5 Businesses That Are No Longer a Good Idea for 2023

They will guarantee you lose money if you start them now.

The business world is full of opportunities for those willing to take it. However, there are certain things you must have before starting to work on any project. The most important one is a proven idea you know can be profitable.

Many big companies and people started by taking ideas from already established companies and successful online businesses and improving their weaknesses, as is the case of Uber eats with Doordash, GymShark with Nike, Adidas, or Puma, and all the streaming companies that created their platform from the success of Netflix.

However, many businesses are no longer a good idea even if they were good options in the past, and knowing them can help you make better decisions about the company you want to start for 2023; here are five of them.

Any dropshipping business

When dropshipping started, it was the ultimate way to make six figures annually for practically anyone who decided to start a store.

There were hundreds of Youtube videos of multiple influencers saying that this was the best business ever, and most people created their wealth in little time with it.

The problem right now is that thanks to all those videos and the hype of “everybody can make it,” there was an absurd amount of this type of business in 2021 (more than 140,000 stores opened), making 90% of those businesses fail in 2022.

As the chances of success are very low (between 1 to 5% according to CloudWays), people had to lower the prices to make it attractive, but depending on the provider, your earnings will not be that high.

Also, if you don’t have an audience, you must keep at least $300 for advertisement. So if you make 5% of the profit, you will have to sell at least $10,000 worth of products to earn only $500, where more than a half will be to maintain it.

There are other issues you could face with that business apart from the low profit you could make, like legal liability issues, no control over the supply chain, and low quality of products.

Airbnb rental

Even though Airbnb was an excellent concept when it started, they are no longer the “rent your empty space to gain some extra money for short-term travelers” it used to be.

People began to use the platform to offer services as if they were hotels, but with less quality control and risks, making the business no longer so profitable.

In my article “The Dark Side of Airbnb That Nobody Talks About is What Stops Me From Investing in It,” I said all the reasons why it is not a good business anymore. Here are the most important points summarized that you should know before investing in it:

  • Short-term renters can damage and steal your assets, and there will be no consequences for them, so you will be replacing and extra cleaning most of the things you buy for them; this is extra money you will not count when you start this business.
  • Renters will also complain about imaginary things about your property, and you can’t do anything about it. The biggest problem is that if your Airbnb goes below 4.5, your property will not be listed as a good place anymore.
  • The bookings will not always cover your rent. Most influencers glamorize this business, but just listing a property there will not guarantee profit
  • The poor quality control has made most people return to hotels, which could affect the place where you put that Airbnb.

Above all those problems you could have with the business, the real estate market is in a bubble right now that is making properties have ridiculous prices thanks to this business. So if you buy a property, it may go low in price later thanks to this issue.

Any business that involves cryptocurrency.

Cryptocurrencies have gone through many price ups and downs since their creation in 2008. Between 2020 and the beginning of 2022, Bitcoin had an ATH that caused the result in many projects and businesses and new ways to make money.

We see projects to have decentralized clouds, music, VPNs, and more. There was the beginning of crypto gaming to earn money while playing, the creation of a B2B business helped individuals to make business trading their money in it, and the NFT marketplace became so popular that people went crazy.

This market made millions when it was at its peak.

However, we are facing a recession now, and most of those projects are dying due to the lack of hype and capital.

Tokens that were $40, $100, and even $500 per token are now worth less than $10, and many exchanges are closing doors due to a lack of cash flow.

Even though I still believe that cryptocurrencies are not dead and it could become relevant again in the future, and some crypto can be a good investment now that they are at their lows, I don’t think that any project could be a good business for 2023.

Businesses that keep people from leaving home.

From 2020 to 2021, companies that offered services, so people don’t have to leave their homes were practically a free and easy money idea. With the pandemic, people did everything to stay at home, and many companies made this possible.

One example was Peloton company, a sports business that focuses on exercise equipment for home, with all-time sales high during these periods.

However, in 2022 almost all companies that offered these services went bankrupt because people preferred traditional services and spaces over overpriced bicycles.

I consider that anything that helps people to don’t leave their homes right now is not a good business idea because as many people still work from home, they look for things that help them get out of the routine, like going shopping instead of buying things from an app, or go out and exercise instead of staying in the same place and uses an electric bike.

Graphic and brand design business and freelancers

Graphic and brand design businesses, especially when the digital age began, were very profitable for a long time. However, currently, many AI tools and platforms allow you to even do it for free or for a small fee without needing to hire anyone.

Pages like Canva, Smashing logo, Snappa, and WordPress became so popular that people didn’t want to hire creators as before. And many companies have their specific designers and advertisement companies to make them particular projects.

I consider that graphic designers are evolving into UI/UX designers because there is a bigger demand for them thanks to a large amount of software worldwide, so people are migrating into this career to specialize their skills.

They are also combining these skills with others with a higher demand like video editing, marketing consulting, social media, and advertising.

However, even if you can still find freelance offers for design creation, this skill alone is not as profitable as it was years ago.

Final thoughts

Some businesses were good ideas in the past but will no longer be profitable in 2023. For that reason, if you want to start something, I recommend analyzing what made that business popular when it began and what is the chance of success if you start it now.

Most influencers are still promoting some businesses because they are making a profit selling you courses or books, so make sure to understand how a business work before paying attention to someone who promises to make millions with something.

Remember that there is no easy money; everything will take time, effort, and hard work.

Author – Desiree Peralta