The Most Difficult Business to Start, Ranked

Voting rules: Choose the business you think is the most difficult!

Updated on Apr 30, 2024 06:23

Starting a business is a major undertaking, fraught with countless challenges and obstacles. Certain industries present even higher barriers to entry, laden with complex regulations, high initial costs, and fierce competition. Understanding which sectors are the most daunting can help aspiring entrepreneurs prepare better and set realistic expectations. By participating in this live ranking, users contribute their insights and experiences, shedding light on the intricacies of various industries. This collective intelligence not only aids potential business owners in making informed decisions but also creates a dynamic resource that adjusts as new information and trends emerge.

What Is the Most Difficult Business to Start?

1

58
votes
Biotechnology company

Starting a biotech company requires extensive scientific knowledge, specialized equipment, and significant financial resources for research and development.
A biotechnology company is a business that operates in the field of biotechnology, which involves the use of living organisms or their components to develop products or processes that benefit various industries, including healthcare, agriculture, and environmental sciences. Biotechnology companies often focus on research, development, and commercialization of biotechnological applications such as drug discovery, genetic engineering, and molecular diagnostics.

Technological Expertise: High level of technical knowledge and expertise in biological sciences, genetics, and molecular biology.

Research and Development: Extensive investment in research and development activities to discover and develop innovative biotechnological solutions.

Regulatory Compliance: Adherence to strict regulations and compliance requirements, particularly in the areas of drug development, clinical trials, and intellectual property rights.

Capital Intensive: Significant financial resources required for laboratory equipment, facilities, human resources, and research activities.

Patent Protection: Emphasis on securing patents for novel discoveries and inventions to protect intellectual property rights and enable commercialization.
2

36
votes
Bruno Sanchez-Andrade Nuño from Washington, DC, USA · CC BY 2.0

Space exploration company

Elon Musk

Starting a space exploration company requires expertise in aerospace engineering, access to launch facilities, and heavy investment in technology and research.
A space exploration company is a business venture focused on advancing and commercializing space exploration technologies and capabilities. It involves the design, development, and operation of spacecraft and technology to explore outer space for scientific research, satellite deployment, tourism, and potential colonization.

Company Name: SpaceX

Primary Headquarters: Hawthorne, California

Year Founded: 2002

Rocket Launch Capability: Falcon 9 - capable of launching commercial satellites and cargo resupply missions to the International Space Station

Starship: A fully reusable spacecraft designed for long-duration space travel, crewed missions to Mars, and potential lunar missions
3

24
votes
IAEA Imagebank · CC BY-SA 2.0

Nuclear power plant

Building and operating a nuclear power plant requires extensive knowledge of nuclear physics, safety regulations, and significant capital investment.
A nuclear power plant is a complex and highly regulated infrastructure that generates electricity through nuclear reactions. It involves the use of nuclear fuel, such as uranium or plutonium, to produce heat via nuclear fission or fusion. This heat is then utilized to generate steam, which drives turbines connected to electrical generators, producing electricity.

Power Output: Nuclear power plants can generate electrical power ranging from a few hundred megawatts (MW) to over 1,000 MW, depending on the size and design.

Safety Features: Nuclear power plants incorporate multiple safety systems, including redundant cooling mechanisms, containment buildings, and emergency shutdown procedures to ensure safe operation.

Fuel Type: Nuclear power plants primarily use uranium-235 as fuel, enriched to varying levels. Some advanced designs aim to utilize thorium or plutonium as alternative fuels.

Waste Management: One critical challenge of nuclear power plants is the management of radioactive waste. Specialized facilities are required to store and handle nuclear waste securely.

Regulation: Nuclear power plants are subject to stringent regulatory frameworks to ensure safety, non-proliferation of nuclear materials, and proper waste management.
4

15
votes
妖精書士 · CC0

Pharmaceutical company

Starting a pharmaceutical company requires extensive research and development, regulatory approvals, and significant financial investment.
A pharmaceutical company is a business that develops, produces, and markets pharmaceutical drugs for medical use. It involves extensive research and development, stringent regulatory compliance, and complex manufacturing processes. Pharmaceutical companies play a crucial role in improving public health by discovering and manufacturing effective drugs.

Research and Development: Pharmaceutical companies invest substantial resources in research and development to discover and develop new drugs or improve existing medications.

Regulatory Compliance: Pharmaceutical companies must adhere to strict regulations and guidelines imposed by regulatory authorities to ensure the safety, efficacy, and quality of their drugs.

