Choose Wisely! 6 Very Difficult Businesses to AVOID

It's easier to make more money in some businesses than others, that's obvious. But what are the MOST difficult business sectors and should we avoid them?

From my 20 years in business building our companies and thousands of hours spent working in multiple industries, this video will outline what I think are the 6 most difficult businesses to avoid. However, what if your business is listed in this video? I'll also share some ways of tweaking the model so it can become more efficient and more importantly, more profitable.

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Who am I?
My name is James Sinclair and I'm the founder and CEO of The Partyman Group of Companies. I started building my business when I was just 16 as a family entertainer after that I built up an entertainment agency, then moved into building a leisure and day nursery businesses. Today we operate a £30 million business which includes leisure, childcare, outdoor attractions, commercial property, arts and crafts manufacturing as well as one of the UK’s oldest Ice cream companies; The Rossi Ice Cream Company.

#business #entrepreneur #businssowner

[brianbond]

I once dated a young woman who had a dog walking business; she started by handing out brochures then one dog, then 2 dogs….
By the time I was dating her, 4 years after started business, she had 4 employees and was earning same as me as a lawyer. Years later she had a free run dog kennel, had bought 2 acres, her parents were working for her with a total of 09 employees and she no longer worked. She had a grade 10 education.

[CameronFussner]

Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.

[shm]

"Hobby Jobs" is what I call a lot of these. Our town is full of little boutiques: fashion, florists, 'vintage' tat, candles, fine wines etc. they open, they last about a year, maybe two, then they're replaced with more of the same. They're started because the owner thinks it would be a nice thing to do. Not a solid foundation for a business!

[jtlvhpublic]

1) Restaurants
2) Dog Walking / Cupcake Making / Party Planning (low barrier to entry)
3) Clothes Shop (boutique retail)
4) Hotels
5) Online Marketplace selling (amazon / ebay / etsy )
6) Events

[jehovahsthiqness]

Types of businesses listed in the video:
1. Restaurants
2. Dog walking, Cupcakes, Party Planning
3. Clothes/Boutique/ Retail Stores
4. Hotels
5. Marketplace Selling e.g. eBay, Etsy, Amazon
6. Events

[devorahfriedman]

I have been running a dog walking business for about 15 years. I also do training, boarding dogs in my home. It has been very satisfying on many levels. It depends what you want. A decent living and a network with lots if connections for referrals, subcontracting etc. Not rich but comfortable and happy!

[pdrg]

Worried this was going to be a pure vanity online business seminar type video, but some genuinely interesting and considered (and probably hard-learnt) points in here. Worth watching.

[princephilip-vt]

I did business in Pest Control for 15 years. I was a terrible businessman but it had very low start up costs and very high mark up. So despite the snobbery you get from people when you tell them what you do, I did it. Insects are peoples number one fear. It astonished me how much money people would pay to get rid of the things. But these days the market is flooded, every man and his dog does it now. Getting the customer is the hardest thing.

[ralger]

In Canada here. My brother is a trustee for bankruptcy, restaurants and small retailers were his best clients . Average life span of either was three years from opening to bankruptcy. Unfortunately being a small business person is not for everybody, being passionate is not enough. Only fellow I know who has made it in restaurant business bought existing business including building. He hired three or four reliable foreign workers and treats them well. His daughter is going to buy him out when he fully retires, she's an accountant. My two cents worth. Cheers

[donnyjay]

If you have never been in the restaurant business, and fancy a go……Don’t. Work in restaurants 1st. Sitting in one eating nice food, isn’t even close to running it.

[marchlopez]

- Avoid investing in restaurants due to their high failure rate, low revenue per employee, high capex costs, fickle customers, and high turnover taxes.
- Invest in high barrier-to-entry sectors with high revenue per employee, such as accountancy.
- Find a good business model that can be scaled up and replicated.
- Avoid investing in dog walking, cupcake making, and party planning due to their low barriers to entry and high competition.
- Consider owning the business premises to keep overheads low and find a legacy brand with little competition.

[JjustBoy]

Having worked in retail for 15 years the biggest mistake I saw was holding onto stock for to long. I'd see stock that should of been reduced when it was relevant then being binned or sold for pennies. In my eyes to better to break even early and free up some cash than hold on hoping it'll one day sell

[pauluss]

Brilliant video and advice as always, eBay got my foot in the door to being self employed in my 20s, built up to over 25, 000+ feedbacks, suddenly one day my account suspended. Business shut over night. BIG lesson learned there, As you say James don't be reliant on one client/customer/selling platform for more than 10% of your income. I was 100% reliant on eBay

[PlasmaMongoose]

From what I heard, a number of long running boutique shops are owned by women who either have rich families or rich husbands who pay for the cost of maintaining these boutique shops, this is why they manage to stay in business despite typically only having one or two paying customers per day at the very most for years and years at a time.

[Raymondjohn]

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. I've been quite unsure about investing in this current market and at the same time I feel it's the best time to get started on the market, what are your thoughts?

[gglen]

You make some solid points. I have quite a few very successful friends who had years of sleepless nights and terror before they succeeded. One memorable quote on starting a business was: "If you're not scared shitless, you're doing it wrong."

[BederikStorm]

I like that you don't just say what businesses are difficult, you also explain how to improve them to make profitable.

[michaelerzuah]

Warren Buffett in one interview said. Its not about having ground breaking ideas or business nobody has ever done before. Its about doing whatever you're doing well and being consistent

[notch]

I would add this:

If you want to start your first business and it needs a premises, you will need to rent from a landlord, you will have to sign a personal guarantee for the lease period.

If that’s 5 years and the rent if £20k/ pa you are giving yourself a liability of £100, 000

Too many new business owners end up losing their house.

[joshuarizalforeman]

I established, and operated, a business in Hong Kong which was profitable and which lasted for 20 years, until I chose to retire, with a decent amount of cash The business provided educational services, tuition and consultation services. I now live in the Philippines where my business interests are in property, retail and hospitality - my wife and I own a coffee shop and a general store and numerous properties, which garner a decent income - if you are not prepared to work, then don't bother. I no longer work because I don't have to. I put in the effort and now I am reaping the benefits.