There are advantages and advantages to each type of endeavor.
Products: A popular product is likely to sell well, and can generate a handsome profit for the entrepreneur; however, rapid changes in consumer tastes (as in the electronics industry) can very quickly turn a profitable business into an unprofitable one.
Services: In the area of services, a well-chosen type of service (i.e., medical or personal-care related) can also be very profitable; a disadvantage is that such service industries are highly competitive, and tend to experience a high rate of employee turnover.
Having worked in both fields, I feel that services would be a riskier endeavor because of the lack of qualified persons who are willing to work for low wages, few or no benefits, and irregular hours. Further, many service providers derive much of their income from government contracts, which can be changed or cancelled with little or no notice. Products are definitely less risky than services.
I hope this is helpful.
Apr 13th, 2015
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