Clinical Trials: Conducting extensive clinical trials is an essential part of the pharmaceutical industry to test the safety and effectiveness of drugs before they are approved for commercial use.

Intellectual Property: Pharmaceutical companies heavily rely on patents and intellectual property rights to protect their investments in research and development, giving them exclusive rights to manufacture and sell specific medications.

Manufacturing Infrastructure: Establishing and maintaining sophisticated manufacturing facilities, compliant with Good Manufacturing Practices (GMP), is crucial for pharmaceutical companies to ensure consistent production of high-quality drugs.
5

16
votes
Commercial airline

Starting a commercial airline requires significant investment in planes, personnel, and airport infrastructure, as well as navigating complex regulations and safety standards.
A commercial airline is a complex business that involves the operation of aircraft to provide air transportation services to passengers and cargo on a commercial basis. It requires significant financial investment, regulatory compliance, careful planning, and efficient operations to be successful. The airline industry is highly competitive, and starting a commercial airline can be a challenging venture.

Aircraft Fleet: Requires acquiring and maintaining a fleet of aircraft suitable for passenger and cargo transportation.

Regulatory Compliance: Adherence to aviation regulations and obtaining necessary licenses and permits.

Safety and Security: Implementation of robust safety measures and security protocols.

Infrastructure: Establishment of operational facilities, such as hangars, maintenance facilities, and passenger terminals.

Route Network: Developing routes and establishing agreements with airports for takeoff and landing slots.
6

5
votes
Oil and gas exploration company

Starting an oil and gas exploration company requires significant investment in technology and exploration, as well as navigating complex regulations and environmental concerns.
An oil and gas exploration company is a business that focuses on the exploration, production, and extraction of oil and natural gas reserves. These companies invest in technology, resources, and expertise to identify and extract these valuable energy resources from the earth. The exploration process involves locating potential oil and gas fields, conducting geological surveys, and drilling exploratory wells to assess the reserves' commercial viability. Once a viable reserve is discovered, the company develops production facilities and implements extraction methods to bring the oil and gas to the market.

Initial Capital: Significant financial capital is required to start an oil and gas exploration company. Initial investments often range from millions to billions depending on the size and complexity of operations.

Technical Expertise: The company requires a team of skilled professionals, including geologists, geophysicists, reservoir engineers, drilling engineers, and production experts to successfully explore, drill, and extract oil and gas reserves.

Exploration Equipment: Investing in advanced exploration equipment such as seismic imaging technology, drilling rigs, and well testing tools is necessary to efficiently and accurately locate and evaluate potential reserves.

Regulatory Compliance: Oil and gas exploration companies must adhere to various regulatory frameworks and obtain necessary permits and licenses at local, national, and international levels. Compliance with environmental and safety regulations is crucial.

Market Volatility: The oil and gas industry is highly influenced by global market trends, geopolitical factors, and changes in energy policies. Companies operating in this sector must navigate price fluctuations, supply-demand dynamics, and geopolitical risks.
7

10
votes
Electric vehicle manufacturer

Nikola Motors

Starting an electric vehicle manufacturing company requires significant investment in research and development, as well as navigating complex regulations and supply chain management.
An electric vehicle manufacturer is a business that specializes in designing, developing, and producing electric vehicles (EVs). These vehicles are powered by electric motors and use rechargeable batteries as their primary source of energy, unlike traditional vehicles that rely on gasoline or diesel fuel. Electric vehicle manufacturers aim to offer more sustainable and environmentally friendly transportation options by reducing carbon emissions and dependence on fossil fuels.

Range: Typically between 200-400 miles per charge

Charging Time: Varies depending on the charging method; can range from a few hours to several hours for a full charge

Battery Capacity: Usually between 40 kWh to 100 kWh, depending on the vehicle model

Acceleration: Electric vehicles can provide instant torque, allowing for quick acceleration

Energy Efficiency: EVs are generally more energy-efficient than internal combustion engine vehicles, translating to lower energy costs
8

7
votes
Large-scale renewable energy company

John Greenway

Starting a large-scale renewable energy company requires significant investment in technology and infrastructure, as well as navigating complex regulations and grid integration.
A large-scale renewable energy company is an enterprise that focuses on the development, production, and distribution of renewable energy resources on a massive scale. This includes solar power plants, wind farms, hydroelectric power stations, biomass energy facilities, and geothermal power projects. The aim of such a company is to provide sustainable and clean energy solutions to meet the increasing global demand while reducing reliance on fossil fuels and mitigating environmental impact.

