Thread by @benkellyone

I’ve looked at 1,000s of business listings.

As of right now, I own 6 businesses that pay me $725,000 per year (on average).

Here are 6 acquisitions that I wouldn’t touch with a 10-foot pole (bookmark this):

1) Restaurants.

60% of restaurants fail within 1 year.

Depending on your acquisition strategy, this could be a risky play.

After 4 years, 80% fail.

The food industry is a tough one.

2) Clothing & Fashion.

Here's why I'm not a fan of fashion:

- Raising rent
- Decreasing user base
- Order a season in advance

I like industries that are recurring and operate with a moat.

That's not this.

3) Construction.

The construction industry requires a lot of niche knowledge and expertise.

It's also boom or bust which I don't like.

But if you know the industry?

Be my guest.

4) Grocery Stores.

The 2 main downsides of Grocery are the margins and effort.

• There are tons of moving parts
• It requires lots of resources
• You need a lot of space

Also, there isn't much of a moat.

5) Car Dealerships.

The automotive industry comes with:

• Rules
• Standards
• Regulations

That's not to say you can't make good money, just prepare for some headaches.

Not my cup of tea.

Disclaimer:

Every business comes with risk.

These 5 happen to be a bit more difficult, especially for beginners.

Always do your due diligence.