Businesses that Always Fail? 7 Businesses with Shockingly High Failure Rates [Backed by Data]
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- čas přidán 15. 05. 2024
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just subscribed there! Super excited.
Finally! Been waiting for you to dive into podcasts. Just subscribed on Spotify.
I would love to see your thoughts on the Fitness Equipment Maintenance and Repair industry
How about sober living house's .
Can you explain wtf your opening line means?
"66% of entrepreneurs will never start a business..." then they, by the literal definition of the word, aren't entrepreneurs?
that's basically saying the same thing as "If my grandmother had wheels she would have been a bike."
High Failure rates/ Low Success rate
1)Gyms
2)ATMs
3)Dry Cleaners
4)Hotels
5)Amazon FBA (fulfilled by Amazon)
6)Retail Stores
Graph @ 9:28
7)Restaurants
High Success rates/Low Failure rates
8)Trucking
9)Senior Care Centers
10)Real Estate (Rental Properties)
11)Laundromat
Watch the video and make your own timestamps if you want them.
Cheers Geoff
Nice
Trucking is tough. Myself and two guys I used to work with all started our own trucking businesses at the same time. Years later, I'm the only survivor.
Where are Bars/Pubs? I heard they are only 5% successful after 5 years
Farming is another business with a high failure rate!
Amazon FBA - all of these things you mentioned literally happened to me. I made morale patches. I got lucky and made $100k+ profit (after expenses and amazon fees) in 6 months off of 1 patch design alone. Lots of luck. Quickly became a race to the bottom as clones and "black hat" tactics from (assumably) Chinese sellers started. They did crazy stuff like buy up all of your inventory then cancel the sale. This locks your inventory for a couple of weeks.
It was a fun and crazy and heartbreaking experience. Learned a lot. Don't recommend full time.
Great video as always!
"They did crazy stuff like buy up all of your inventory then cancel the sale. This locks your inventory for a couple of weeks." That's crazy. And Amazon, I imagine does not do jack about it. What a nasty environment to do business in.
@@KOSMOinfinite they definitely did not. It's difficult to "prove" and plus they (the hostile sellers) would just make more accounts and keep doing it. Only thing you can really do is place a limit on how many of a quantity can be ordered at a single transaction. It helped a bit but it's wild seeing the attacks go down in real time
Fantastic video! Totally broke my heart with these “build it and they will come” types of business- reality hurts
Thank you for sharing that, hearing the reality rather than the daydream is brilliant.
I'm so sorry to hear this. Business is hard enough without this in it.
Have been in the senior care industry for as a founder and operator of a top 100 senior care provider I must offer that this is a grueling highly labor intensive business that is currently in distress due to huge labor cost increases, shortage of labor, increasing regulations, reduced capacity to charge customers for these increasing costs, and unreasonable expectations of families which results in distress to the staff and high turnover. Common turnover rates range from 80 to 150%. Yes, there is inevitable increasing demand, but not a commensurate increase in capacity to for customers pay, and decreasing availability of labor which increases cost. The great people who serve our elderly 24 hours of every day are under appreciated in by a selfish culture, that also contributes to the difficulty of this industry.
not to mention potential of lawsuits from a bad event or bad employee abusing a patient or patients
She has no idea what she is talking about, sorry. She is doing these videos to get views and to sell her $10k courses with worthless info. ROI stands for return on investment not return on income. What kind of MBA does she have? It's finance 101 in undergrad. Also SBA does not provide any funds to small businesses it provides guarantees to the bank which may or may not provide a loan to a small business. I bet she's got some snake oil for sale as well.
I was a CNA; never again. You are doomed to overwork and neglect.
Personal care assistants for seniors are an underappreciated blessing to our society. It a huge challenge to find and keep good ones.
@@ronblack7870 - I used to sell liability insurance for this purpose .. now very hard to get
I owned a restaurant and a retail business for 7 plus years. Sold them during 2021 boom. I like to daydream about starting another business someday… but truthfully if you’re not there everyday as the owner. Chances are you’ll lose money or breakeven. It’s truly up to you to increase your margins in every possible way. No employee will care about your bottom line.
"No employee will care about your bottom line"
And why would they. Most business owners don't give two f**ks about their employees. And if you barely get by with the money you earn as an employee, why would you care about the success of your --owner-- employer?
