So, you are gearing up to start a business, but don’t know which type is right for you. There are over 500 types of businesses out there, and not all of them are created equal. After all, more than half a million businesses are started every year in the US, with only 34% surviving after a decade.
While we cannot make a choice for you, we can tell you which four types of businesses have a higher success rate.
(1) Fitness
Health and fitness is one industry that’s experiencing unprecedented growth in the US. More Americans want to get fit and stay healthy than ever before. Whether you want to own a gym franchise, run a yoga studio or operate a personal training business, there are always enough people looking to get or stay in shape at any given time..
One of the key characteristics of these businesses is the membership model and recurring monthly fees, often set up with automatic payments from customers.
(2) Childcare or Daycare
Parents pay a pretty penny to make sure their kids (and pets) get proper care during the day or when they working, shopping and running errands. If you have the right facilities and staff, your childcare or education facility will get year-round business. And, operating expenses are usually low relative to other franchise businesses that require inventory, vehicle fleets, or high traffic locations.
(3) Real Estate/Property Management
While Real Estate franchises conventionally operate in the residential market, there are also many property management franchises that operate in the commercial sector. These can be good B2B franchises that don’t require prior related experience.
(4) Cleaning Services
Americans are busier than ever, which means they have less time to tidy up and clean their homes. When it comes to cleaning services, you can choose from three areas: residential, commercial or specialty cleaning (dry cleaning, car detailing). To give you an idea of the potential of this industry, the residential cleaning service franchise industry has grown by 2.8% over the past five years, to reach $943m in revenue in 2019.
References
https://www.fundera.com/blog/most-profitable-business
https://businesstown.com/articles/the-best-and-worst-businesses-you-can-start/
https://www.surepayroll.com/resources/blog/5-businesses-with-a-high-failure-rate
https://www.ibisworld.com/industry-trends/specialized-market-research-reports/business-franchises/repair-remodeling/residential-cleaning-service-franchises.html
