I've been running a small commercial cleaning company for eight years. It's not sexy. Nobody writes articles about it. But we've been profitable since month four, and I sleep well at night. Every time I get tempted to pivot into something flashier, I remember how many 'game-changing' startups I've watched flame out. Slow and steady works for me.
Small Business
I would rather own a boring business that makes money than chase the next big idea
Cleaning is about as boring as it gets, and that's a compliment. Recurring revenue, clear contracts, low customer acquisition cost. What's not to like? The only downside is it's hard to sell for a big multiple if you ever want out.
How did you get your first few clients? I'm in a similar spot with a lawn care business and struggling to get past word of mouth.
Mostly cold calling property managers and a couple of local BNI groups. It was miserable at first but the referrals compounded after about a year.
I think the 'boring' label is overused. A business is boring when you don't understand it. To me, cleaning is interesting because the margins are predictable. Chasing the next big thing usually means sacrificing predictability for a lottery ticket.
Different take. I ran a boring service business for six years and hated it. Made decent money, but the work itself drained me. Now I'm in a more volatile industry and while the income swings more, I'm happier. Not everyone is built for slow and steady.
The key to a boring business mmaking money is usually that it's unglamorous enough that competition stays low. Once something becomes 'interesting' to outsiders, everyone piles in and margins get crushed.
What's your definition of 'makes money'? Lots of people say they're profitable but when you dig in, the owner's salary is basically zero. Not saying that's you, just something I've seen.
That's a fair point. I'd add that boring businesses often have hidden concentration risk. If three clients make up 70% of your revenue, it's not as stable as it lokos.
Good question. After paying myself a market-rate salary for my role, we cleared about 18% net last year. Top client is under 15% of revenue. Took a while to get there.
That's helpful, thanks. I guess my issue is I keep reading about AI automating everything and wonder if I'm building in the wrong direction.
AI won't clean a toilet or mow a lawn anytime soon. Physical service work has a long runway.