@@--Mike-- You are right. Most owners don't. However I did. I care a lot about employees. And I have a few I am still friends with until this day!
@@--Mike-- Wow, really? Let's think about it for a bit. You don't care, the business closes, you have no job!
Repeat every few years, or every few months. Not a great plan.
@@tripwire8457if a business fails, it's not because the employees don't rip their asses off for their boss, it's because the boss is a bad businessman. I can get a job at every corner, but my boss won't get another employee like me that fast.
Times have changed.
Then give employees equity so bottom line becomes their interest. It's not impossible for employee-owned companies to go bad, but in my experience they tend to be the best to deal with.
Amazon FBA used to be a good gig. No longer. Everything you said is absolutely true. I used to do a half mil a year with FBA for many years. I bailed out and am very happy I did. I now tell everyone that is thinking about it to think again. It is not a good business anymore. Actually it isn't a business, it is a job. Anyone who can fire you at any time like Amazon does is not a business partner, they are your boss.
Same thing happened to me. Amazon doesn’t care. You are one of 500,000 sellers they don’t care
Amazon is trash I wish more people would see that.
@@martinestrada6969 I wish more people were like me who NEVER ever used Amazon (since I am used to delayed gratification). OR I wish more people would stop using Amazon and support local businesses instead.
to be honest, everything in life is like that.
We ran a distribution, retail & also online shop now.
But no one know when our manufacturer will suddenly stop selling products to us.
Amazon fees for sellers are atrocious.
It constantly amazes me how many people want to start restaurants. the dream business, they always want to start a restaurant and yet its just about one of the single most difficult businesses there is, get ready to never do anything but live and breath in that restaurant and the failure rate is massive.
Might be because a lot of home cooks think they are great chefs, but are delusional. And even when they are, their creations isn't necessarily what most people want. And in a small place, there isn't much market, and in a big place, there is constant and brutal competition. Every bank should require their prospective restaurant owners to watch 10 seasons of kitchen nightmares and pass a test showing they understood how not to go about it before opening the purse.
@@bjornlangoren3002 Yes, over and over they tell me about how they've got the magic recipe. Wait until they find out what Grandmas secret recipe for glazed chicken and his wife makes lemon tarts that will blow your mind and the husband is a kind of legend at summer BBQ and believe this, you just try his hot wings, everyone tells him all summer "dude.. you GOT to sell these wowww".
But,
right as you point out. This does not actually transfer well into an actual profitable restaurant.
I'm also pretty sure I have seen that very thing on 'Kitchen Nightmares' where someone refused to change grandmas special recipe to whatever was the actual in-demand popular chicken dish. "but we can't, she passed away and we need to honor her".
The great home chefs may actually be the last people who should turn it into a restaurant.
Any business needs the creative guy and the business guy. Keep the creative guy away from the customers & the money !
I deal with self published creative types (books & documentaries) and 90% are really clueless. I'm like "I want to send you money, what is the price & payment options ?" and it takes multiple emails over several days before this information is finally revealed
Authors don't know how to sell books.
Film makers don't know how to sell DVD's.
Chefs don't know how to run a restaurant.
@@captain-poppleton This is a valuable observation. You don't want managers and admins creating menus or writing scripts either. People coming up with a dream business may not always think about those things.
In my experience, People who made their money in let's say construction or selling shoes, they decide to buy a but the food business is a totally different beast
Start a food truck before you own a restaurant
I'm no expert, but that seems like great advice. I've seen several trucks become brick and mortar in my town.
Yeah or open a farmers market stall.
More have a following but that's a great way to
This is a great idea and something I’ve espoused for years despite not being an expert.
It just seems to have a lower barrier of entry in MOST markets and would be a great litmus test for future restaurant success.
And almost most importantly, YOU CAN FIGURE OUT WHERE YOUR BRICK & MORTAR SHOULD BE!
Having that ability to be perpetually mobile allows you to do the necessary research to find a concise location where to open.
A food truck has the additional benefit that you can drive it away when there's a load of "mostly peaceful protests" happening in your city.
Had a hotel. Extremely successful, low expenses but by God so much headache. I had manager managing the hotel but I was scared all the time. He may call me in the middle of the night. Some customer some authority.... So much can go wrong. Sold it just for the stress it gave me.
If you have a strong manager and maintenance service, the owner shouldn't ever be called out in the middle of the night. If it's enough of an emergency to call 911, you can't do anything about it anyway. And if it's not a 911 emergency, then site staff handle it.
