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If you know that you want to run your own business but you haven’t yet settled on a niche for that business, it’s worth understanding which industries are tougher than others for startups to break into. Today, we’re going to talk about some of the specific industries that are known for being very tough to break into for new businesses. That’s not to say you shouldn’t start a business in any of these niches, but understand the challenges you’ll face ahead of time is advised. Find out more below.
The Restaurant and Hospitality Industry
There’s a lot that needs to be bought and paid for, as well as a lot that needs to go right for a restaurant to succeed. It needs to be marketed successfully, the atmosphere needs to be just right, the front of house staff need to be on their game every night, the kitchen needs to be efficient while also pumping out great food. And the challenges in the hospitality industry in general are very similar.
Selling products from a retail store is tough. There a lot of competition and floor space often comes at premium when you’re renting your location. On top of that, one bad season in terms of sales can have a huge impact on the health of your business going forward. It also leads to stock issues and lots of other problems that need to be worked around.
The Beverage Industry
One of the challenges that comes with trying to break into the Beverage industry is the abundance of competition. Occasionally a new demand arises and new companies can exploit that demand. Nevertheless, with so many huge companies eating up such a large portion of the market share, breaking through as a startup in this niche is something that’s always tough and probably always will be.
The Transportation Industry
There’s a wide range of problems that come with trying to compete in the transport sector. First of all, the barrier to entry is very high and the opportunities are limited. Contractors operated public transport lines usually have long contracts in place and competition is fierce. Licenses can also be expensive and insurance premiums tend to be very high as well. Not to mention the damage caused by things like oil price spikes.
The Travel Industry
If you’re looking to get a startup off the ground in the travel industry, you’ll be likely to face a range of challenges. First of all, the trends are against such businesses because the DIY approach to travel is more popular than it’s ever been, and traditional travel operators are losing out as a result. Right now, there’s also the impact of the global Covid-19 pandemic to factor in too.
Making a success of your startup is never going to be easy or straightforward, no matter which industry you choose to enter. But the industries above will present you with some particular and unique challenges. Nevertheless, if you’re passionate about these niches and you want to be challenged, go ahead and make it happen.