The Safest and Riskiest Small Businesses

By  Shari Lifland

Thinking of starting your own business?  According to the latest data from Bizstats.com in Washington, D.C., you may want to eschew livestock breeding, mail order, and vending machine operations – they offer practically no chance of turning a profit. 

Bizstats.com started with the premise that one measure of risk is to compare relative percentages of profitable and loss businesses in a given industry. They used sole proprietorship data since net income or loss is not affected by owners' compensation.

Bizstats complied profit and loss information on 143 different types of business and came up with some interesting results:  Surveyors (# 1) came out on top, Catalog & Mail Order Sales Operations (# 143) came in last.  Antiques (# 137) and Gift Shops (# 138) may seem interesting, but they don’t offer much hope for profitability.  Better to consider dentistry (#7) or funeral services (#9).

The Top 10 Safest Businesses:

1. Surveying services (only 1% have net losses)
2. Water transportation - contract pilots
3. Bus & limo transportation - contract drivers
4. Optometrists
5. Other highway passenger transportation
6. Fuel oil dealers 
7. Dentists
8. Textile mill products
9. Funeral services
10. Painting & paperhanging contractors

The 10 Riskiest Businesses:

1. Hobby, toy & game shops
2. Boat dealers
3. Food & kindred products
4. Used merchandise & antique stores
5. Gift, novelty & souvenir shops
6. Women's ready-to-wear stores
7. Bookstores
8. Vending machine operations
9. Livestock breeding
10. Catalog & Mail Order Operations (82% have net losses)

Click below for the complete list of 143 businesses:

http://www.bizstats.com/sprisk.htm