Starting and running your own business can be a lot of work. There can be a lot of tasks you need to keep up with, and sometimes it can feel like a neverending list of chores where you can never get ahead. This can lead to a state of overwhelm, which can cause a lot of distress. Due to this, some people may eventually give up on their businesses or not even fully follow through in starting one to begin with. Additionally, becoming an entrepreneur can involve a lot of risks. According to the U.S. Bureau of Labor Statistics, approximately 45% of new businesses fail within their first five years. If you start a new company and it ends up failing, you could lose a lot of money, time, and emotional, mental, and physical energy that you put into trying to make your business a success.
Many of us have also watched friends, family, and employers struggle with their companies, which can be disheartening. Those of us who are interested in starting our own businesses to become more financially independent may be discouraged when we realize that there are many roadblocks and obstacles we must overcome in our journey toward self-sufficiency via entrepreneurship.
Fortunately, there are some types of businesses that can help us avoid many of the barriers that others get stuck at. Once set up, these businesses don't require a lot of time, effort, or employees, and they don't have high failure rates like many other types of businesses. If you are looking for a reliable and proven way to help build your wealth, one of these ideas could be the right one for you. In this article, we will discuss the five best low-maintenance businesses with low failure rates, which include the following:
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Laundromat
Laundromats are simple, straightforward businesses that offer essential services to the community, which makes them able to withstand economic downturns. With customers laundering their own clothes, they require few to no employees (perhaps one attendant, if at all), routine cleaning, and occasional maintenance of the machines. By their nature, laundromats have many repeat customers, with a high level of cash flow coming into the business throughout the day. They are reported to have a 94.8% success rate within the first five years, and they are much more affordable businesses to get started than many may realize. This makes laundromats great low-maintenance, uncomplicated businesses to start that also have a low failure rate.
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Self-Storage Facility
Through modern technology, self-storage facilities can be largely automated businesses that can fully function with minimal employee or manager presence. The amount of employee presence required on-site will depend on different factors, including the size of the storage facility. With a modernized and primarily automated self-storage facility, there will still occasionally need to be people on site to do things like cleaning out abandoned storage units, physical maintenance of the property, etc. These duties can be performed by the owner, a part-time employee, or contracted out to a third-party company. Larger facilities may benefit from a full-time manager, but this expense would be relative to the size and profitability of the facility. Smaller facilities don't necessarily need an employee on-site every day of the week and can largely be operated remotely and by contracting out any necessary services.
Customers can rent available storage units online, sign-up for automatic bill payments, and access the storage facility with keyless entry. The site can be monitored and protected with security cameras, alarms, and fences. The business can also utilize a call center to handle customer service issues. There are entire management software systems designed to help automate self-storage facilities and can help streamline all of these various aspects. Customers can include everyone from homeowners and renters that need extra storage space for their personal belongings to business owners and collectors looking to store their equipment and collections. These businesses have a 92% success rate, with long-term customers and high demand for available storage units.
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Vending Machines
A vending machine business is a great business to get into, either as a side business with one or two machines or as a more serious business with many more machines. You can also start with a small number of machines and scale up as you go along. Starting out with one machine does not cost a lot of money, and you can even purchase a used one. In addition, this is a very low-maintenance business, and all you will have to do is find a place with high foot traffic to place your machine, continually stock it, and make any needed repairs over time. Typically, you will need to rent a space from other businesses to put your vending machine or make another agreement, such as giving them a percentage of your monthly profits. However, some establishments may allow you to place your machine on their property for free.
Your expenses will include the items you sell, the cost of gas you use to restock the machines, or hiring someone to restock them for you. You could also differentiate your machines by offering different types of drinks or snacks, such as healthier options or local products, which may help you get free locations to place your machines. Additionally, these items could be sold at a higher price than traditional vending machine items. Locations you could put your vending machines include local businesses, schools, college campuses, government buildings, breakrooms, grocery stores, etc.
One machine won't make you a huge amount of money, but it could generate a reliable income that you can use to help supplement your other earnings. If you continue to add machines to your business, this will increase your revenue, and you can build your way up to more substantial amounts of profit. If this would be a side business for you, restocking is something you could quickly do before or after work. If you have multiple machines, you can dedicate one afternoon or morning a week to restock them. This is a low-cost, low-maintenance business that requires minimal effort and no expertise and has a success rate of 82%. This makes vending machines an excellent way to get started in business or a great way to generate extra income while working a full-time job.