Energy Capacity: Ability to generate electricity on a large scale, typically in megawatts (MW) or gigawatts (GW).

Renewable Resource Acquisition: Capability to secure and access renewable energy sources, such as solar, wind, hydro, biomass, and geothermal resources.

Project Development: Expertise in planning, designing, and executing large-scale renewable energy projects from inception to completion.

Grid Interconnection: Integration with power grids to supply clean energy to customers and leverage favorable regulatory frameworks.

Energy Storage Solutions: Implementation of efficient energy storage systems to balance power supply and demand fluctuations.
9

11
votes
Luxury fashion brand

Giorgio Armani

Starting a luxury fashion brand requires extensive knowledge of fashion design, marketing, and supply chain management, as well as significant financial investment.
A luxury fashion brand is a business that specializes in producing high-end, exclusive clothing, accessories, and footwear. It caters to a niche market of discerning individuals who prioritize quality, craftsmanship, and prestige in their fashion choices. These brands focus on creating unique and desirable pieces that evoke sophistication, elegance, and luxury.

Celebrity Endorsements: Numerous A-list celebrities

Brand Name: Armani

Year Founded: 1975

Headquarters: Milan, Italy

Signature Style: Timeless elegance with clean lines
10

7
votes
Private equity firm

J.P. Morgan

Starting a private equity firm requires extensive knowledge of finance and investment, as well as significant capital investment and a strong network of investors.
A private equity firm is a type of investment company that pools funds from accredited individuals, institutional investors, and high net worth individuals to finance and acquire ownership stakes in private companies. The primary objective of private equity firms is to generate attractive returns on investment by restructuring, improving operational efficiencies, and ultimately selling their investments for a profit.

Funding Source: Accredited individuals, institutional investors, high net worth individuals

Investment Focus: Private companies

Ownership Stakes: Acquiring ownership stakes in target companies

Return Objective: Generate attractive returns on investment

Restructuring: Implementing operational and financial changes

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Discussion

Ranking factors for difficult business

Capital requirements

The amount of initial investment needed to start the business, including expenses for infrastructure, inventory, equipment, and licenses. Businesses with high capital requirements are generally more difficult to start.
Competition

The level of competition in the industry can affect how difficult it is to start a business. High competition means that it can be more challenging to establish a market position and differentiate your products or services from others.
Regulatory environment

Some industries have strict regulations imposed by government bodies, leading to additional challenges and legal requirements for new businesses. This can add complexity and increase barriers to entry.
Technical expertise

Industries that require specialized knowledge or technical expertise can be more challenging to start without prior experience or education in that field.
Market demand

It is important to consider the demand for your product or service in the market. Starting a business with low demand is likely to be more challenging.
Supply chain and logistics

Complex, international, or otherwise complicated supply chains can present significant hurdles when starting a new business.
Scalability

The ability to grow and scale the business can impact the difficulty of starting it. Businesses with limited growth potential or scalability may face more challenges in achieving long-term success.
Customer acquisition

The costs and effort associated with attracting customers, as well as the conversion rate from lead to customer, can influence the difficulty of starting a business.
Profit margins

Industries with low-profit margins can be more challenging to start, as they may require higher volumes of sales to generate a sustainable income.
Innovation and technology

Industries that are constantly changing due to new technologies, trends, or innovations can be more difficult to start because of the need to constantly adapt and stay ahead of the curve.
Team and talent

Assembling and retaining the right team with the necessary skills, expertise, and knowledge can be a challenge when beginning a new business.
Timing

The external factors and market conditions at the time of starting the business can also impact the difficulty of getting the venture off the ground.

About this ranking

This is a community-based ranking of the most difficult business to start. We do our best to provide fair voting, but it is not intended to be exhaustive. So if you notice something or business is missing, feel free to help improve the ranking!

Statistics

2137 views
179 votes
10 ranked items

Voting Rules

A participant may cast an up or down vote for each business once every 24 hours. The rank of each business is then calculated from the weighted sum of all up and down votes.

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More information on most difficult business to start

Starting a business is never easy, but some industries prove to be more challenging than others. When it comes to the most difficult business to start, opinions may vary depending on individual experiences and perspectives. However, there are a few industries that consistently rank high on the difficulty scale, such as the restaurant industry, retail, and technology startups. These businesses require a significant amount of capital, extensive market research, and careful planning to ensure success. Additionally, they often face fierce competition, high operating costs, and a steep learning curve. Despite these challenges, entrepreneurs with a strong vision and determination can still thrive in these industries, but it takes a lot of hard work and perseverance to make it happen.