What type of business is off-limits for a senior citizen?
In this category, taxis, limos, hearses, ambulances, and other vehicles for hire are included. While all drivers pay premium insurance programs, suffer during oil spikes, and have so many competitors, each faces its own set of risks.
Consider taxis: you have to pay $400,000 (which is noticeable even in a $1.8 million market) to buy a taxi license in New York City, where the number of taxis hasn’t been changed since 1937. Then you need to find dependable drivers to make money—unless you like exhausting 10-plus-hour shifts. Leveries’ welfare is based on their connection with local hotels and businesses. Network disaster, and you’re out.
• Apparel Stores
Your customers didn’t think positively about your bubble skirt last year. A slow season can give you an overfull inventory. Making your shop visible among big guys like Nordstrom and Urban Outfitters is a big step, even with enough marketing budget, which most new entrepreneurs lack. Howard Dawidowitz, a New York-based retail consultant, once said that there has to be a particular reason that you exist in the game.
• Restaurants and Bars
A New York-based food and restaurant consultant, Clark Wolf, thinks that food businesses are deceptively familiar. He said: “that’s part of the magic and part of the serious danger.”
Most restaurants fail because they don’t have enough money: preparing for opening day – from providing necessary items for the kitchen and dining space to acting following city health codes – can cost an arm and a leg. You should be aware that your staff will quit at a moment’s notice. Another thing to mention: Most food-service sellers prefer cash on delivery, so a bad week can make it difficult for you to buy next week’s ingredients.
A slice of this risky broad category includes vendors of handy-dandy cellphones and personal digital assistants. Even in the smallest towns in the U.S., many companies are hawking mobile devices, including big telecom companies like Sprint Nextel and Verizon. Low margins and rooted opponents result in high risk for independent dealerships.