If you own one hotel, maybe you are one of those staffed managers. Hopefully you can scale up enough to step away from site management and sleep through the night.
@@googiegress7459 Don't judge me. I don't micro manage. I left it I am happy now. Too much tension and no fix. You can't ignore and it's not always 911. In fact police was the only department that was most friendly to my business. 😅
This content style is AMAZING.
She’s nailing the mission of educational money making content being as (if not more) enjoyable as entertainment money taking content
Wife used to own a pick up dry cleaning store which means she jobbed out the actual dry cleaning. Still a tough gig at 70+ hr weeks and 6 days a week. She did good though. She thrived while others went under because she understood that in an overcrowded, perfectly competitive market what set her apart from everyone else was customer service. AND we made sure it looked as little as a typical dry cleaner as possible. She sold it and retired just before office dress codes started to get more casual so she went out on a high note. The guy who bought it changed a ton of stuff and didn't provide the same level of customer service and then complained that he was losing business. He didn't last two years.
Thank you so much for your fantastic content! Your style really resonates with me, and I appreciate the effort you put into each piece. While I bring 40 years of hands-on business experience to the table, your content production skills are truly remarkable. Keep up the amazing work! Oh, and congratulations on your new podcast, BigDeal. It sounds like an exciting venture exploring the deeper why behind business success. I'll definitely check it out!
Great content - This super informal style of content really suits you well, Codie
Started my first business at 31. Second at 46. Both successful. Sold both and retired at 57.
This lady has it all right. Wise advice: very realistic.
Most people that start a business don’t do the analysis up front. They are doomed before the doors open.
That said, if it’s a smart plan, and you work very hard, you can do well.
Good job, Codie Sanchez. 👍
Been working all my life both employment & entrepreneurship.
I feel motivated to finally start over, maybe rebrand or start a whole new business or strategy now that i have hit 30.
And what your businesses Mr. Successful?
What businesses did you do?
Most start with something they would love to do..instead of focusing on the money
GO FOR IT. !!!
Codie don’t ever stop creating this contents. I watch or read atleast one of your contents a day
I don't know how I stumbled onto this sight but WOW. As a former CPA and business advisor I am impressed by everything about this video from the facts and data to the presentation. I even appreciate the "Contrarian Thinking" clipboard. I am very much a contrarian on everything from GMO's, The Flint Water Crisis to election results and just about anything else. I believe that if there was more actual thinking there would be more contrarians...
There is 24 hour gym in the local mall. NEXT DOOR there is an empty shopfront. I went into the gym and asked how many people they have go to the gym, they said 200/day and I saw one dusty whey powder kinda hidden in the corner somewhere, so I’m going to sell vitamins, supplements and all the stuff gym people are all about, because gym people are cultist and that equals money, wish me good luck
I knew someone that opened a smoothie place next door to a gym. They are doing pretty good. Healthy smooties or some all natural junk fruits with lots of sugar. Gotta hook them somehow...
LA Fitness made a lot of money having the smoothie bars in the gym. But a lot more having 98% of subscribers show up once every two years...
This is the best video! Thank you for all of the contact! Super helpful! I've been looking around my community and neighborhood I would love to own a small business❤
I had a friend who had a dry cleaner 30 years ago. He made a lot of money. I considered buying a dry cleaner but it seemed to be changing too much. The business I intended to buy is no longer in business.
Just found you today, but as a biz owner one of the best videos I've ever seen. The style, the content & facts are all on point. Great job.
I work as a cook in a restaurant and i can say making money in restaurant business in tough. Although spoilage can be controlled to the minimum (repurpose the chicken bones from your roast chicken to cook into broth and brown sauce; fry chicken skins that are otherwise thrown away from chicken tenders. ), so depending on how you repurpose the ingredients that are otherwise thrown away and make it into a sellable product. Another point the host forgot to mention is breakage. The more people that work in an establishment, the higher chance of breakage. But overall, it's a tough business to stay afloat because of expensive rental and manpower costs.
