Here are five business that you should never do even if they paid you, please don’t do them. With this business, you might make money initially, but they definitely crash along the line. In view of this instead of having financial freedom, you are pushed to poverty and indebted.

These businesses don’t always give you the access to control your capital and that is why you come crashing the moment something goes wrong.

Businesses That You Should Never Do

1. Businesses that put control of your capital in the hands of clients

Never you do the type of businesses that put your capital into the hands of your clients. Putting the capital in the hands of your client is putting your capital at risk. Every business should only risk your profit and not the other way round. So, any business that does that is no business to go into.

Now you will see why real estate business is considered the best business to go into. This is business it does not entrust the capital in the hands of the clients. For instance, if you rent out your properties to people and they end up not paying, you kick them out and still keep your property. Here you only loose profit and not the capital.

Business like loan businesses should be avoid at all costs. When you give out loans to people, they might end up not paying your interest and even your capital.

2. Business That Services are rendered before payment

Businesses where people pay before they receive the services will always be ahead of ones where people receive the services before paying. Businesses that services are rendered before payment is made are Businesses That You Should Never Do.

3. Business that would push you into debt to boast them

Always avoid business that you would need to go into debt to boast them. Even if you have to always be outside of debt and not inside of debt. Being outside of dept is borrowing the amount less that what you already have. For example, you have $1000, and you went and borrowed $500 then you are outside of debt. By so doing, even if you have a problem, you can always find yourself out of it by clearing your debt.

Are you a businessman or an individual wallowing in debt? check out how to skyrocket your debt payoff.

4. Only do business that respond to a demand

Never you do business that create a demand as a small business rather do those businesses that respond to a demand (something that people want already). Only offer solutions to the already existing demands of the people and not create them. Your business should only be what people need already.

5. Avoid Negative cash flow business

Only do business that have a lot of cash flow and never be deceived that a business is making profit. This is because not business making profit have a good cash flow. Always go businesses that are cash flow friendly.

Now, let’s look at this scenario. Antswam Francis runs a trendy boutique in Naka (Benue State in Nigeria) that’s turning a profit every month. However, his customers often buy on credit, and he doesn’t receive payments for weeks. Meanwhile, his rent and supplier bills are due immediately. Despite being profitable, Francis struggles to pay his bills on time because his cash flow is weak.

This highlights the importance of choosing businesses with strong, steady cash flow to avoid financial stress.

Business That Allows You Control Your Capital

Based on the principles shared above, here are some businesses that are more likely to ensure strong, steady cash flow and give you control over your capital:

1. Real Estate Investment

Real estate is a perfect example of business areas where your capital is not in jeopardy. Suppose you rent out the properties; if tenants don’t pay, it is still yours. Real estate, if managed appropriately, could be a very stable, long-term source of income due to both capital appreciation and rental cash flow.

2. Subscription-based Services

Subscription-based models involve the sale of digitized products, courses, and memberships that can help create a predictable and regular stream of cash. The customer pre- pays for a month, quarter, or yearly, which can even out fluctuations in cash flow and make it less likely for shortages to occur. Am into tech and when I have a course to offer, people pay before the course content has been released to them.

3. Consulting or Freelance Services (Pay Before Service)

If you have expertise in a specific field (marketing, finance, technology, etc.), providing consulting services where clients pay upfront for the services can be highly profitable. This model ensures you get paid before offering any service, which eliminates the risk of running into cash flow issues or delayed payments.

4. Self-Storage Business

Self-storage units are a very low-maintenance business and can be great for cash flow. Typically, customers pay upfront for the month or year of a rental fee, meaning steady income with little to no threat of delayed payments.

5. E-Commerce and Online Retail (With Pre-payment)

E-commerce businesses where customers pay upfront for products before they are shipped or delivered are a great option. This ensures cash flow is generated before services or products are provided, reducing the risk of delayed payments or bad debts. Platforms like Shopify and Amazon are examples where businesses can maintain good control over their capital.

These businesses offer a combination of steady income, control over your capital, and reduced risk of debt accumulation, ensuring long-term financial success.

Before going into any business, always ask yourself these questions, Will this business ensure that my capital is still around in the next 10 years? If yes, then go into the business but if not then don’t.

Conclusion

In conclusion, when venturing into any business, it’s essential to choose wisely. The Businesses That You Should Never Do often appears lucrative at first but carries hidden risks that can lead to financial disaster. Always prioritize businesses where you retain control over your capital, avoid services rendered before payment, steer clear of debt-dependent ventures, and opt for businesses that respond to existing demands and maintain strong cash flow.

Before making any decisions, ask yourself: Will this business ensure that my capital remains secure for the long term? If the answer is yes, then go ahead and do it. However, if there are doubts, just walk away.

Now, I would like to hear from you on this topic. You can share your experiences or any questions that you may have regarding decisions about business. Let’s continue the conversation and help each other create smarter, more profitable choices in business.