So, you want to start your own business. Now you just need to decide what that business is going to be. There are some business opportunities out there that offer a very small amount of risk. However, the financial returns will not be huge. If you want to make some real money, then you might need to take a bit more of a gamble. These are some of the riskiest businesses out there, but if you succeed in them, the payoff will be a lot bigger.
The fashion industry moves fast. You might think that your products are popular but it only takes a matter of weeks for trends to change and you’ll end up stuck with massive amounts of stock that nobody has any interest in. If you don’t keep on top of the rapidly changing trends, you could find yourself being left behind. You will also struggle to compete with the big players in clothing retail. They will be able to sell clothes a lot cheaper than you will because they have enough stores nationwide to be able to buy in bulk on a big scale. That means that if you want open a successful clothing retailer, you’ll need to sell on the strength of your designs and quality, rather than your price. So, unless you are very confident that you have a really unique product, clothing retail may not be for you.
Opening a restaurant is perhaps one of the riskiest businesses out there. Almost all of them fail within the space of a year. There is just so much competition out there so diners are reluctant to try a new restaurant if they can get the same food at a familiar place, that they know for certain will be good. The key to opening a successful restaurant is having a unique concept that nobody else is offering. You also want to keep costs as low as possible in the early stages, focusing on good food and great service. There are plenty of companies like Butler Equipment that offer affordable, good quality kitchen equipment. When hiring staff, make sure you just employ a few, very experienced members.
A food retail store might seem like a fairly risk-free business to start, after all, everybody buys groceries. Unfortunately, the market is already cornered by the large multinational corporations that can undercut you on price. Niche food stores, selling organic and sustainable foods can offer something different to the large supermarkets. Even in this area, the competition has increased rapidly over the last ten years. If you think that you do have a unique take on food retail, you might be successful, but there are still a lot of hurdles to overcome. You will not be able to undercut the larger companies on price so you have to beat them on quality. You will also need to consider all of the health and safety legislation that goes along with selling food products.
That doesn’t mean that you shouldn’t go into business in these areas. You just need to be aware of the difficulties and be prepared for a difficult few years while you establish yourself.