The way to make money in F&B is to do grab and go stores where there is no dine in customers. There's a cap to how many dine in customers you can serve a day(customers only come during lunch and dinner time; at most you could only do 2 turnovers)but there's no cap to how many takeaway orders you can do a day. So for grab and go stores, you just need to make sure you cook good food and serve it fast and efficient. Plus, grab and go stores rental is a lot lower(rental is also determined by square feet), requires a lot lesser manpower(3 full time staff per shift, so 6 full time staff for a 16 hour operation) and upfront cost will be a lot lower because there is no tableware and cutlery that you need to buy.
spot on... thank you... all true...
Restaurant business is very easy to make money when a person knows how. The issue is the vast majority of people do not know how.
A good way to earn money in food is catering. Almost no fixed expenses, no expensive location, no waste on food, etc.. You know upfront for how manny people you have to cook. Suppose you have a party for 150 people on a saterday evening. You discussed the menu and the price with the customer, even for a modest menu, you get easily 30 to 40 euro/dollar per head. you start with 3 or 4 people on saterday morning, work the day and serve in the evening. you have 5 to 6k in revenue, about 1K5 in food cost and about the same in labour cost, take an other 500 in expenses (fridges, van, equipment, gas ..) and you net 1K5 to 2K for one day work. THis can work if you build a good reputation.
The Chipotle business model
@@dehermannen2419 bro, catering requires much higher upfront costs. You need to buy trucks and lorries to deliver your cooked food to clients house. Catering business depends on a lot of marketing too. You need to pump initial capital into marketing to get your brand out. Plus, you will need to hire more staff to cook several different dishes for multiple different clients at different timings. Grab and go stores that sells finger food and proper meals are still the way to go. Much smaller storefront (spend lesser money on rental) and minimal manpower required. Lesser upfront costs too(purchase fridge and freezers, deepfryers, grillers, sink, cooking stove etc. Plus grab and go stores there is no cap to how many customers you could serve a day. The only thing that is stopping you is your staff ability to handle the amount of customers a day and maintaining the quality of food.
I never use an ATM.Instead I go to a grocery store that offers cash back. I by a bag of chips and get cash back. No charge.
ATM: Accessory To Mugging
Some grocery stores are charging a fee now.
Everything sucks. Everything that doesn’t currently suck will eventually suck.
@@BillLaBrieMost bank cards reimburse fees. If yours doesn't, fire your bank. If you're not in a cash business needing to deposit and withdraw till-money frequently, go online-only, since they have far less expenses. (I recommend Ally; this is not a sponsored plug).
Or use your bank's ATMs. Plan ahead a little.
The cost of eating a bag of chips isn’t cheap. You be 1. Fat 2. Ugly 3. Bad health plus the actual cost and getting you used to low quality foods. Sounds cheaper to pay atm fee
Codie, I’ve never seen your channel until today. I like you. Keep up the good work! 😊
Love the honesty! That is the main reason why she got my follow a long time ago! Keep up that honesty and great content!!
Subscribed immediately, I remember watching a video of you long time ago and silly me didn't subscribe, and lost the content for a lot of time, luckily it got recommended again. Your content is gold
I admire Codi's honesty. She's like the trustworthy older sibling or cousin who gives excellent advice and teaches with a method similar to that of PBS.
Really enjoyed this video (first time watching one of yours). I appreciate your straight-forward approach and professionalism without any “ums” “ahhs”. Nice work!
In trucking, the last mile is the hardest mile especially if it's a combination rig. You have a lot of stops. There are restricted routes. The roads are not always wide enough. The four-wheelers always get in the way and don't let you merge. You don't know whether or not they have a dock and where it is. You might have to block traffic to unload, or you might have to back in off the street that doesn't have enough space.
I am looking to start my own online business. This is a great video. Now I know what to avoid when starting a business.
97% of gamblers literally quit before hitting it big
Lol
Good joke. If they quit, how would they "literally" know what was about to happen or when.
SMART BECAUSE 3% ONLY HITS
Best degen advice 😂
97% of gamblers quit before hitting it big because they go broke and have nothing left to gamble
Go to your local community college and enroll in a classes teaching plumbing, electrical, appliance repair. Yes, it take a two year commitment to learn a trade. Add some business and accounting classes as well. When you've completed your education go to work for a small company where the owner is in their early 60's. Chances are you can buy their going business as it's difficult to sell these businesses because you need to learn a skilled trade. Within 10 years you can have 6 to 10 technicians / trucks out earning serious income. The plumbing business and electrical contractors that I know make serious money. That's my two cents.
It takes 4 years minimum to qualify as a tradesman. After that a person may put in a few more years of specialised certification.
