National Brokers Network

3 High Risk Industries in starting a business

riskMaking 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.

Photo labs

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.”

Confidentiality Agreement

In Consideration of the Vendor of the subject business, or any other business introduced to the Proposed Purchaser and their agent National Brokers Network (“the agent”) providing information to the Prospective Purchaser, the Prospective Purchaser agrees:

1. To keep all information provided confidential in respect to the subject business and any other business introduced to the Prospective Purchaser by the Agent.
2. That no information is to be disclosed by the Prospective Purchaser to any third party without consent by the Agent;
3. That it will not use for themselves. Or for others benefit, such information other than to Purchase the subject business or other business introduced by the Agent;
4. That any agreement to purchase the whole or portion of the business shall be exclusively through the Agent;
5. To immediately return to the Agent all such information and other details in written form including any drawings and any copies made of written information, notes, summaries or extracts of any document therefor if any when requested by the Agent;
6. Under no circumstances will the Prospective Purchaser make direct contact with the vendor of the subject business or other introduced business without the prior written consent of the Agent;
7. If the Prospective Purchaser breaches this agreement or buys the business direct from the Vendor, the Prospective purchaser is liable to and indemnifies the Agent for any and all losses the agent may incur including economic loss and loss of income.v

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