you
16:50ask me, especially considering the low
16:53birth rate that the entire globe is
16:55experiencing. These numbers, they're
16:57going to influence the need for senior
16:59housing. And the demand is expected to
17:01rise from 1.5 million units to about 3.2
17:07million units by 2040. This means that
17:10to catch up with the demand, 100,000
17:12units per year for the next 15 to 17
17:16years is required. The other good thing
17:19about this business model is it also
17:21appears to be recession resistant from
17:25an investment perspective and protecting
17:27your investment. And this is because
17:29during economic declines, most people
17:32downsize their homes. And what they
17:34often do is relocate to senior housing
17:37for more convenient and affordable
17:39living conditions. Now, the last
17:41business model that tends to do very
17:44well is kids special needs care.
17:47Approximately 1 in six children born in
17:51the United States have one or more
17:53developmental disability or other
17:56developmental delays. The global autism
17:59spectrum disorder market, as an example,
18:01is projected to reach 9.5 billion by
18:042027. The market for special education
18:07software is expected to grow by 12.5%
18:11from 2021 to 2028. The demand for
18:14special needs care is increasing due to
18:17the increasing or the rising awareness
18:20of diagnosis rates of developmental
18:23disabilities. And because of that,
18:25government funding and subsidies are
18:26often available for special needs care
18:29centers and that way it provides
18:32financial stability for those who are
18:34willing to invest in this type of a
18:36business. A special need care center
18:38will provide essential services to
18:40children and their families which also
18:43allows you to make a positive impact on
18:45the communities. These centers can offer
18:48a wide range of services to include
18:51therapy, education and respite care and
18:55catering service to diversify needs. Now
18:58I must point out that starting a special
19:01needs care center will require
19:03specialized knowledge. It will require
19:05specialized licensing like some of the
19:08other businesses that I've shared here,
19:09but this one will also require a strict
19:12adherance to specific regulations. But
19:15here's the thing. Despite that, the
19:17potential for both financial and social
19:20reward because you're doing something
19:21good is amazing and I think it's worth
19:24it. But you're going to have to decide
19:26that. Rockstars, I hope you got value
19:28from this video. And until next time,
19:31walk

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