Here are some of the most overrated businesses to start according to Kelly Spors and Kevin Salwen from the Yahoo Small Businesses page:
- Direct Sales From Home
- On-line Retail
- High-End Retail
- Independent Consulting
- Franchise Ownership
- Traffic-Driven Websites i.e. Financial Samurai, but also Facebook!
Almost 7 million have lost their jobs since this recession began, and the stock market doesn’t care about you. I do, and I’m worried that if 7 million new people can’t find steady income, and unemployment hits 11%, we will derail. You derail, we derail and our plans for becoming independently wealthy early goes down the drain.
If you’re out of a job, and are living off of unemployment and savings, whatever you do, don’t start a restaurant, spa or some other ridiculous high start-up cost venture. Please conserve every dollar you have and hold on until the new year. The stock market over-corrected on the downside, and looks to now be overshooting on the upside. The same thing happens with employment, and now firms will have to scramble to rehire talent given this “V-shaped” recovery we are experiencing.
It’s clear to me after walking around my neighborhood’s main strip that restaurants are the most common failure, largely because they’re in public view. If you fail as a independent consultant or direct sales agent at home, who knows? But also, who cares? It’s not like you just torpedoed your entire life savings because nobody wants to pay consulting advice to you!
Why can’t every restaurant serve great food, with excellent service, at a reasonable price is beyond me. We all know food margins are high, but it takes steady patronage and reasonable rents for restaurants to succeed.
As a food fanatic, and a person who wants to be surrounded by the best restaurants, I’m starting a new tab called “Restaurant Reviews” to help promote new stars and maybe get a free appetizer. I figure if I have a Peter Luger’s Steakhouse, Nobu, Gordon Ramsey, In-N-Out Burger, Ding Tai Fung Dim Sum, Le Bernardin, Naan N Curry, and La Pergola all within a 10 mile radius, life can’t get much better. Here’s a fantastic post I found highlighting how to start a restaurant. After reading this, I hope you will be discouraged and not take the risk!
However, if there are any courageous restaurateurs out there in San Francisco, New York, or Los Angeles who believe in quality, service, and need a voice, drop us an e-mail at firstname.lastname@example.org.
For the consumer, we have a great proposition for you. You know how often times Zagat or Yelp rates some restaurant one way, and you end up thinking “what the heck are these guys thinking?” We don’t want you to spend a ridiculous amount of money for an event you don’t enjoy. Why not let the Financial Samurai’s know what restaurant you are thinking about, and let us be your private tasters first? We’ll go on a mission, and report publicly, in a non-biased manner what we thought. Thumbs up you go and spend those big bucks on that restaurant. Thumbs down, you save your money and go to In-N-Out burger for $3 bucks a person!
We’re qualified because we are foodies, and in our 30 years of combined work experience, we’ve wined and dined clients at least once a week. Furthermore, it’s not just about expensive restaurants. We enjoy value too, as evidenced by our favorite burger joint. Let us know! San Francisco is where we’ll start.
THE 7TH OPTION
I agree with the above list completely, except for the 7th option. There are practically zero barriers to entry starting a “traffic-driven” website. Competition is fierce, with over 70,000 new blogs being started a day, but that just goes to prove my point. Anybody can do it! What people don’t know, is that RB and I have travelled 8 years into the future, and see Financial Samurai as one of the most popular personal finance sites in America! We’re going to have a stable of writers, and edit from anywhere in the world. We believe in ourselves and our venture, do you believe in yourself?
“Do what you love, and you’ll never work a day in your life!”
My suggestion is for everybody to start your own website and be their own boss. Leverage technology to be untethered from a cubicle, forever!
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Updated for 2017 and beyond.