It doesn’t take much for what once seemed a good idea to turn into a bad business. Turning a blind eye on current and predicted market trends can cost you a failed business and bankruptcy. To prevent that from happening in 2023, we’re taking a look at the worst business ideas right now.
It’s not that they’re really bad business ideas per se. It’s more about how the socio-economic situation is unsustainable to move on with their realisation. However, in 2023 it’s wiser if you stay away from these bad business ideas.
10 worst business ideas to bring to realisation in 2023
The past 3 years were disappointing enough so there’s no need to enter in a bad business in 2023. Therefore, watch out for these bad business ideas. If you’re so passionate about pursuing them, please wait until the air clears out a little (literally) and uncertainty drops. Moreover, it’s within the retail industry, make sure you’re aware of the upcoming trends in retail.
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
Nightclubs
The worst business idea for 2023 (and the one I’d most strongly caution my clients away from) would be anything resembling a traditional nightclub model. People have been social distancing and quarantining across the world for the entirety of 2020 and most of 2021. This type of extended behavior will certainly make people much warier of the risks involved with crowded spaces – especially in an environment pressed full of hundreds of maskless, intoxicated patrons.
Janeesa Hollingshead, Co-Founder of JJ Studio
Travel-related business
As an entrepreneur, I can say that one of the worst business ideas for 2023 is starting a tourism and hospitality company. With this situation and the new normal set up, a lot of changes have been implemented especially when it comes to personal interaction.
Chris Muktar, Founder of WikiJob.co.uk
Salon
An economic downturn is somewhat the best time to start a business because of less competition. And as a business owner myself, I believe there are opportunities in every crisis but this time, it looks so different because we do not know when this crisis will end. And for this reason, I would say that not all of the business start-ups will have a place for 2023.
And one bad startup idea is the salon business.
Though it is a steady and profitable business, due to the need for physical contact in performing their service, it is impossible for people to visit as they are still afraid of the spread of the virus.
Jace Beeny, CEO at JaceBeeny.com
Parking apps
As for me, the worst business idea for 2023 is launching mobile applications for parking space. No one would have a problem with parking spaces because most people won’t even be out of their house. Thus, parking spaces wouldn’t be packed up and there is no use for parking applications not until COVID-19 is long behind us.
Scot J Chrisman, Consultant at NWT3K
Dog walking services
I recently came across a start-up idea of launching an application for dog walking services in America. However having in mind that we are still in the unknown with Covid, I’m not sure that would be a smart route.
The major reason why this is one of the worst business ideas right now is the fact that people are preferring to stay at home now more than ever before. Even the companies and businesses have been shifted to remote work. This has made people less social than they were a year ago. So, to fill this gap, a pet is the only savior to go out for a walk. This is the time when people need walks with their pets the most, so a start-up providing these services will likely doom in the near future.
Christos Kritikos, Founder and Startup Coach at Emerging Humanity
eStores for other brands
In 2022 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
Events business
I would suggest that any kind of events business is a bad business idea and setting itself up for disaster by launching while COVID-19 is still around. It’s an industry that demands certainty at every stage of the process. Attendees need to be able to make travel plans, venues need to lock in dates well in advance, cancellation insurance is currently impossible to obtain, and your essential suppliers may not even be in business by the time the event date comes around.
The industry overall has taken one of the biggest hits from the pandemic, and it will take a long time for the turbulence to end. Until that time it will be extremely difficult – if not impossible – to plan ahead with confidence.
John Bedford, Founder of Viva Flavor
Coffee Shop
I envision that one of the worst business ideas for 2022 is a coffee shop. Despite having many caffeine lovers, it would be challenging to run a business if most people may have to continue with work/study from home set up. We know that the largest percentage of consumers are employees and students. But with some restrictions, they may have to make their coffee at home. Besides, given the situation now, they may see it as a way to save at least $15 to $30 per week.
Ajmal Dar, Founder of Moccasin Guru
Conclusion
As much as we’re tired of talking about and analysing the Covid-19 madness, it’s reality. And this reality has shaped the business landscape for the near future, so we better be careful and stay clear from bad business ideas.
More must-read stories from Enterprise League:
- Entrepreneurs share fun and creative Christmas celebration ideas for the entire team.
- Learn why you should support local businesses and how shopping local is the new cool.
- What do successful people sacrifice in order to achieve their dreams.
- Five ways you can expand and improve your business knowledge.
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