Ten Riskiest Businesses to Start

Forbes has dared to go where no man has gone before - publishing a slide show of the 10 riskiest businesses to start.

If I were a business person looking to start up in these sectors, I'd be looking to reduce risks by investing in a well-run franchise system to bring competitive advantages in lowering costs, marketing the brand and innovation. Even then there is no guarantee because it is some of the riskiest of businesses. And those 10 riskiest businesses for entrepreneurs are?

• Transportation - suffer during oil spikes and have tons of competition
• Apparel Stores - inventory risk, market volatility and differentiating yourself among the retail giants are but some of the challenges
• Restaurants and Bars - staff walkouts, undercapitalization, and paying vendors cash on delivery contribute to make restaurants one tough omelette to cook
• Communications - low margins plus high risk makes this a tough business for independent mobile phone dealerships
• Travel Agencies and Tour Operators - Do-It-Yourself online travel firms like Expedia and Priceline.com are really crashing business for travel agencies and operators
• Food Stores - Anyone notice how many local supermarkets are being consolidated? Lots.
• Personal Services - The ultimate commodity business in search of a price and location edge - e.g. laundrymats, dry cleaners, barber shops, shoe-repair shops
• Auto Repair - Razor-thin margins because insurance companies who typically pay the bills know how to bargain
• Trucking - A commodity business with low net margins that are subject to oil price spikes
• Money Services Businesses - Increasing regulation and bouncing checks make this risky

Thanks to Blue MauMau member Eugene Driga for the tip on this story