The Most Difficult Form of Business to Start, Ranked

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

Updated on Apr 30, 2024 06:24

Embarking on the endeavor of starting a business often involves navigating through numerous challenges, and some types of businesses inherently present more obstacles than others. Identifying which business is the toughest to get off the ground can empower future entrepreneurs by preparing them for the hurdles ahead. This insight is gained best when shared amongst those who have firsthand experience. By casting your vote on which business you believe is the most challenging to start, you contribute to a collective knowledge base that aids aspiring business owners in making informed decisions. Your participation helps highlight the complexities of various entrepreneurial ventures and brings to light the resilience required to succeed in the business world.

What Is the Most Difficult Form of Business to Start?

1

39
votes
Biotechnology startups

Biotechnology startups require a significant investment of time, money, and resources. The industry is heavily regulated, and the process to bring a product to market can take years. Additionally, the technology involved can be complex, requiring specialized knowledge and expertise.
Biotechnology startups are businesses that focus on the application of biological and technological advancements for the development of products or services in fields such as medicine, agriculture, environmental conservation, and more. These startups require extensive scientific knowledge, specialized equipment, and significant investment to succeed.

Scientific Expertise: In-depth knowledge of biology, genetics, and other related fields is essential.

Research and Development: Extensive R&D to explore and develop innovative solutions.

Regulatory Compliance: Strict compliance with regulations for product safety and ethical considerations.

Funding and Investment: Substantial financial investment is required due to the high costs of research, development, and infrastructure.

Intellectual Property: Protection of valuable intellectual property through patents and licensing is crucial.
2

29
votes
Aerospace manufacturing companies

Chief Executive Officer (CEO)

Aerospace manufacturing companies require extensive capital, as well as specialized equipment and facilities. The industry is also heavily regulated, with stringent safety standards and government oversight.
Aerospace manufacturing companies are highly complex businesses involved in the design, development, and production of aircraft and spacecraft. These companies are responsible for manufacturing various components and systems used in the aerospace industry, including engines, avionics, and airframes. Aerospace manufacturing requires significant investment, technical expertise, and rigorous adherence to industry standards and regulations.

Capital Intensive: Aerospace manufacturing companies require massive capital investments due to the high cost of research and development, specialized equipment, and production facilities.

Advanced Technology: These companies rely on cutting-edge technology for design, simulation, testing, and production processes to meet the stringent safety and performance requirements of aerospace products.

Regulatory Compliance: Aerospace manufacturing companies must comply with strict international regulations and certifications, such as those set by the Federal Aviation Administration (FAA) and International Civil Aviation Organization (ICAO).

Highly Skilled Workforce: The industry demands a highly skilled workforce, including aerospace engineers, manufacturing specialists, technicians, and quality control personnel who possess expertise in specialized areas.

Supply Chain Management: Effective supply chain management is crucial, as aerospace manufacturing involves sourcing and integrating a wide range of components from global suppliers while ensuring quality, reliability, and traceability.
3

17
votes
Pharmaceutical companies

Pharmaceutical companies require significant investments in research and development, as well as regulatory approval before bringing products to market. The industry is also highly competitive, with a limited number of blockbuster drugs driving the majority of revenue.
Pharmaceutical companies are businesses that specialize in the development, manufacturing, and distribution of pharmaceutical drugs for medical use. They play a crucial role in researching, testing, and producing medications that help prevent, diagnose, and treat various diseases and conditions.

Strict Regulatory Requirements: Pharmaceutical companies must comply with rigorous regulations and guidelines set by health authorities to ensure the safety, efficacy, and quality of their products.

Research and Development: These companies invest heavily in research and development to discover and develop new drugs and therapies, which often involves significant time, cost, and regulatory hurdles.

Clinical Trials: Pharmaceutical companies conduct clinical trials to test the safety and effectiveness of their drugs before seeking regulatory approval.

Intellectual Property Protection: Patents and intellectual property rights are crucial for pharmaceutical companies to protect their innovations and recoup their research and development investments.

Complex Supply Chains: Pharmaceutical companies manage intricate supply chains involving raw materials, manufacturing facilities, distribution networks, and regulatory compliance.
4

18
votes
Oil and gas exploration and production

Oil and gas exploration and production require substantial capital investments, as well as specialized equipment and expertise. Additionally, the industry is subject to significant regulatory oversight, and the price of oil and gas can be volatile.
Oil and gas exploration and production is the process of locating, extracting, and processing crude oil and natural gas reserves from underground reservoirs. This form of business involves significant technical expertise, extensive capital investment, regulatory compliance, and potential environmental risks.

