What is a Low-Risk Business?

[Mika]

If you want to launch your own business, you will have to do a lot of research but the most important area that your research should cover is related to the low-risk business idea. What business niche do you think has a low risk? Or let’s say which business has the high success rate?

In my opinion, as well as research, the rental property business is a low-risk business.

Investing in property and then collecting rental income is one of the highly successful business ventures. It is also a passive income source because you will continue to generate income without working. Actually, more money has been made in real estate than in all industries combined.

The rental property business has a success rate of 85 percent based on US Bureau of Labor data. There is a cash flow as you receive rent every month. You can even pay off your debt or mortgage from the rental income. Last but not least the value of your property will appreciate over the years.

 

[Yugocean]

There is no low risk business, not even rental property. Risk is always high. In India, rental property is among the high risk. Many land owners are in court battle to get the tenants out who are not paying rent or are paying very low rent (due to one side favourable law). Of course law also decides which is low risk or high risk.

 

[Sotherefore]

Investing in property and getting your rental income is a nice business idea . That is what people are doing and that we can classify it as a real estate business . It is among one of the most profitable business to establish.

So many people at the same time may also like to engage in business such as establishment of provision shop or at least a store that deals with selling of consumable products. These are the type of business that are risky because here the possibility of having failures in such a business is extremely low since most of these things are things that are needed on the daily basis.

It is important for us to research on the type of business we are establishing because establishing a good business at the wrong location is risky and the possibility of succeeding will be very low.

There are so many people who are establishing a business without proper research of the business and sometimes they might innocently establish a business that is risky. It's not really that the business may be risky naturally but because they are unfortunate to start the business at the wrong location making that business susceptible to failure .