Here is a list of risky, worst and less profitable businesses you should not venture into. while we are often a concern with the right businesses to do it is also important to know the type of businesses that will likely not be successful in other to avoid them.
Fixed deposits or certificate of deposit
Now, the first one is this, what they call Fixed Deposits or Certificate of Deposit. Now, in countries in Africa, Asia, and some countries in Europe, they call it Fixed Deposit, I think also in the United Kingdom is also called Fixed Deposit.
And then in the United States, for some reason, they chose to call it Certificate of Deposit. Now, what does that mean? It just means that you take in a sum of money, usually, a large sum of money, a lump sum of money, and then you put it in a bank, you fix it in the bank, so the bank trades with it, and then they offer you an interest rate, or that’s higher than a serious interest rate.
So maybe the service a choice with is going to be anywhere from between 2 to 5% going to be between 2 to 5%. So the fixed deposit rate or the Certificate of Deposit rates will be something like maybe between 5 to 8%, in a country in Africa, and in Asia, in the United States is probably going to be that’s the Certificate of Deposit is going to be somewhere between maybe 2, and maybe three 4%.
In the United States, for instance, the inflation rate is almost 7%. You know, so if you’re getting a certificate of deposit rate of about 5%, which is probably the highest you can get, or maybe even 6%, you’re losing money, your money is disappearing.
If you’re in Africa, if you are in a country in Africa, with the official rate of about 15%, which is what it is on the average in West Africa, and in East Africa, they’re just like us, and then you get in maybe as high as 8% on your Fixed Deposit, guess what, you losing money, because your money is growing slower than the rate of inflation.
So inflation is wiping away whatever value that you think you’re getting. So it’s like taking your money, you know, make a noise, just like an ice cube and you put in an ice deep under the sun, you know, your money is just melting. So it’s a piece that you don’t want to go into, you’re better off investing your money in an s&p 500 index fund*. And I’ve taught you on this channel, how you can do that from any country in the world.
There are no citizenship requirements for you to invest in the US stock market or you can invest you know, in cryptocurrencies, you can invest in agriculture, you can invest in a real as a real estate investment trust, you know, there are a number of these mutual funds to put your money in than a fixed deposit or certificate of deposit.
Newspaper, magazine and print media
Now, the second thing you don’t want to put your money in is into a Newspaper or Print media you know, nice about a printer that is a dying business, it’s a dying business, you know, all of them you know, like I mean if you look at the with the
New York Times, which is probably the number one newspaper in the world, circulation is dropping. Now, Print media like newspapers, are like the second you know, they are no longer printing, firms just want to be published online.
The Print media industry is dead, all papers in circulation are dying. Why? Because we get it from about 2007 You know, Because, you know, you have the Nielsen rating*, states that people stopped getting their news from newspapers as the number one source they start getting their news from, you know, the internet. So newspapers are a dying business.
So don’t put your money into a Print media or newspaper or any form of Print media, you know, you’re losing your money in a dye business, is going to be dead in about 10 to 15 years completely. So don’t put your money there.
Internet cafe
Thirdly is Internet Cafe, you don’t want to put your money in it, you don’t want to put your money in an internet cafe business. You don’t want to do that, you know, that’s like a dinosaur.
You can hardly walk anywhere in a country in the Western world and not just even in the Western world in parts of Africa and many parts of Asia without getting free Wi-Fi. Free Wi-Fi now is available in airports, you know, you can get free Wi-Fi at Kotoka airport in Ghana, you know, at Jomo Kenyatta airport in Kenya etc.
So, I mean, why would anybody want to pay money to go to an internet cafe? No, you fly to London. You’re walking around in London, in Lagos, in Accra, you know, in Bangkok, in Thailand, you know, in, in Mumbai, and that coffee shops have Wi-Fi, hotels have Wi-Fi, even right now banks have Wi-Fi.
So why would anybody want to start an Internet cafe, you know, you’re just not pumping a lot of money, you know, on PCs, you know, on subscriptions too. So you can get, high-speed internet, and at the end of the day, it’s not going to make money. And so don’t do that.
Taxi business
Now, the next business is Taxis, you know, getting a Hackney license, and then going into the taxi business, you know, that is also a dying business. Why? Because we’ve got Uber, you know, we’ve got Bolt, we’ve got Taxify, and, you know, we’ve got 100 other similar apps. They are ride-sharing apps, so businesses are killing them.
This is why in the city of London, San Francisco, in Paris, you see that taxi drivers are protesting. Why? Because they’re protesting because they know that their industry is dying out, you know, it’s cheaper, you know, and more convenient for you to get an Uber, bott a Taxify or any ride up, you go to a country like Ethiopia, they have their own Uber. So why would you want to go and invest in a Hackney license, which the way, is overpriced, and then you start the taxi business?
And, you know, it’s, it’s a dying business. That’s why if you look if you go to places where they still have taxes, you’re going to see that the people who are doing that are elderly, people who can no longer adjust, so they’re just gonna stay into that business until the business crashes. So you don’t want to do that.
Rumours and gossip blogging
Now, the next business, the fifth one that you don’t want to go into is Blogging. Blogging, no, because now you’ve got microblogging sites, you’ve got twitter you’ve got, you know, Instagram, and then you’ve got Facebook and Facebook, they’ve done a lot of changes to make it make blogging within your site, you know, so attractive. So a lot of people are not even going into blogs anymore, you know, if I might apply to people who are still even in the blogging business, they blog and they come on Instagram, Facebook, Twitter, Snapchat and QQ to try to promote their blog post.
So it’s a dying business is a shrinking business, it’s not something that you want to go into blogging, you know, what you want to go into, you want to go into, you know, new and emerging businesses, like adorn my channel, you know, like, literally probably, like close to 100, now that you can do that are still alive. So you don’t want to do that.
Shares
Now, the sixth thing that you don’t want to do is this, you don’t want to invest in any share that over the last 10 years has indexed less than the inflation rate. So you get the index rate and make the comparison. If you go to S& G Global you can see how stocks performed. And there are several other sites that you can go to, and see how stocks perform.
Now, you take the inflation rate, as it stands in your country, the inflation rate is something like maybe 8%, 10%, 15%, if you have a stock that year, on year, you know, year on year, but last 10 years is yielding less at than that inflation rate, and then you’re going to put your money there then you are losing money, you know, so you don’t want to do that for any investment to be worthwhile, it must yield at least above the inflation rate.
Altcoins
Now, what’s the seventh and final now, don’t invest in altcoins. These are cryptocurrencies other than the major ones such as Bitcoin. That’s what cryptocurrency altcoins are. There are about 1700 cryptocurrencies, the vast majority of them are so poor, if you want to invest in cryptocurrency you have to remember cryptocurrency is very volatile, risky and dynamic.
So you want to go in there, be led knowledge not being led greed. So it’s very, very volatile. So you want to limit yourself to Bitcoin, bitcoin cash, ethereal, litecoin, and maybe Shiba. First of all, they are not very, very, they’re very, very affordable. So you put your money in and then they disappear. You limit yourself to these mentioned here.