Expertise: Specialized knowledge of geology, engineering, and drilling techniques

Capital requirement: High initial investment for equipment, infrastructure, and exploration

Exploration: Surveying and seismic data analysis to identify potential reserves

Drilling: Utilizing advanced drilling techniques to access underground reserves

Production: Extracting oil and gas through drilling wells and deploying production facilities
5

19
votes
Commercial real estate development

Commercial real estate development requires significant capital investments and expert knowledge of the market. Additionally, developers must navigate complex zoning and permitting regulations.
Commercial real estate development is a complex and challenging form of business that involves the purchase, development, and management of properties for commercial purposes. It generally refers to the process of converting raw land or existing buildings into income-generating assets that cater to businesses and organizations. The primary goal of commercial real estate development is to create spaces that meet the specific needs of businesses and generate a profit for the developer.

High Capital Requirement: Significant initial investment is required for land acquisition, construction, and development.

Complex Planning and Permitting: Extensive planning and obtaining permits from various authorities are crucial due to zoning regulations, environmental concerns, and other factors.

Market Research and Analysis: Thorough market research is necessary to identify demand, competition, and potential tenants.

Long Development Timelines: The development process can be lengthy, involving pre-development activities, construction, and leasing, which can take several years to complete.

Risks and Market Volatility: Commercial real estate development is susceptible to market fluctuations, economic conditions, and unforeseen risks.
6

9
votes
High-tech startups

High-tech startups require significant investments in research and development, as well as specialized knowledge and expertise. The industry is also highly competitive, with rapid technological advancements and short product lifecycles.
High-tech startups refer to businesses that develop and commercialize advanced technology products or services. These startups typically require extensive technical knowledge and expertise, and are often driven by innovation and disruption in industries such as artificial intelligence, biotechnology, software development, hardware manufacturing, and renewable energy.

Capital Intensive: High-tech startups often require significant capital investment for research and development, prototyping, hiring skilled talent, and scaling their operations.

Rapid Technological Change: The high-tech industry is characterized by rapid advancements and evolving technologies, requiring startups to stay updated and adapt quickly to changing trends.

Intellectual Property: High-tech startups often rely on intellectual property assets like patents, trade secrets, and copyrights to protect their innovations and maintain a competitive advantage.

High Failure Rate: Due to the complex and competitive nature of the high-tech industry, startups in this space have a higher risk of failure compared to other types of businesses.

Global Market Potential: High-tech startups have the opportunity to reach global markets and serve a diverse customer base with scalable digital products or services.
7

15
votes
Renewable energy companies

Renewable energy companies require significant investments in research and development, as well as specialized equipment and expertise. The industry is also subject to government subsidies and regulations, which can be complex and ever-changing.
Renewable energy companies are businesses that focus on harnessing and providing sustainable energy from natural resources such as sunlight, wind, water, and biomass. The primary goal of these companies is to reduce reliance on fossil fuels and minimize the environmental impact of energy production.

Capital Intensive: Renewable energy companies require significant upfront investments in technologies, infrastructure, and research and development.

Regulatory Challenges: The industry is subject to various regulations, permits, and environmental standards that can be complex and time-consuming to navigate.

Technological Advancements: The companies need to stay updated with the latest advancements in renewable energy technologies to remain competitive.

Intermittency: Renewable energy sources are often intermittent, depending on factors such as weather conditions. This requires companies to develop effective energy storage and management systems.

Market Volatility: The renewable energy market can experience fluctuations due to changing government policies, subsidies, and incentives.
8

13
votes

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

Space exploration companies

Space exploration companies require extensive capital and specialized equipment and facilities. The industry is also heavily regulated, with stringent safety standards and government oversight. Additionally, space exploration is a relatively new field, with few established players and significant technical challenges.
9

12
votes
Medical device manufacturers

Medical device manufacturers require significant investments in research and development, as well as regulatory approval before bringing products to market. The industry is also highly competitive, with a limited number of established players dominating the market.
Medical device manufacturers are businesses involved in the creation, development, production, and distribution of medical devices. These devices can range from simple tools such as wound dressings and syringes to complex machinery like MRI scanners and surgical robots. The medical device industry is highly regulated and requires extensive knowledge of medical regulations, quality control processes, and compliance standards. Starting a medical device manufacturing business requires significant investments in research and development, manufacturing facilities, skilled workforce, and obtaining necessary certifications and approvals.

