Codie SanchezFounder @ Contrarian Thinking

Three Worst Businesses You Could Ever Buy #shorts

11 May 2023 · 1 min

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Short YouTube #shorts by Codie Sanchez (uploaded May 11, 2023) listing three types of businesses she advises against buying: restaurants, hotels, and retail storefronts. Provides supporting statistics (average sale prices, high failure rates) and operational reasons (costs, 24/7 service, inventory/timing/rent issues). The piece is opinionated, concise, and aimed at potential buyers evaluating small-business investments.

Questions this video answers

May 11, 2023

Around $800,000

$198,000

60% fail in the first year; 80% fail after four years

Codie Sanchez

Chapters

Three businesses I would never buy. Number one Restaurants. They ain't for making money. The numbers don't lie. The average small business in the US sells for around 800k, the average restaurant 198k. Because 60% fail in the first year, 80% after four. No wonder banks don't loan to restaurants. Number two hotels. Hotels are not businesses. They're real estate with a lot of parts masquerading as a business. Cash flow ain't enough to cover the real estate transaction. Think about these things. They're expensive to run, and they're the only place where your customers require your help 24 7. Then we've got retail storefronts. Those businesses are awesome at one thing making money. High rent, decreasing user base. You buy a season ahead of time and have to sell afterwards and collect later. It's not a great business.