11 of the worst business ideas to steer clear from in 2025

11 bad business ideas to stay away from

Now that we got that out of the way, let’s take a look at the worst business ideas to avoid in 2025.

Non-proprietary SaaS

SaaS is one of the worst business ideas because it’s already over-saturated with such a low barrier of entry that anyone can build and deploy sub-par technology. With inflation tightening up everyone’s purse strings, with exceptions, of course, I believe that only new, unique, and proprietary technology will stand a chance.

Kirk Morales, Co-Founder of Persosa

eStores for other brands

I’d say the worst possible business you could start is an eCommerce business selling other brands’ products. 

Firstly, with eCommerce set to grow 129% this year according to Forbes, price competition for commoditized products will get tougher driving down margins to virtually nothing. 

Secondly, more and more brands are moving towards D2C selling and bypassing retailers completely. Nike this year announced that they would not only boycott Amazon but would stop supplying retailers within 2 years, a trend likely to be followed by other leading D2C brands. 

Finally, you won’t be able to compete with the big players with deep pockets that can afford to lose money on acquiring customers on the first sale and making it back on subsequent purchases meaning you won’t be able to compete on price.

Wesley Parker, Co-founder at Homesage

Pyramid Schemes

There are only a limited number of people in a certain community so eventually, they collapse. Plus, the only people who make a decent income are those at the top of the pyramid, leaving those at the bottom with scraps. 

The worst part, they’re often related to investment fraud and have already been banned in several countries.

Letitia James, The New York State Attorney General

Perishable food mail subscription

Abby Jenkins, Product Marketing Manager at Oracle NetSuite

ATM routes

Codie Sanchez, Founder of Contrarian Thinking and Private Equity Investor

Retail stores

Nearly 3200 US retail stores closed in 2023 alone – huge retailers like CVS, Bed, Bath & Beyond, Walgreens and many more. So imagine what could happen for small mom-and-pop stores. 

Rupal Agarwal, Co-Founder and CSO at Your Retail Coach

Pay-to-play social media platforms

Shirin Ghaffary, Senior Correspondent at Vox

Single-product subscription boxes

From a business perspective, managing shipping and logistics is complicated and expensive, and growth or scaling is extremely limited. There’s not much you can grow with only one product. 

From a consumer perspective, they’re already bombarded by subscription services left and right. They are also used to a set standard so they have high expectations. And retention could be difficult. Receiving the same product over and over every month could get quite boring. 

Silent music concerts

There are three key reasons why silent music concerts are a bad business idea: competition with traditional concerts, limited audience appeal, and audience interaction. There are very few people who would choose a silent music concert over a traditional one. It’s not restricting and it’s highly social. Plus, the costs for these concerts are huge and the return is very small compared to traditional concerts.

Internet cafe

Internet cafes have fallen out of favor as a business model due to a combination of factors that make them increasingly unprofitable and obsolete. The widespread availability of home internet connections and mobile data has drastically reduced the need for public internet access points. This declining demand, coupled with low-profit margins on internet services, makes it difficult for these businesses to generate sufficient revenue.

High overhead costs for rent, utilities, and equipment further erode profitability. The rapid pace of technological change necessitates frequent and expensive upgrades, while competition from establishments offering free Wi-Fi, such as libraries and coffee shops, draws away potential customers. Additionally, the business model suffers from limited repeat patronage, security challenges associated with public computer use, and potential regulatory hurdles in some jurisdictions.

4 signs that your business idea is bad

Maybe we have missed that particular idea that has popped in your mind , so you are still not sure whether it is a horrible business idea? Lets have a look at some common factors that can help you decide whether your on business idea is a bad one:

1. You’re not excited or passionate about it – consumers can sense this from a mile away. If you’re not excited about your business idea, why would anyone else be? Remember, this would become your everyday life and working on something that doesn’t excite you never ends well.
2. You’re not making any sales – this is the most obvious one. At the end of the day, the success of a business is measured by dollars. Make sure to test the idea and gather feedback before officially launching it. But if no one’s buying what you’re selling, shut it down.
3. Experienced entrepreneurs tell you it’s a bad idea or aren’t willing to help – feedback from experts is crucial when starting out. They’ve already done it and succeeded. While advice should be taken with a grain of salt, it’s important to listen to feedback.
4. Too small or non-existent market need – if this is the case, don’t even try to force your business idea. If your niche and target market are too small, you’ll eventually hit a ceiling and growth will stop fast. If there’s no market need, no one is going to buy it. Just move on to a better idea.

Conclusion

There you have it. We’re sorry if we broke some hearts and dreams but we hope we’ve armed you with information you find useful – as detailed market research is a key before even thinking about starting any business. These are definitely some of the worst business ideas, so make sure to stay away from these and avoid a catastrophe.