There are people every day who want to start their own business. These would-be entrepreneurs might have an idea for some innovative startup, or maybe they want to use a tried-and-true formula that seldom fails. Either way, there are certainly some risk elements if you’re going to sink some money into a new company and try to get it off the ground.
While every business involves risk, you might say some are more challenging than others. We’ll talk about five of those now, and we’ll also explain why each one can fail easily.
Healthcare facility is a blanket term that might include a hospital, a private doctor’s office, a clinic, or an urgent care center. Each one has the risks that go along with it.
However, one healthcare facility universality is that there’s usually plenty of competition. Most cities have many hospitals, urgent care centers, and so forth. With so many of these to choose from, it might be hard for you to establish a new one that takes some of the business from already existing alternatives.
Lawsuits can be another issue. Early in a healthcare facility’s existence, the right lawsuit can completely sink it, bankrupting you in the process.
For instance, someone might sue you because of bedsore. 80% of patients who develop bedsores do so within two weeks of hospitalization. 96% of pressure sores develop in three weeks.
If you do open up a healthcare facility, make sure you only hire highly trained staff who know how to watch out for that sort of thing. If you can garner a solid reputation, your facility might become a fixture after a little time has elapsed.
Restaurants fail frequently. In fact, you might have heard that over half of restaurants fail within the first year. Food trucks also fall into this category.
With restaurants, one bad review in a reputable publication might be enough to make your customer base stay away. You might have some dishes that people don’t like if you failed to workshop the menu enough.
If you undercook something and a customer gets sick within the first few months you’re in business, you might never recover from that. You can also lose too much business to another establishment nearby with a similar menu but has been around longer than you have.
The real estate industry is another risky one. You might get a realtor license and decide to go into business on your own rather than signing on with an established company.
That’s bold, and it might pay off, but it may not. The most common problem with real estate ventures is that you don’t know the region well enough. You might not be able to show your potential customers the right property in the correct area.
Also, the market can fluctuate, and a time might come right after you open your doors that no one wants to buy any property, either commercial or residential. Market changes can mean that everyone is holding off on buying or selling until things stabilize.
If no one really wants to buy or sell at a time when you’re trying to establish yourself, that can kill your momentum. You might have to close down the business before the eventual market recovery can save you.
Clothing stores are a risky venture at this point. One issue is that not as many people shop for clothing in person anymore. Most of them prefer to get their apparel from Amazon or other online entities.
Even if you open your store in an area where people still like to shop in person, clothing styles can change very rapidly. The clothing you choose to stock might be in vogue one moment, and the next, no one wants what you have to offer.
If you can’t sell clothing briskly, you might not be able to cover the rent on your store or stores for very long.
5Appliance Repair Stores
Appliance repair stores are one more risky venture. Maybe you open one that can fix computers or smartphones. Perhaps yours can repair vacuum cleaners, refrigerators, or microwaves.
Whatever it is you want to repair, this is another niche that’s usually very crowded. You have to battle with other repair stores that already exist, and you also have to hire and keep experts on staff. If you can’t pay them competitive wages, they’ll likely go with a competitor.
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