Millionaire lists restaurants among 3 worst businesses; netizens agree they can be hard to run

The decision on what business to start comes after intense research and analysis. While you should do your research, it's also important to pay heed to what experts in their respective industries have to say. In a video uploaded by Noah Kagan on his TikTok wall, he asked Codi Sanchez, a millionaire, to talk about the three types of business that she considers the worst.

"One retail storefront," she says at the beginning of the video. "Only do that if you want to sell live laugh love shirts to your little heart's desire. really hard to make money. In expensive storefronts, you also buy your investor upfront, and sell it months later, super hard to win."

Secondly, she talks about how opening restaurants can be very risky. "Highest failure rate of any businesses and that's because you have inventory that doesn't stay over time, you also have a labor pool, meaning that the people that you hire in and out frequently and most people don't have loyalty to restaurants, except for those who have existed for a long period."

Lastly, she says how hotel businesses are also prone to failure. "One of the only businesses, where your client expects you to deliver them something and fix problems for them 24/7, in the middle of the night, which is a business, I don't want to run."

The comment section was filled with people who came from different schools of thought. However, most people seem to agree with the fact that restaurant businesses can be tough to run. "I knew restaurants were in the top 3!" writes one user.

Others took to the comment section to talk about the businesses that are great for first-time business owners, "liquor stores never fail," one user wrote, while others wrote, "ATMs, truck fleets, vending machines, laundromats, etc. are all good passive income alternatives she doesn’t mention." Another section of people seemed to disagree with what she had to say about hotel businesses. "I don’t agree with hotels….I believe hotel business is a good one," writes one user while another said, "I would think hotels would be good..just renting a room."

While it may be a good idea to look at the type of businesses that are prone to failing as compared to others, it's also important to remember that having a proper business model can help you make money irrespective of what market you are tending to.

Having said that, certain businesses are no longer a great idea in 2024. Some of these businesses include print media businesses, traditional cable television businesses, and more.

Moreover, experts also recommend taking time to choose which place one should start the business. For example, recently, The Commercial Appeal reported how the state of Tennessee has failed in terms of being a small business friendly. On the other hand, the Raleigh-Cary, North Carolina metro area faired pretty well when it came to supporting new businesses.

For more such videos, you can follow @noahkagan on TikTok.