@Art-is-craft For most trades, it takes eight years to be considered a journeyman. And twelve years to become a master. Technical college (associate degree) usually is credited as double, so two years of schooling and four year of hands-on field experience to become a journeyman. I'm a master of two trades with a mechanical engineering degree and a masters degree in business. It took 44 years to reach this level of education.
This is much better advice for starting a business than many of her suggestions.
@@lockman004
A degree is not a trade nor is it a profession. It is an academic endeavour. The work experience is the profession.
@@Art-is-craft I'm guessing that you've never been to a trade school? The unions and industry use classroom education to accelerate the students development. They often involve either internships or in the case of unions the students attend class one day a week. If you want to move up quickly or to eventually own a business you need to learn thing like estimating, system design, building codes, industry standards, and specification writing. If your goal is to learn how to pull wire or twist pipe, yes, then you'd be correct you can learn that on the job. Chances of advancement or knowing enough to own and successfully operate a technology based company are nil. Take the time when young and learn to learn, join trade associations and earn industry standard credentials it will multiply your income and you won't spend your career on your hands and knees wearing out your body. That's what I did and I made a great income and preserved my heath.
I’m glad you appeared on my suggested videos. Loved this video. You earned a new subscriber here!
When the Fed Ex delivery dude drops the package, lol. Great information, subbed!
I love your content thanks for clearifying things
Good job❤
Thanks Codie very informative video as usual...
Thank you, often wondered about many of these businesses. Thanks for including some success stories.
WOW! This was an amazing video, thank you for doing this!
Congratulations Codie and team for reaching 1m!
I remember watching when you had less than half, GO GIRL. CAN'T WAIT to see you at GWVL
❤❤❤you thank you!!
There's a very successful Korean grocery store on my block. Unbelievable. Been there over 30 years. The doors on this place are like a turnstile, and they sell very little Korean food because this area is Spanish, and Portuguese ! But at least now I can appreciate spoilage.
Thanks for opening up a dialogue to have a conversation about these things. That's the most important part!
Thank you for the video! Great information.
I'm interested to know where we can have these statistics and similar ones. It would be very helpful.
Thank you!
Thanks for sharing this information. It really opened my eyes to the harsh realities of entrepreneurship. We should be extra cautious when choosing our business.
Love the analysis! Thank you!
Can’t think about the massive production behind this video, so I need to write it down: thank you for the content! I’ve been enlightened by your content since 2023 and it just keeps getting better. Codie is just *chefs kiss*
So glad I found this video
You did a good job on all the research
Saved me a lot of time :)
totally agree with you on restaurants - having worked for several large and small restaurant groups ( as finance head) - the most successful was a korean fried chicken fast food chain - we deliberately had small retail footprints to keep rent down and kept to a fairly simple offering .. that was straightforward to make. full service restaurants have a high failure rate for sure.
In-n-Out and a billion taco shops prove that limited menus and high-quality, craveable food creates high traffic and profits even at low margins with tacky decor.
YAASSS !! I love thisss !! Im actually moving to Austin Texas, Im starting an app and there is so much community in Austin. I love regular people who are CREATING and not just being consumers !!
That's awesome to hear! Welcome to Austin Texas. 🎊
Watch out for the heroin addicts, needles and violent homeless encampments…
Codi... you are amazing.. where will you be next. Addicted to you. Thank you!
HUGS AND BLESSINGS TOTHIS WOMAN!!! I get so inspired by her videos!!!
Senior Care centers Business isn't All roses. They are having difficulty hiring qualified people to care for the seniors. They are sued by the family members for mistreatment of their family member.
And because of the abuse cases states are constantly increasing the staffing requirements.
The ones that succeed often are the higher price facilities.
How many people are finding in-home care through some services which are also struggling to find workers.
And as you said, when the family is no longer able to pay the fees, you have to cut off the care.
Thank you, Codie. I would love to hear your thoughts on gas stations and convenience stores and daycares. Thank you!
Convenience store - you are going to be minimum wage business owner. There is a reason why many are owned by immigrants and the whole family is involved.
Gas stations without convenience store are crapchutes. With, can be profitable but dont expect to get rich.
The gym I belong to is owned by a bunch of doctors that use it as well for patient rehab. They have 3000 members at 55 a month and it’s always vacant and you can always get a machine…they are making bank man…and it part of their “business” so the write offs are fantastic
11:27 I love your use of Vaudeville, it's a forgotten genre that adds to your videos.