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Arcade Machines
Different from starting an entire arcade, you could start an arcade machine business that operates similarly to a vending machine business, focusing on placing one or two arcade machines in specific areas, such as a pizza parlor, bar, or bowling alley. Concentrating on just a few machines and not needing your own building like a traditional arcade makes this an affordable and accessible business option. Purchasing one or two machines won't break the bank, and the business can be easily implemented and managed, leveraging other people's real estate. You could purchase popular retro arcade machines like Pac-Man, Space Invaders, and Street Fighter, or you could opt to purchase newer state-of-the-art arcade machines.
This is a great business idea because it can enhance other businesses, making it appealing for them to allow you to put your machine in their establishment, possibly for free. For example, a fast-casual restaurant with a couple or even a handful of cool arcade games can offer an entirely different experience to its customers, increasing repeat business, customer loyalty, and enthusiasm while separating itself from the competition. Like a vending machine business, you could start with one or two machines and scale up gradually. Your only expenses would be the initial purchase of the machines, rental of space to put the machine, and any repairs over time. Some technical know-how could be helpful, especially with older machines, but generally speaking, this is a great hands-off low-effort business model.
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Parking Lots
A private parking lot can be a lucrative and low-maintenance business to invest in. You will need to be able to find a good location where there is a high demand for parking, but that high demand is what will elevate and almost ensure your chances of success. Everyone needs a place to park downtown, and by offering convenient, safe, and secure parking, you can almost guarantee a steady stream of income. A parking lot business can be anything from a small single-level lot with nothing more than an automated gate and payment machine to a multi-level enclosed concrete parking garage with stairs, elevators, security cameras, and charging stations for electric vehicles. Parking lots can be great value-added investments as you can increase their value by modernizing them with certain technologies.
Your business won't necessarily need any on-site employees, as parking lots and garages can operate as fully automated businesses. However, you will need to physically maintain your parking lot with asphalt repairs and fixing any technological components. Certain insurance coverage will be required, as well as access to capital to purchase or build your parking lot or garage. You will need good planning, organizational, and communication skills to get the project off the ground. Once it's up and running, though, your parking lot business will largely be a hands-off affair generating income around the clock.
Final Takeaways:
These are not glamorous businesses. Most kids dream of being an astronaut or professional athlete when they grow up, but few, if any, dream of owning a parking garage or a laundromat, let alone a self-storage facility. But that is part of their appeal. These are real-world businesses that facilitate the real-world needs of common, everyday people. All of these businesses have a few things in common. They all require few to no employees, have low levels of interaction with customers, are mostly necessities, and what they provide to consumers is financially accessible to most people. These are practical businesses that have proven themselves to be reliable and replicable models that generate dependable income for their owners.
Some of the more ambitious ideas on this list can seem intimidating if you have never started a business before. You may think to yourself, "How am I going to be able to buy a laundromat or build a self-storage facility?" However, with careful and responsible planning and dedicated and consistent action, an average ordinary person can do these sorts of things. Creating a well-detailed and thorough business plan can help you work through the details of how to start these kinds of businesses. Access to capital can be gained through business loans, grants, or investors. The high success rates of these types of businesses make them less risky for both you and lenders, making you more likely to get approved for business loans with favorable terms and low-interest rates.
Rome was not built in a day, and your laundromat won't be either. If you have the organizational strengths necessary to make small actionable steps happen, these can be real, viable business options for you. They can also serve as a bridge business to help you raise funds to pursue other projects. You won't become a millionaire in seven days, but these sorts of businesses can be used to help support you and your family or build generational wealth. However, you will need to take consistent action in order to make one of these businesses a reality.
Are You Starting a Business?
Are you in the process of planning and starting your own business? If so, InCorp can help. With our business entity formation services we can assist you in choosing and forming the correct business structure for you, such as a corporation or LLC. We also offer registered agent services in all 50 states, the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. Our business entity management system and iOS app can also help businesses stay on top of their important deadlines and due dates while providing easy access to vital business documents.