Starting one of the 6 most failed businesses to avoid is not for everyone. After all, it can be quite a tedious experience, full of frustration and exhaustion, even for a highly profitable business. In business hard work doesn’t always mean success either. You could dedicate your life to your own company and it could still fail because of completely unrelated reasons. You have to be ready for absolutely everything and be constantly on the look out for new dangers and opportunities. Maybe our list of The 7 Most Profitable Businesses You Could Start can be a little helpful.
You could have a dream to start something of your own but business usually depends more on reality than your dreams. Your plans could be inapplicable, your ideas could be unrealistic. A combination of those would never work out. Even if you had the right conditions for a low-demand, high fail rate business, you are still facing a very high-risk situation which could really damage your finances. Aside from burning up your savings or sucking up loan money, badly planned out businesses can also wreck your nerves and nobody want a combination of the two. Considering how many organizations have had their untimely passing into a world of liabilities and/or legal trouble, you should be very careful with what exactly you should put your time and dedication in.
Statistics show that there are categories with higher-than-the-average rates of failure. You would probably see that a lot of these make complete sense just by the sole number of readily available such businesses. Others fail because their owners’ incompetence. Sometimes your business could fail because of nothing different than bad luck or unrelated changes in the economic situation of your region of operation. A lot of seemingly unrelated factors go into the reasons why small businesses fail. Some of them are mental and physical health, having unreasonable expectations, bad management and poor advertising. A lot of these affect the businesses you’ll see listed below.
6. Local Trucking
Trucking has been essential to the whole world’s economy for many decades now. It’s readily available all across the US from huge agencies and single small-time contractors alike. However, trucking is a tough business to run by yourself and certainly a high competition one.
5. Security Brokers and Dealers
Security is one of every single person’s concerns since the dawn of time. It is completely essential for people who live in risky areas to have a well-designed security system in place. However, just like any other business on this list, competitions is high and in this case, some very specific skills are required.
4. Eating Places
Opening a restaurant or a bakery is one of the most common small businesses. As a matter of fact, way too many of them emerge daily, making the competition fiercer than in many other types of businesses. Advertising and promotion are also a very difficult thing to do effectively in this case, and that’s why eating places are in our list of the 6 most failed businesses to avoid.
3. Grocery Stores
Grocery stores are a seemingly good idea. After all, not many people order their recipe ingredients and fresh produce online. However, grocery stores are really hard to operate when there are huge chains of supermarkets with branches everywhere.
2. Single-Family Housing Construction
This particular case has way too many risks in it even without any competition. You have to deal with suppliers, materials, legislation and local law hurdles, providing an adequate quality or dealing with the ramifications from the lack of such.
1. Plumbing, Heating, Air Conditioning
Another group of the more common small businesses to run, these sorts of services can be handled by a single person or by a small group of people. The problem is that there is an overly abundant competition and winning new clients can be very difficult. Adding the skills it takes to be the very best, this is easily the winner in the 6 most failed businesses to avoid.