(9:50) So this is why my power button is loose. Too dang funny!!!!!
Thank you, really great information and a very concise manner. I'm looking forward to following you are learning more
Two best businesses in my experience: beauty and childcare. I spent most of my life as a teacher. I quit and went solo. I opened a day care center for young kids. Even started to franchise it out. Then invested into beauty salons.
Reason being is that people always need someone to look after their kids. And women always want to look attractive even in hard times. You're guaranteed to make money. And both businesses are not that expensive to set up.
How about a costume store. My Dad was convinced they only exist to launder money.
Mattress stores too! Never see anyone in 'em yet they continue renting out these huge retail spaces.
@@apathy25tx Plus, the mattresses are always on sale. No one are busting the doors down.
@@apathy25tx They tend to make a lot on how much they sell for with semi low upkeep, and when you have customers for say, hotels or other establishments that buy multiple mattresses in a day then you make a lot that way.
thanks, amazing content
you keep coming out with fire videos dude. thank you!
Dude?
I ate a potato for breakfast.
what a nice video. giving a different perspective on stuff, especially on Amazon FBA.
Rentals in Ontario Canada is a loosing business unless you can afford multiple properties and screen renters. If a renter doesn't want to pay rent it's 9 months to two years before you can get them kicked out.
Screening and very firm adherence to eviction protocol are the only things residential landlords have left to protect themselves against malicious tenants.
1. Set your screening criteria to demand at least 4 years out of the past 5 have a professional property management company landlord which has an office. They'll actually give a proper rental verification. And then you drive down to that office and have an in-person chat with the manager, and get every single scrap of dirt on the resident, because every dirty thing they did to the last one they will absolutely do to you. This is where you get all the neighbor complaints, the mean letters the resident sent in, late payments, NSFs, lease violation notices, etc. And if the tenant does not fit your screening criteria, knowing all that, you decline. If you don't get a rental verification back, you decline. If the only verifications they have are the homeless shelter, friends' couches they surfed on, and family, you decline. Because you can't trust those sources to tell the truth. It takes longer to get a tenant, but you spend a lot less on vacancy loss than you do on bad debt sent to collections for a destructive eviction.
2. If the lease says rent is due on the 1st and late on the 6th, then you always charge that late fee on the 6th and you send the X-day notice to pay or quit. And you keep up with that paperwork right up through eviction if they don't pay. Even coastal US landlords can get an eviction within 2 months of a nonpayment, assuming tenant doesn't end up paying and curing the violation. When you get lease violation reports, and you follow up with them and collect your evidence, you serve that X-day notice to perform or quit. And these notices stack up to allow you to get an eviction if the tenant ends up being such a disaster that they need to get out, but still somehow keep paying rent.
Separately from these two main points, you need to know your LL/T law and stay 100% by the book, leaving no error a professional tenant can take advantage of to loophole their way out of an eviction and restart the clock.
Keep up with your pest control so tenants who buy pests online and contaminate the property with them out of spite are foiled by your maintenance regimen.
Shop around for vendors based on quality and price, vet their insurance credentials, get estimates, and pay your invoices promptly.
There's a lot of little things to it, but draconian screening and adherence to eviction protocol are absolutely necessary.
You left out liquor stores. I'm 67 and have never seen one go out of business, and I've lived in 7 states.
Totally depends on State. Start one in Ohio and get back to us.
I’ve seen quite a few go out of business in the Dallas/Ft Worth area. That’s usually due to competition/market saturation, or because of changing demographics, but it does happen, there are at least 2 former liquor store locations within a mile of me.
Depends where you are. Some places strictly regulate from the licensing to the location requiring community approval. Those places can be a gold mine. Other places where it's no different than a sandwich shop in getting one established, not so much.
Liquor licenses are expensive in NJ and they don't give them out easily.
Thank you ❤ for pointing out the burdens.
