Robert Herjavec, a well-known business mogul and investor from Croatia, has shared his insights on the top three business types he would never get involved in. These industries, according to Herjavec, are not worth the time and effort due to various challenges they pose.
The first industry on Herjavec’s no-go list is the restaurant business. He highlights the high failure rate of restaurants, with many shutting down within their first year of operation. Apart from the financial risks involved, restaurants also demand a significant time commitment from owners, leaving little room for flexibility or growth. Codie Sanchez, another successful entrepreneur, shares similar views, stating that the restaurant industry is often a losing proposition due to the amount of time and money it consumes.
Retail fashion is another industry that Herjavec advises against entering. The fashion business requires substantial upfront investments in inventory, with no guarantee of immediate returns. Managing trends, sizes, returns, and unsold inventory adds to the complexity and risk involved in this industry. Despite advancements in AI technology, predicting future trends remains a challenge for retail fashion businesses, making it a risky venture for many entrepreneurs.
Personal services, such as hairstyling and dog walking, are also on Herjavec’s list of industries to avoid. These businesses heavily rely on the individual providing the service, making scalability and potential for growth limited. While personal service businesses can provide a steady income, they are often difficult to franchise and sell due to their dependence on the owner. Herjavec emphasizes the difference between lifestyle businesses and scalable ventures, urging entrepreneurs to choose industries that offer long-term potential and scalability.
In conclusion, Robert Herjavec’s advice serves as a valuable lesson for aspiring entrepreneurs. By understanding the challenges and risks associated with certain industries, individuals can make informed decisions about their entrepreneurial ventures. Choosing the right path, whether it be in tech ventures or other high-growth industries, can make a significant difference in the success and scalability of a business. Ultimately, it is essential to consider all factors and seek advice from experienced professionals like Herjavec before diving into a new business venture.
