Nick PerryFounder and CEO of 7 Figure Cartel

Top 3 DUMBEST Businesses to Start in 2025 🚫 (Avoid These Traps)

5 Oct 2025 · 1 min

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A short commentary by Nick Perry warning entrepreneurs which small businesses he would avoid when trying to become a multimillionaire. He lists the top three to avoid: (1) restaurants — high failure rate, long onsite hours, high cash burn, low margins; (2) retail fashion — inventory risk, delayed sales cycles, returns and SKU/size complexity; (3) personal services (e.g., hair styling, dog walking) — highly person-dependent, hard to scale and hard to sell, though often good lifestyle businesses.

Chapters

Here are the top three businesses I would never start if I wanted to become a multi millionaire all over again. Number one is a restaurant. Their failure rate is huge, but they also require you to be on site an insane amount of hours. On top of that, they suck up massive amounts of cash and spit out low margins. Number two, retail fashion. Because you buy inventory today hoping you made the right decision and it sells in eight months. Not to mention the returns. Skus sizes, all of that stuff. Number three, personal services business like hair styling or dog walking. You're basically selling yourself. Hard to scale that. These are great lifestyle businesses though. They can generate a lot of income. Just impossible to sell.