If you begin them now, it is guaranteed that you will experience a financial loss.
Opportunities exist in the business world for people who are proactive and determined. To begin any business, however, you need to have a few things in place. The most crucial is a concept you already know will be successful in the marketplace.
Many well-known firms got their start by emulating the success of other organizations and websites and then fixing their flaws, such as when Uber ate Doordash and when GymShark partnered with Nike, Adidas, or Puma to create a marketplace for used athletic equipment.
Here are five industries that once held promise but are no longer worthwhile investments so you can make an informed decision about what business to launch in 2023.
Businesses that discourage customers from leaving the house.
In 2020 and 2021, businesses that provided services people could use without leaving their homes were an exceptionally simple way to make money. As a result of the pandemic, many businesses catered to those who opted to stay at home.
Sales of home exercise equipment manufacturer Peloton, for instance, hit an all-time high around these times.
In 2022, however, nearly all such businesses failed because consumers favored more conventional services and locations and saw bicycles as too expensive to justify the convenience they provided.
Since many people still work from home, I don’t think it’s a good idea to sell products or services that encourage people to stay in their houses rather than go out and do something different, such as riding an electric bike to get exercise.
Almost every dropshipping company
At its introduction, dropshipping presented an unparalleled opportunity for any entrepreneur to quickly and easily grow a profitable business into a six-figure operation.
Hundreds of YouTube videos featuring various influencers claimed that this was the greatest business ever and that it helped most individuals become financially independent quickly.
The current issue is that as a result of all those videos and the “everyone can make it” hype, an incredible number of these businesses debuted in 2021 (over 140,000 locations), and 90% of them will fail by 2023.
Since the odds of success are so low (only 1-5% according to CloudWays), prices had to be lowered to make the business viable; yet, your earnings may still be little regardless of which service you choose.
In addition, you need to set out at least $300 for promotion if you don’t already have an established fan base. You’ll need to sell at least $10,000 worth of stuff to make $500, of which more than half will go toward keeping the business afloat at a 5% profit margin.
Aside from the minimal profits you might make, there are other problems associated with that kind of business, such as legal liability difficulties, lack of control over the supply chain, and inadequate product quality.
Airbnb rental
Even though Airbnb’s initial point — allowing people to “rent their empty space to gain some extra money for short-term travelers” — was brilliant, the company has since evolved into something quite different.
People started using the site to provide services similar to hotels, though, with some less strict quality control measures and a higher potential for financial loss, the company’s profitability plummeted as a result.
The article “The Dark Side of Airbnb That Nobody Talks About” details all the reasons why Airbnb is no longer a good business. Before you put your money into it, here is a summary of the most crucial information you need to know.
Since short-term renters are not legally obligated to return damaged or stolen property, you can expect to spend a significant amount of money replacing and cleaning the items they use.
Renters will complain about things that don’t exist, and you’ll be powerless to fix them. For starters, if your Airbnb rating drops below 4.5, your home will no longer be promoted as a desirable option for guests.
The revenue from guests won’t always be enough to cover the rent. The majority of opinion leaders paint a rosy picture of the industry, but merely posting a listing on a website doesn’t quite guarantee a profit.
Most guests have gone back to hotels as a result of poor quality control, which could have an impact on your Airbnb’s location.
There are other issues that could arise, but the real estate market is currently in a bubble, which is driving up property prices to absurd levels. In light of this problem, the value of a property you purchase today may decline in the future.
Any industry that uses crypto money.
Since their introduction in 2008, cryptocurrency prices have seen a wide range of fluctuations. An ATH for Bitcoin occurred between 2020 and the beginning of 2022, which spawned numerous initiatives, businesses, and revenue streams.
There are initiatives planned to create decentralized cloud storage, music streaming, virtual private networks, and other services. The NFT marketplace skyrocketed in popularity, crypto gaming emerged as a way to make money while playing, and the emergence of B2B businesses helped individuals make money trading in them.
At its height, this market was responsible for millions in profits.
Unfortunately, the current economic downturn has killed off a lot of these plans for lack of interest and funding.
Once worth $40, $100, or $500, tokens are now worth less than $10, forcing many exchanges to shut down due to a lack of liquidity.
To be clear, I do not think that any project could be a good business in 2023. However, I do believe that cryptocurrencies are not dead and could become relevant again in the future and that some crypto can be a good investment now that they are at their lows.
Companies and independent designers specializing in graphics and logos
For a long time, it paid off to be in the graphic design or branding business, particularly after the advent of the digital age. But nowadays, you don’t even have to hire anyone to do it, because there are so many AI tools and platforms available.
The rise of do-it-yourself platforms like Canva, Smashing Logo, Snappa, and WordPress has reduced demand for professional designers’ services. And many businesses work with specialized design and marketing firms for their unique products.
In my opinion, the increased demand for UI/UX designers as a result of the growth of software around the world has prompted graphic designers to transition into this field.
They are also integrating in-demand skills like video editing, marketing consulting, social media, and advertising into their portfolios.
Creating designs may still be in demand as a freelance service, but the pay isn’t what it used to be.
Final Remarks
Some companies that seemed promising in the early stages of their development will end up failing by 2023. Because of this, if you’re thinking of starting a business, it’s important to consider not only whether or not it will be successful, but also why it was so successful, to begin with.
Make sure you know how a business operates before listening to someone who promises to make millions with something; most influencers are still promoting some businesses because they are making a profit selling you courses or books.
To reiterate, there is no such thing as quick or simple money; success will only come after plenty of hard work and determination.
