Not all businesses are created equal. Some seem enticing but have fatal flaws that make consistent profitability nearly impossible. Before investing time and money into a new venture, it pays to understand the downsides.
Here are 5 types of businesses that look good on the surface but are actually quite poor ways to make money over the long term:
Owning a network of ATMs sounds lucrative – who wouldn’t want cash flowing in from machines you don’t have to actively manage? But the math doesn’t work.
Key Problems:
Verdict: Insufficient margins and unpredictable future of cash make ATM networks a poor investment.
Fulfilling orders through Amazon’s warehouses sounds smart, but relinquishing control to Amazon poses big risks.
Key Problems:
Verdict: Very little upside for individual sellers, and Amazon holds all the cards.
A cute boutique seems fun until the harsh realities of retail sink in. Here’s why retail stores are flawed:
Key Problems:
Verdict: Challenging unit economics and immense ecommerce competition make scaling boutiques incredibly difficult.
People may dream of opening the hot new restaurant in town, but the restaurant business is rife with issues.
Key Problems:
Verdict: With tiny profit margins and immense competition, restaurants are more lifestyle businesses than scalable ventures.
At first glance, hotels appear to be stable assets. Look closer and you’ll spot major vulnerabilities.
Key Problems:
Verdict: Asset heavy, low margin businesses with fickle demand and grueling management requirements.
Be very cautious before investing time or money into businesses with:
Of course there are exceptions, but tread carefully. Look for uncrowded playing fields and simple, scalable models instead. Your bank account will thank you.
What terrible business would you add to the list? Share below!
Have you ever dreamt of earning money while you sleep? That’s the beauty of passive…
Are you ready to take control of your finances? Whether you're just starting or looking…
When it comes to the success of any organization, effective leadership and management play pivotal…
Are you curious about cryptocurrency trading and how it works? You’re in the right place!…
Starting a business can feel like stepping into the unknown. You have a vision, perhaps…
Are you curious about how to make money online? Affiliate marketing might be the answer!…