The Profitability of Boring Businesses Nobody Talks About

A successful business for the average individual is the new tech AI startup with a viral app, the new social media platform capturing the attention of the youths.
These are the businesses that get all the headlines. You see them in the news getting funded, signing up ambassadors and influencers. That is the definition of a successful business for many.
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The truth is most wealth in the real world doesn’t come from exciting businesses. I call them the boring businesses. They aren’t glamorous, they might sound dirty or tacky and often overlooked but they make the world function. They are an important part of the world, and many smart investors and entrepreneurs see them as a goldmine.

What is a Boring Business?

A boring business is not a business failing or struggling to survive. It is actually a business that exists in the essentials industry. It might look like a repetitive task with little innovation but they print steady cash.
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Nobody gets excited about boring businesses, but they pay the bills and create jobs with money to spare for investment.

Think about

• Waste Management and Recycling: The world shut down during COVID, but this is an essential business that must pick our trash and recycle or repurpose it.
• Commercial Cleaning: The janitorial services that clean workplaces, schools, offices, and hospitals.
• Industrial supply: These are companies that make bolts, nails, nuts, and other essential things.
• Pest control: They keep home and workplace free of infestations.
  You don’t see these companies on the front page of TechCabal or TechCrunch but you need them to run for world to survive.

Why Boring Businesses are profitable

Recurring Revenue

Your flashy digital marketer need to prepare a powerpoint to gain an investor. The flashy startup needs to pitch for investor to secure a funding round.
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This is not the case with boring businesses. Boring is beautiful. Boring businesses don’t need hype, they need returning customers. Many of the boring businesses like waste management and commercial cleaning operate on a subscription or service-contract model. An industrial supplier has standing orders with manufacturers. This creates stable cashflow and recurring revenue not seen in many exciting businesses.

Boring business only needs to be stable and consistent for success to happen. While exciting businesses are racing to scale, boring businesses are mastering reliability.

Low Competition

In a business plan, you do a SWOT analysis to know your business strength and the threats against it. You can remove competition from that analysis because the industry isn’t exciting. Boring business industry isn’t sexy and as such doesn’t attract competitions.

Social media made many to believe a business has to be glamorous so you can share on Instagram , X(Twitter) , Facebook , LinkedIn , and TikTok . How many times have you seen borehole drilling companies, packaging factories, construction shops or recycling plants all glamorous on social media?

They are busy making positive cashflow every month with little or no competition because of the glamorous thoughts of people.

They are Essentials not Trend.

During COVID or recession, people lost their jobs while some exciting businesses lost revenue, you might cancel your Netflix and Spotify subscription to survive that period. Well, you don’t cancel your waste manager service or cleaning service.
Boring businesses are resilient to economic downturns because they are essential.
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During COVID, Zoom communications shares price rose to over 500 USD but now less than 90 USD. The price increase was trend driven. There were lockdown orders and people needed to attend meetings, schools, conferences, and workshops, Zoom was the best option. The lockdown is lifted, and Zoom is not in use like before.

That is totally different with boring businesses. Boring businesses thrive because they focus on systems not trends. Once the process works, the business thrives.

Trend driven businesses keeps iterating their business to align with the next trend, meanwhile boring business owners keep making gains.

My perspective

As someone running a recycling business, I have seen it firsthand. Recycling is not glamorous, it is messy, demanding, energy sapping, and dirty.

However, when you look at the numbers, you see the truth. Every kilogram of plastic collected, sorted, processed, and sold generates revenue, job, and a green environment.

It feels repetitive but that sort of boring business is a working and battle tested one.

The Hive connection

Hive is an example of the boring business or should I say the boring blockchain. You don’t see the top crypto influencers trending Hive or the hype on twitter, but you see the Hive system.

Hive is quietly rewarding authors, builders, supporting communities, creating connections, and building value. Hive doesn’t chase the glamourous crypto projects that come with hype only to die after exchange listing. Hive is building consistency.

Final Thought

Boring is profitable. The goal of a business is to create value that consumers will buy not to impress people.

I urge entrepreneurs looking to start a new business not to overlook the boring industry. It can be a local service that is run poorly or a need not met. Solving an essential problem can build a stable and profitable business than trying to follow the crowd.

The same goes for investors that focus on the glamorous businesses. You should look at companies with strong fundamentals, consistent revenue, solid cashflow, and offering an essential service. This is the time to focus on companies that recycles the waste not the one building flashy phone pouch from recycled plastic.

So, while others chase excitement, focus on what works and smile to the bank even if it is boring.

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What are your thoughts on this post? Do you know any boring business in your locality that are constantly smiling to the bank? Share with me in the comments below.

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