In an unpredictable and ever-changing business landscape, choosing a business venture that stands the test of time is paramount. But amidst recent global events and a challenging climate for business, that can be easier said than done.
If you are thinking of starting a new business, and you are concerned about the risk of failure, don’t worry. There are still some businesses out there that have an excellent chance of survival.
In this article, we take a look at 7 UK businesses with astonishingly low failure rates. Let’s get started.
1. Senior healthcare services
With an ageing population and an increasing focus on personalised care for the elderly, starting a business in this sector offers not only a stable foundation, but also a chance to make a meaningful impact.
As an essential service-based industry, the healthcare sector has experienced substantial growth over recent years. This year, the Office for National Statistics reported a 3.1% increase in care home occupancy between 1st March 2022 and 28th February 2023.
Meanwhile, it’s estimated that 144,000 additional care home beds are needed to meet population growth over the next decade, with the number of people aged over 80 in the UK forecast to increase by 1.1m between 2022 and 2032, to 4.5m.
The demand for healthcare services is broad and encompasses a diverse range of specialised areas, for example:
- At-home care: including medical care, assistance with daily activities, and companionship provided in the comfort of the patient’s home.
- Nursing care: skilled nursing, provided directly at the patient’s home or from a nursing home, for patients recovering from surgery or suffering from long-term illnesses.
- Dementia and Alzheimer’s care: specialised care for individuals with memory-related conditions.
- Hospice and palliative care: compassionate care for seniors with life-limiting illnesses, focusing on pain management, emotional support and enhancing the quality of life in their final stages.
2. Laundrettes and dry cleaning
The demand for convenient laundry and professional garment care remains consistent. In 2023, the global laundry care market is estimated to exceed £82bn, with a projected annual growth rate of 3.33%, making laundrettes a resilient venture even in testing times.
Laundrettes located in high-traffic areas not only offer entrepreneurs low failure rates, but straightforward management and minimal labour costs too.
With continuous cash flow and revenue-boosting opportunities, such as specialised cleaning services for delicate fabrics, garment alterations, and the sale of detergents, snacks and reading materials; laundrettes can not only meet the evolving needs of their customer base, but leverage other sources of income simultaneously.
3. IT services
In a world that is increasingly reliant on technology, the demand for IT services continues to soar.
Accelerated by the COVID-19 pandemic, many organisations have recognised the need for integrating digital technologies into their operations, particularly in areas such as remote work facilitation, software support and data security enhancement. This means a growing number of companies across the globe are embracing technological solutions as a fundamental aspect of their business strategies.
With ongoing digital transformation and the rise of automation, the global IT Services market is expected to reach approximately £96.33 billion by 2028.
Experts predict that cloud technology will continue expanding, propelling the demand for managed IT services across the market, and indicating concrete longevity.
With the constant movement of goods and people, the demand for efficient and reliable transportation is unwavering.
From road freight transport to delivery services, passenger transport and removal services – the dynamic needs of both businesses and individuals offers diverse opportunity to entrepreneurs who can tailor their services to specific markets and requirements.
Projections indicate that UK transportation expenditure is poised to reach £200bn by 2026, showing a notable increase from £185bn in 2021, illustrating not only the sector’s stability, but also its integral role in the overall economic framework.
5. Funeral services
While profiting from the sombre reality of life may seem distasteful, the undeniable truth is that the UK’s ageing population ensures a sustained demand for funeral services, making it a sector that not only offers profitability, but also the potential for long-term success.
The current market size measures in at more than £3bn, and while fiercely competitive, the key to thriving lies not just in providing an essential service, but in delivering a supportive, compassionate, and personalised experience.
The services provided by funeral homes and directors extend beyond the immediate ceremonies, including both pre and post support, which can include assisting families with paperwork, closing accounts, and notifying relevant agencies.
With the UK’s female workforce booming, changes in family structure and the desire to provide young children with educational opportunities, childcare is in constant demand.
The pandemic has reshaped the working world, allowing parents to manage their personal and professional lives more flexibly, meaning the return to work has become a much more viable and accessible option.
Last year, the market size of childcare day centres rose by 25%, demonstrating the resilience and adaptability of the childcare sector in response to the changing needs of families.
The childcare industry spans a broad spectrum of services, catering to the varying needs of parents and guardians. Entrepreneurs can explore opportunities such as:
- Day-care centres: Offering a safe and nurturing environment for children, while parents are at work or engaged in other commitments.
- After-school programmes: Providing a structured and educational setting for children outside of regular school hours.
- Nanny and babysitting services: Offering personalised and in-home care for families seeking one-to-one care for their children.
- Educational play centres: Creating a space that combines play and learning to contribute to a child’s cognitive and social development.
7. Barber shop
The seemingly ubiquitous barber shop has been a mainstay of the UK’s high streets for over a century.
With a constant demand for hair cuts, grooming and male personal care, barber shops are one of the UK’s most stable industries.
UK men pay a visit to the barber shop as often as every three weeks. In a July 2023 industry survey, 85% of barber shops either made a profit or broke even in the previous year, making it one of the UK’s most successful industries.
Barber shops differ in the range of services they provide, from those that provide a basic hair cutting and shaving service, to more professional grooming and hair dying services.
Thanks for reading
So there you have it, seven of the most stable businesses to start in the UK.
No matter what venture you choose to embark on, the key to success lies in understanding the specific demands of your target customers, adapting to changing landscapes, and, above all, delivering value.
If you need assistance forming your new company, we’re here to help. Contact our team of experts today to get started on your business journey.