Hi Codie, thanks for the info! May I ask these conclusions and data that are used. Is it only meant of US? I live in Europe - Netherlands, so I was wondering if those data could differ here
FBA isn't a good business. Wasn't bad up until 2021. The competition is insane. We have 150 plus SKUs on there that we manufacture ourselves. One fun fact...one of our products was doing $12k per month last summer. That one product now has 15 knock off competitors. 15! All vying for tiny little market for this niche product. All Chinese competitors. Don't even get me started on the review shenanigans and the increased Amazon fees. Up 50% year over year. Latest fun? You can't have too little inventory or too much otherwise you get another fee. We are actively moving our business off of Amazon.
same thing happened to us in Q4 of 2019. Had a nice niche spot with one other domestic seller. Our top SKU was selling 800 pc/month and then in ONE month we had 20+ overseas competitors selling straight knockoffs at 60-75% cheaper than our domestically produced product.
what niche?
@@MaKo_452 home decor, hobby products, storage and organization. Similar situation across all brands and SKUs.
@@markwrichards Yes I this is a problem as differentiation is hard and copying is easy. If you succeed with hard to copy differentiation and good branding, I think it is still good option to choose. But I am in supplement niche so much harder to enter and more regulated (also a consumable).
13:36 Of all the trucks you could have pointed at as an example of last mile delivery, you picked the one that does NOT do last mile delivery. It is a mobile shredding service for businesses that need sensitive documents destroyed.
Having been in trucking all my life, I think she is completely wrong in that section of the video. Yes, I made money, retired at 54, but I'm in a minority
I've heard trucking is super tight financially. Like, truckers are basically getting farmed.
Brilliant job! Fantastic video!
You got a thumbs up for the information, but also for the presentation. In this age where a lot of the content is churned out mechanically, and now by AI, it is good to see information coming directly from someone passionate, has a point of view, and is obviously directly involved in the content.
As a casual observer it seems like restaurants are one of the riskiest businesses to be in.
Have a friend that designs and installs kitchens for restaurants for decades. He’s seen retired couples open up restaurants multiple times over and lose their life savings. Just go work in one for two years and at least have a little experience.
Dealing weed. High success.
Not any more
😂
No need to market
It sells across the demographic......
Your market gags for your product.....
This video hit home. Parents owned a motel. On contaminated land (from former service station, not a drycleaner). Thanks gawd they never tried to open an on-site gym....
Awesome job on this video! Thanks for the data proof. 🙏 ❤️
Did the laundry mat business. So much time and effort and eventually realized the business owned me. Can be done if you set this as your primary source of income but as a side hustle, too time consuming.
I think a lot of businesses are like that. For people that have a regular job, real estate and stocks are probably the way to go. Buying stock is just buying into a business anyway. If a business is your full time job like a tech start up then it’s fine if it consumes all your time if your plan is to exit and sell to microsoft or google for millions and retire. Anything that takes up too much of your time is going to make it difficult to scale when all your time is sucked up by performing menial tasks. As a business owner, your job is to scale a business, not become an employee. If a business isn’t easily scaleable, then I wouldn’t touch it. That’s why I don’t like restaurants and most retail…too capital intensive to scale and also thin profit margins usually. You also have to have a lot of employees. Meanwhile, there are plenty of tech and financial companies that you can buy stock in that have fat profit margins and big returns on capital. Technology and software companies are easy to scale. Real estate used to be easy to scale. Growing a real estate portfolio is heavily dependent on the ability to do a cash out refinance and the mortgage rates now are terrible.
I CANNOT believe it's taken me this long to find this channel. Thanks @Codie for the quality content
I’ve found incredible value in this video. I own many many rentals in the Commerical and residential space in a few different states and one out of country and I own an energy service company that works all over North America. I’m still not as well versed as you are though and I just discovered you but wow I’m learning a lot
Love this video. Rich information here. Though, I think it's important to note that the Amazon FBA remark is only relevant if you're using the Private Label model. There are a number of structures that can used to sell on Amazon and, when combined with sound analytics, are quite profitable.
I just discovered your channel and I can’t stop watching your videos. I love your content
Yes, she is actually one of my favorite content creators.
Laundromats are not cheap to start. It actually costs around 500k-1.2 million to open one up from scratch when you factor in construction, permits, architect, lawyers, machines etc.
I've owned one.
Really? What about a small one with 8 washers and 4 dryers.
She's filming in a million dollar location.
A small one like you described won't make any money. She also said the average laundromat costs 200k-300k to start. The average laundromat has around 32 washers and 32 dryers. Many are twice that size.
Good luck with that.
I laughed my butt off at 9:49 😂 kudos to your editor for that one.
