YouTube video (Codie Sanchez) listing three types of small businesses the speaker advises against buying: combo businesses (e.g., coffee shop + restaurant + convenience store) due to high combined costs and low profit; dry cleaners because of contamination/remediation and toxic real estate; and construction companies because of project-specific complexity, labor importance, liability, and scale requirements (prefers >$100M scale).
What are three businesses I would never buy. I would never do a combo business which is like coffee shop, restaurants, convenience store. Why? Because they tried to turn a small business into a VC style business and they had way too many costs and not enough profit when they meshed them all together. Second business I would never buy dry cleaners. Dry cleaning businesses are extremely dirty. They use this one word called remediation, which basically means that a lot of times the real estate has actually become toxic because of what they use on the materials. Also construction companies, the reason why they're really complicated. You have to have a custom project for every project that you do. Labor is really important. You have a lot of liability for construction. As a small business, that's just a tough road to hoe. So unless I was going to be a top tier performer doing $100 million plus, I'd probably stay out of the construction industry.
