10 Worst Businesses to Start in 2013

A staggering 500,000 businesses are set up in the U.S every year. According to reports however, a phenomenal 90% of new enterprises fail – whether through poor management, leadership or execution.

Starting a business is all well and good, but without resources, knowledge, determination, and a hell of a good business idea, you will likely end up on the ‘businesses that failed’ list of 2013.

So how do you know if your business will do well or not? You’re probably thinking if it was predictable, then no business would ever fail, unfortunately no business venture is guaranteed to succeed just like the above named business ventures are not guaranteed to fail. Nevertheless, the 10 business iseas we have listed for you are the most difficult to make a success from in today's marketplace.  So, if your idea falls under one of the categories we list, it's probably better to try out a new business idea!


1. #1 Distribution Business

The increased ease of access to manufacturers and the growing dislike of the ‘middle-man’ has meant that distribution businesses are slowly but surely declining, fast.

2. #2 Ice-cream Shop

This is a saturated market, and one that you should steer clear from. Let’s face it, ice-cream and frozen yoghurt (no matter how healthy) is only going to be successful in places that have high temperatures, and where there are enough people to create ‘a market’ for it.

3. #3 Restaurant

A worrying 80% of restaurants fail within their first 5 years in New York. This is enough to put anyone off! But for what reason? Well, the number of permits, health and safety regulations, overheads and employee turnover all contribute to a difficult business to succeed in. Another thing to consider is that bad reviews stick – so if your food isn’t ‘amazing’ then expect to be shut down.

4. #4 Bookshop

With the growing trend of online books (eBooks), the use for paperback books is slowly becoming obsolete. This means that bookshops are fast becoming redundant. Most people today want to store their books on their tablet device, and this can’t be done by purchasing a book from a bookshop. You need to stay one-step ahead of the game, and a bookshop business will not enable you to do that.

5. #5 Internet Café

The internet is no longer something that people hope to have access to, or believe they need to pay for. Wifi has become the norm in public places, restaurants, and bars, and so internet cafes have become a thing of the past. It will soon be the case that wifi is available almost everywhere you go, so there will be no use for internet cafes.

6. #6 Pay Phone Booth Company

Mobile phones are not a luxury, they are a necessity. In fact, having a mobile phone is more important these days than having any other commodity. Pay phone booths are fast dying out, and with mobile phones available for sale for as little as $10, there is no need for anyone ever to use a pay phone booth.

7. #7 Video Rental Shop

In a similar way to book shops, video rental stores are becoming less used by the public due to the availability of eFilms. This means that films are readily available to purchase, rent or even illegally download from the internet – resulting in the decline of video rental retailers.

8. #8 Retailer (shoes and clothing)

We need to face facts – the internet has taken over the traditional retail business. Without clothing stores selling their goods through their own websites, and the ability to shop from the comfort of your own home, the need for brick and mortar stores is becoming extinct.

9. #9 Travel Agency

The problem with travel agencies is that the information and holiday deals are readily available online. Not only this, but many websites also provide comparison information to give customers a complete overview of the best prices available to them. Many airlines also offer discounts for booking online, so it therefore begs the question why travel agents are even around! Steer clear of any business venture that can be conducted over the internet folks.

10. #10 Gift Shop

In a struggling economy, fewer and fewer people are buying gifts for one another. So unless you are only hoping to make money around the holiday periods, then a gift shop business will not make a profit all year round. In addition, for those who do want to buy gifts, many use the internet to do so.

Let us know your thoughts in the comments below!