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Codie Sanchez’s YouTube video, Businesses that Never Fail? 6 Businesses with Amazingly Low Failure Rates, is a deep dive into business opportunities with historically high success rates. Codie, an entrepreneur and investor, explores various industries and business models that are more resilient to failure compared to traditional startups. Her focus is on businesses that provide steady cash flow and are less vulnerable to market disruptions. Below is a summary of the key points from the video.
Introduction
Codie Sanchez begins the video by discussing the stark reality that many new businesses fail. The conventional startup world is littered with statistics showing that around 90% of new businesses do not make it. However, she emphasizes that there are certain types of businesses that have lower failure rates and provide a more reliable path to entrepreneurship. These businesses often focus on recurring revenue, established demand, and low initial risk.
Codie introduces six business models that, according to her, are among the most successful and least likely to fail. Each model represents a different approach to entrepreneurship, but they share common traits such as stability, ease of operation, and scalability.
1. Self-Storage Facilities
The first business model Codie highlights is self-storage facilities. She explains that self-storage is a highly profitable and recession-resistant business. People always accumulate stuff, and as urbanization increases, people need more storage space. Whether it’s individuals storing personal belongings or businesses storing inventory, the demand for self-storage remains consistent over time.
The success of this business model is rooted in the fact that it operates on a low-touch, recurring revenue basis. Customers sign up for monthly contracts, and the facilities are relatively low-maintenance compared to other types of real estate. Self-storage also benefits from being relatively immune to the effects of economic downturns, as people downsize their living spaces and need storage during periods of financial stress.
Codie notes that the initial investment can be high for self-storage facilities, but once established, they tend to offer strong cash flow and have low operational costs. There is also the possibility of expansion or acquisition to scale the business.
2. Vending Machines
The second business model Codie talks about is vending machines. Though they may seem simple, vending machines offer a surprising level of stability and profitability. Vending machine businesses are incredibly scalable and flexible, and they require minimal overhead costs. With proper placement, these machines can generate consistent passive income, often with little day-to-day involvement.
Codie explains that the key to success with vending machines is strategic placement—choosing locations where foot traffic is high, such as office buildings, schools, hospitals, or gyms. The machines can be stocked with snacks, beverages, or even healthier options, depending on the needs of the location. As long as the machines are regularly replenished and maintained, they can continue generating revenue.
One of the attractive aspects of the vending machine business is the low barrier to entry. It’s possible to start with just a few machines and gradually scale up. Codie emphasizes that while the income from individual machines may seem small, the beauty of this business lies in the ability to replicate and grow a portfolio of machines over time.
3. Car Washes
Codie discusses car washes as the third business model with a low failure rate. She notes that car washes, particularly automatic and self-service ones, have become increasingly popular due to the convenience they offer to consumers. Whether it’s a subscription-based model for regular customers or a pay-per-wash system, car washes provide consistent, recurring revenue.
Car washes are often located in areas where people regularly need their cars cleaned, such as busy urban areas or near highways. Codie highlights that car washes have high-profit margins once established, especially in high-traffic locations. Many car washes also offer upsells, such as detailing services, which further boost revenue.
In addition to high margins, car washes have relatively low operational costs. They don’t require a large staff, and maintenance costs are predictable and manageable. Codie points out that automated car washes are particularly attractive because they can operate with minimal human interaction, offering a more streamlined, efficient process.
She also notes that car washes have demonstrated resilience during economic downturns, as people tend to value the convenience and cleanliness of their cars regardless of broader economic conditions. The recurring nature of the business also contributes to its stability.
4. Laundromats
Laundromats are another business with an impressively low failure rate, according to Codie. This business has a track record of providing stable, recession-resistant income. People will always need clean clothes, and laundromats meet this need by offering a self-service solution to individuals who either don’t have a washer and dryer at home or prefer the convenience of laundromat services.
Laundromats have multiple advantages. First, they typically require minimal staff or oversight, as the machines do most of the work. The business is also cash-based, meaning owners can generate income quickly. Once the machines are in place and functioning, operational costs are low. Laundromat owners can also create passive income streams by allowing customers to use the machines on a 24/7 basis.
Codie points out that laundromats also have a built-in resilience to economic downturns. During tough economic times, people often cut back on other expenses but continue to prioritize their basic needs, such as clean clothing. She also mentions the potential for upselling other services, like dry cleaning, or adding value with additional amenities such as snack bars or free Wi-Fi.
5. Online Content Creation and Monetization
Codie shifts gears to a modern business model—online content creation, specifically through platforms like YouTube, Instagram, or blogging. While content creation can seem highly competitive and unpredictable, Codie argues that there are ways to build sustainable income streams through consistent and strategic content production.
The success of content creation depends on several factors: choosing a profitable niche, building a loyal audience, and monetizing through multiple revenue streams such as ad revenue, affiliate marketing, sponsored posts, and even creating products or services. Codie stresses the importance of diversification, advising entrepreneurs to rely on more than one income stream to reduce risks.
The beauty of online content creation is its scalability. With minimal upfront costs, you can start small, and as your audience grows, so too can your revenue. Codie emphasizes that the failure rate for content creators is low if you are committed, have a clear niche, and understand how to engage with your audience. Over time, successful content creators can scale their operations, outsource work, and diversify into other profitable ventures.
6. Franchise Businesses
Finally, Codie discusses franchises as a low-risk way to start a business with a proven business model. Franchises are attractive because they come with brand recognition, an established customer base, and comprehensive support from the franchisor. By purchasing a franchise, entrepreneurs buy into a system that has already been tested and refined, reducing the risk of failure.
Codie explains that franchises span a variety of industries, from fast food to fitness centers to home services. The key to success with franchises is choosing the right brand and location. While franchise fees and initial investment can be high, the support and training provided by the franchisor can significantly increase the likelihood of success.
She highlights that franchises are particularly appealing for first-time business owners who might not have the experience or resources to build a business from scratch. By purchasing a franchise, entrepreneurs can benefit from the franchisor’s marketing efforts, operational systems, and ongoing support, which can lead to long-term profitability.
Conclusion
Codie concludes the video by reiterating that while no business is completely risk-free, certain industries and business models have a much lower failure rate. She encourages viewers to consider these resilient options if they want to start a business with a higher chance of success. Self-storage, vending machines, car washes, laundromats, online content creation, and franchises all offer opportunities for steady cash flow and long-term stability, making them viable options for aspiring entrepreneurs.
Codie emphasizes that these businesses thrive because they focus on recurring revenue, have predictable operational costs, and meet ongoing consumer needs. For entrepreneurs looking for lower-risk ventures, these models are worth considering.4o mini