5 Worst Businesses to Start in 2024

I spend a lot of time talking about which businesses it might be good to buy or invest in. But what about which businesses to avoid?

Today we're going to talk about the worst businesses, why I (generally) don't invest in them, and how it all comes down to one thing: probability. What is the likelihood that the money I put in yields a return on my investment? And even if there's a return on my investment, how long will it take to see results? Is it worth your time, and mine? More often than not with these businesses, the answer is a resounding "no."

In this video I look at the studies, crunch the numbers and explain why these are the top businesses to avoid. Have you ever invested in one of these businesses? Did you find success or failure? I want to hear from you, comment below!

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All content on the Codie Sanchez YouTube channel reflects my own opinions and should NOT be taken as legal advice, financial advice, or investment advice. Please seek out the guidance of professionally trained and licensed individuals before making any decisions. Some links in the description may be affiliate links.

[ssjtruong]

1:02 ATM Machines/Routes
3:11 Amazon FBA
6:15 Retail Stores
9:04 Restaurants
11:32 Hotels

Others mentioned: Gyms, Dry Cleaning


You’re welcome 😘

[SW-uruo]

I operate four restaurants in my town. I use the KISS method.
My first one cost me $50k to open. I bought used equipment. Went in a location that was previously a restaurant. Btw doing this I saved on build out… like the hood system… grease trap… fire suppression system etc.
been in business since 2014. My profits average 28%. I focus on a few dishes and make sure they are perfect and fresh ingredients.

[x-hash]

Finally, someone who has the balls to call out Amazon FBA as an unprofitable gig for most entrepreneur. Here's my story. I spent $5000 on Amazon FBA and lost. If I had bought $AMZ stock instead, I would have 4x my money without lifing a finger.

[Hangar_Films]

Would love a part two, but would also love a sort of middle-ground type list, so not bad businesses to invest in or a top 5 good list but a 5 middle ground businesses to consider with pros and cons on both sides. :)

[ChrisLoew]

#1 ATMs
#2 Amizon FBA (pick, pack, ship for you)
#3 Retail Stores (especially boutique mall)
#4 Resteraunts
#5 Hotel sole proprietor

[rumrunner]

I started a Drafting/Auto CAD business in the power industry (T&D/Substation design) 2 year ago and had a hard time getting clients. I started going to trade shows and vendor events which got me calls and even some pro bono work to demonstrate value and landed my 1st project and sent my 1st big (full month) invoice and it got paid today!!! I really enjoy the content! Keeps me motivated because man its easy to just give up!

[agraimentsyahung]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it. "You're not going to remember those expensive shoes you bought ten years ago, but you will remember every single morning when you look at your bank account that extra 0 in there. I promise, that's going to be way more fun to look at everyday", I pray that anyone who reads this will be successful in life

[alexanderlarsen]

Codie! Part 2 please! Several of these businesses I have also looked at and they never seemed all that worth while. Really enjoyed hearing an experts honest reasoning on why. Service businesses with low entry costs seem like a good place to start.

[VictoriaNavarro]

Yes please part 2 needed ! Can you cover nail / hair / masage spa category?

[michaelzumpano]

Love your videos. You got mad wisdom! I grew up in the retail men’s clothing business near the SF bay. One store supported three families… not an easy lift. Well, it wasn’t such a bad business in 1958, but by the mid 70’s major shopping-mall chain stores started taking over. Every season (there were six, early on) we would have to figure what was hot, what to dump and how we could compete with the chain stores. 2/3 through each season we would run a deep sale of 30-50% to clear the shelves. Trouble was, people waited for that to load up, and day-to-day sales depended on birthdays and the guy that needed an outfit for an event. We dominated in mid-priced suits (until Men’s Warehouse came along), formalwear (until they opened formalwear shops in the malls), and high-end disco (yeah this was a long time ago). Disco died and for the next twenty years our profits came from law enforcement uniforms and accessories. We closed before the year 2000 and made more money in liquidation than we had made in many years. My grandfather, who started the business in the early 20’s, drove inexpensive cars and put all his free cash into real estate. He died at 93 a happy multi-millionaire. Retail is like climbing Everest - there’s a formula for it now, but still, it doesn’t always work. When it works, like the Dutch Bros coffee kiosk that hit town recently, you make some tree. But even then, it can be short lived… 3 more Dutch Bros with separate owners are opening in our town this year. But the car washes, postal stores and laundromats just keep cranking, so there are a few opportunities and you already did a great video on those. Keep the lessons coming, we all need them!

[marisadario]

Please part 2! You have really sparked something in me. Have been looking at businesses for sale for a couple of years now and you have excellent navigational skills in entrepreneurship. Hanks so much! 😍

[Jom-jgty]

Love this video so much Codie! I also think that those businesses are too complicated for most people. Thank you for doing those videos for us!

[floridadivorce]

I have an online divorce preparation business. I have a VA that handles most of the work. I do our own SEO and pick up the phone. I travel all the time and have many repeating customers or referrals from prior clients. I have very little overhead and our differentiation is that most of our clients do not have to go to court.

[robertsegovia]

I'm old but I think your outstanding! You are a powerhouse! I have nothing but admiration for you. Keep up the great work and thank you.

[curtismcgee]

I'm buying an old private campground. Plan on upgrading services and expanding over the next few years.

[lornalives]

Yes to part 2 please! We own an escape room company, 6 years, and it's been hard to find comparable market data for benchmarking. And fin service providers that know what to to with this type of business. Looking forward to your thoughts on whether to keep going this route. Thanks for knowledge sharing, appreciate you!

[godfreymashale]

My friends and co workers always say real estate is the worst but personally real estate isn't all terrible honestly, but it's not as profitable as stock investments! Many seasoned investors understand that an investor must be both a dividend and a growth investor. For instance, if I managed to make a 1000% gain on Tesla and then pulled 85% of the profit out and decided to invest it in a lot of more stable dividend stocks like CVX, I would say diversify, but also use those growth opportunities to build capital to invest in dividend payers (or in cash flowing real estate). This is how I made my first million, and I also use an FA, his name is James Fletcher Brennan. Best wishes!

[tudly]

I love your common sense financial reasoning. Yes, please do a part 2.
Do you ever look at businesses in other countries like Australia?

[Riggsnic_co]

I appreciate your approach to teaching.. To my understanding this just proves how much we need an edge as investors because playing the market like everyone else just isn’t good enough, we just need to hold onto our hopes and wait to see how things turn out because market movements are almost always unpredictable. In my portfolio, I'm noticing more red than green.

[relaunchinglife]

I had a retail Bead store for 27 years - about 2500 SF, sold over $2 million yr - that's like $800 per sq foot? That's actually higher than Nordstrom. Sold a lot of gemstones I bought in India, high quality jewelry making supplies & precious metals. We also taught jewelry making classes every day. Decided to close in Covid & have been online since and it's never really been the same. It's not the same high touch, impulsive, high service business anymore where all the sparkling things call to them. And I miss my customers & helping them making something gorgeous. I go back & forth about opening back up again. But at 55 I think my retail days are over. Though I do entertain the idea of making an online course on how to open a successful retail Bead Store. (hint - say no to patchouli - think Wholefoods, not Walmart) Love your vids!