Making the decision to start your own business is a big step. Once you’ve made up your mind and are sure about it, the next step would be to think about what kind of business to start.
Or better yet, what businesses should you stay away from?
Here are three high-risk business ideas to ditch right now.
Entertainment rental stores
Can you remember the last time you set foot inside a video or game rental store? That’s right, we can’t either. Even when it was at its highest, the video rental business was never a big hit. If it was hard enough then, it’s sort of obsolete now. Streaming services such as Netflix are all the rage these days, so the video/game rental business is simply out of the question.
Not a lot of people print photos these days, and if they do, they’re quite selective about it. Photo finishing services are not highly sought after today, so there’s not much revenue to be had in this business.
Dry cleaning services
While the Laundromat and dry cleaning business sector is not dead, there’s not much profit to be had out of it either. It doesn’t matter whether you open a DIY coin Laundromat and dry cleaning shop at a densely populated area, because you just know you’ll already have competition there somewhere. The laundry business is quite simply a mature industry where there are low margins and low growth rates. Profitable? Yes, but not by much.
However, if you’re bent on getting into the dry cleaning service industry, your best bet would be to purchase an existing franchise – preferably one with an already established name. This will help you minimise risk, but will certainly cost you extra.
Of course, there are ways to spice up even the most mundane business ideas, granted you feel passionately about it. You can also enlist the help of business brokers Victoria to get valuable advice and an accurate forecast involving the market you are interested in penetrating. The important thing is to do market research and draft a business plan outlining the main idea, product or service, target market, and most importantly, the forecasted budget. As the famous saying goes, “if there’s a will, there’s a way.”