The riskier business isn't the one with the thinnest margin

Low-margin businesses operate without a safety buffer. A small increase in fuel prices, labor costs or raw materials – or even a minor slowdown in demand – can erase most of their profits. That is why these industries obsess over scale, utilization, logistics and operational efficiency. Not to maximize profits – but simply to protect them. The interesting question is: which business model is actually riskier – a low-margin business with massive scale, or a high-margin business with limited demand?