1. A “deal a day” website. Merchants have become familiar with the margin trick and are no longer willing to give up over 50% of profits to gain customers who won't return for future offers. Discounting is a great way to earn business, but it shouldn't be the only way. Get creative with your promotions and stick to social media to offer contests and deals. Don't start a daily deals website.
2. A book store. Book stores are not making money anymore. Everyone is on eBook or buying hard books through Amazon.com. Local book stores, although charming, are not making money. The markups can be beat by using online options. It is like opening up a CD store right now, it just doesn't make sense.
3. A frozen yogurt shop or specialty cupcake store. The food industry is tough enough. Buying in on a trend, especially a fading one, is going to suck up your money and do so quickly. There are frozen yogurt and cupcake stores almost on every corner these days. Don't invest your money here.
My best business pick this year is personal transportation. Right now Uber is leading the way. But, it hasn't caught on via the west coast. So, if you want to run with a business that I see growing, and rapidly, think about personal transportation.
Until next time,