Quality Standards: Adherence to strict quality standards and compliance with regulations such as ISO 13485 and FDA guidelines.

Research and Development: Investment in extensive research and development to innovate and create new medical devices or improve existing ones.

Manufacturing Facilities: Setup of manufacturing facilities with specialized equipment and cleanroom environments to ensure safe and sterile production.

Supply Chain Management: Efficient management of the supply chain to source high-quality raw materials, components, and ensure timely production and delivery.

Regulatory Compliance: Navigating complex regulatory pathways and obtaining necessary certifications, approvals, and clearances from regulatory bodies.
10

5
votes
Nuclear power companies

Nuclear power companies require significant investments in infrastructure and specialized equipment and expertise. Additionally, the industry is subject to strict safety regulations and public scrutiny.
Nuclear power companies are organizations that specialize in the production and distribution of nuclear power. They are responsible for operating nuclear power plants, generating electricity through nuclear fission reactions. Nuclear power is a highly regulated, complex, and capital-intensive industry, making nuclear power companies one of the most difficult forms of business to start.

Strict regulations: Nuclear power companies must adhere to strict regulations set by government agencies to ensure safety and security

High capital requirements: Starting and operating a nuclear power company requires significant upfront capital investment

Complex technology: Nuclear power plants involve complex systems and technologies that require specialized expertise

Long development timeline: It takes several years to plan, construct, and commission a nuclear power plant

Intensive licensing process: Obtaining the necessary licenses and permits for a nuclear power plant can be a lengthy and rigorous process

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Ranking factors for difficult form

Industry competition

Consider the level of competition in the industry you are entering. Highly competitive industries make it difficult for new businesses to gain a foothold and thrive.
Capital requirements

Some businesses require a significant amount of initial capital for startup or entry into the market. This can make it challenging for entrepreneurs without the necessary financial backing.
Regulatory barriers

Many industries are heavily regulated by federal, state, and local authorities, making it difficult for new businesses to navigate the complex framework of rules and regulations.
Market size

Consider the size of the market you are targeting. Smaller or niche markets can be easier to enter, but may also limit the potential for growth.
Technical expertise

Certain businesses may require specialized knowledge or technical abilities that can be difficult to acquire.
Intellectual property

In some industries, businesses rely heavily on patents, trademarks, and copyrights, which can be difficult and costly to obtain and maintain.
Supply chain complexity

Some industries have complex supply chains that can be challenging for a new business to navigate and manage.
Barriers to entry

Consider any barriers to entry, such as licensing requirements, specific skills or qualifications, and network connections. These can make it more difficult for new entrepreneurs to break into the market.
Marketing and brand development

Building a strong brand and marketing a new business can be time-consuming and expensive, which can present challenges for a new business.
Timing

The success of some businesses may depend on market timing or other external factors, such as entering a market at the optimal point in an economic cycle.
Customer acquisition

Attracting customers to a new business can be difficult, especially in industries with strong brand loyalty.
Customer retention

Keeping customers loyal and engaged is crucial but can be challenging for new businesses, particularly in industries where customer switching costs are low.
Scalability

Some business models are more difficult to scale up as demand grows, requiring significant investments in infrastructure, staff, and other resources.
Risk factors

Consider the risk factors associated with launching a new business, such as market risk, regulatory risk, and technological risk. Some industries are inherently more risky than others.
Economic conditions

The overall state of the economy can impact how challenging it is to start and grow a business. Economic downturns can make it more difficult for new businesses to secure funding, retain customers, and achieve sustainable growth.

About this ranking

This is a community-based ranking of the most difficult form of 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 form is missing, feel free to help improve the ranking!

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168 votes
10 ranked items

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

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More information on most difficult form of business to start

Starting a business can be an exciting and rewarding experience, but it can also be a daunting task. There are many factors to consider when starting a business, including the type of business you want to start, the market you want to enter, and the resources you have available. One of the most challenging aspects of starting a business is choosing the right type of business to pursue. Some types of businesses are more difficult to start than others, requiring more resources, expertise, and time. In this article, we will explore some of the most challenging forms of business to start and why they are so difficult.