The ‘Boring’ Business Model Quietly Making Millionaires
While everyone chases the next tech unicorn, ‘boring’ businesses like laundromats and plumbing are quietly minting millionaires. Here’s why predictable revenue beats flashy ventures.
·3 min read·5 views·Beginner-friendly
What is the ‘Boring’ Business Model?
The 'boring' business model refers to investing in or operating businesses that provide essential, everyday services—think laundromats, plumbing, and HVAC services. Despite lacking the allure of tech startups, these businesses offer high success rates and steady revenue streams.
Why Do ‘Boring’ Businesses Succeed?
These businesses succeed due to recurring revenue, low competition, and essential services that people need regardless of economic conditions. Unlike tech startups, they don't require constant innovation or pivots, which simplifies operations.
Recurring Revenue
Laundromats, self-storage facilities, and HVAC services offer predictability. Customers return regularly, providing a steady income stream that reduces the pressure to constantly acquire new customers.
Essential Services
People can't ignore a broken air conditioner or a need for clean clothes. These businesses provide services that are necessary, ensuring consistent demand.
Low Competition
Because these industries are considered unglamorous, there's less competition. This scarcity can lead to higher margins for those willing to enter the market.
Who Is Thriving in This Model?
Many entrepreneurs, like Codie Sanchez, have transitioned from high-profile careers to owning multiple 'boring' businesses. These individuals are building significant wealth by solving everyday problems, often selling their businesses to private equity firms for substantial sums.
How Can You Start a ‘Boring’ Business?
Identify a service with steady demand in your area, research existing competition, and consider buying an existing business instead of starting from scratch. Many owners are near retirement and prefer selling to a motivated buyer.
Start Small
Not everyone can afford to buy a laundromat, but starting a cleaning or vending machine business requires minimal capital. Focus on proven demand and gradually build your business.
Key Takeaways
Boring businesses offer higher success rates than tech startups.
Recurring revenue and essential services ensure steady demand.
Less competition leads to better margins.
Starting small and growing gradually can be a smart strategy.
Frequently Asked Questions
Is it risky to invest in a ‘boring’ business?
While all investments carry risk, ‘boring’ businesses generally have higher success rates and less volatility than tech startups.
What are the initial costs to start a ‘boring’ business?
Costs vary by industry, but services like cleaning can start with as little as $2,000, while buying a laundromat might require upwards of $200,000.
How do I find a business to buy?
Network with local business brokers, attend industry events, and research online marketplaces specializing in business sales.
If this resonated — or if you violently disagreed — I'd like to hear from you. I work with a small number of founding teams each quarter. If you're building something real, book a discovery call or connect with me on LinkedIn.