Great overview of businesses that fail and why. I had to LOL when about 10min into the video it looked like the guy pushing the cart in the background had a big screen TV fall off the cart, loaded it back onto the cart and continued on. I wonder if anything in that box got broke from that fall.
A lot of the businesses you recommend have margins so small that the landlord can quickly make not viable . Escalating rents on commercial properties have forced major chains in my area to completely close
Hope the landlords are enjoying having thousands of vacant square footage!
I've been an Amazon Seller since 2015. I was actually making a six figure income from 2019-2022. Now it has tumbled and it's going to be very tough to bring it back up. The amount of competition specifically the Chinese sellers, Wall Street money, worldwide competition are taking over the market. Don't let any of those tiktok gurus fool you. The profit margins for this type of business is in the single digits at best.
People are starting to recognize the customer service and quality problems associated with buying Chinese. I don't think it'll ever get back to where it was before, unless Amazon embargoes them because of federal trade restrictions.
I'm surprised self storage wasn't featured. That seems to be a relatively stable high profit model.
Love this video! Thank you!!!
Wish me luck then…With my Beach Hotel in the Philippines….we open next year!
I really hope the FTC wins their lawsuit against Amazon because of what they’re doing to small businesses & to consumers. I shop on Amazon all the time because it’s convenient. I’m just too lazy to be an activist. Amazon just doesn’t play fair against small businesses.
I have my own truck brokerage business-making a pretty decent living. Just wondering … How could someone so young be so smart and articulate! Really enjoyed listening to you. Thanks for posting. You’ve got my brain percolating. Just subscribed.
how about a mini storage place? Yes, the real estate and building the units takes $$$$$$, but afterwards, you get repeat customers, a subscription model, you can add services like hauling & moving, sell supplies, etc.
If gyms don't start and put a stop to women being allowed to use the gyms as their personal Tik-Tok and Onlyfans video studios, the gyms start-up failure rates will son be at 100%!
66% of entrepreneurs never start a business? That's not an entrepreneur then, that's a talker.
They're using a loose definition of entrepreneur. Some open a franchise. Some buy an existing business.
Even worse then owning a dry cleaning business is being the landlord. The landlord will get the bill for remediation of the property.
I strait up do not have the effort or desire to start a business of any kind, but it's cool stuff to learn.
"66% of entrepreneurs will never start a business . . ." Then they aren't entrepreneurs, are they?
On point!!
On rentals, you have to deal with people who don't pay and won't leave.
I can't believe she says hotels suck because they are real estate, not a business, and you rely on depriciation. Then she later recomends people do a rentals (real estate investing) as a business. In my opinion, you are better off just investing in the stock market, or in reits if you want real estate exposure.
Hotels are easy to boot people out with law enforcement without a court order. Housing laws don't apply in most areas unless the stay in longer than 30 days. Hence, most hotels have a 30 day max stay policy before you have to check out to ensure their rights are protected.
I'm in year 3 of my restaurant. In the process of moving, location and customer retention is everything. A great product, amazing staff and excellent customer service. It's a very hard business but and extremely rewar business.
Thank you for this info. Also I'm in the Austin area, and it's great to see non-chain/franchised businesses. We need more mom and pop shops/services. Thank you.
One of the things I've noticed lately about laundromats around our area is there placing cones inside the machines to take up space.
What kind of cones?
66% of entrepreneurs fail because they are too scared to start a business. Well, perhaps they aren't an entrepreneur after all. How is that being an entrepreneur? Just because I own a surfboard and live by the beach doesn't make me a skeg.
fair!
Who is an entrepreneur
@PN-ve9lf Someone who sees a need, starts a business to solve it, takes risks others won't take, in the hopes of making a difference.
No. It's because the financial system is so bad.. it's like a guillotine.. that's why now big corps are the only ones taking over..
You need money to start a business. Most people's money is being eaten up by high rents, inflated energy, food and healthcare costs.
I had a UPS store, in Canada, that nearly killed me. As a franchisee you are responsible for all the costs and the franchisor takes his profit from your sales, before you get any profit. YOu have little to no control over the lease of equipment, location, product, services or logistics. There is generally an advertising fee you pay to the franchisor, yet you have little control on how or where it is spent. Meanwhile locally, you create, buy or distribute to your local area. The value of the store varies on the status of the economy in your location. If it tanks so do you.
It’s sheer Gem Codie ♦️
Keep thriving.