Good morning to all new and old readers! Here is a special Wednesday edition of Capital Ideas, exploring 11 “Boring” business ideas and five success stories from the last week to help you find your next business or investment.

If you enjoy this, feel free to forward it along to a friend or colleague who might too. First time reading? Sign up here.

Today’s edition:

Cheers,
Caleb

P.S. Send me feedback on how we can improve. I respond to every email.

Ideas

“Boring” Businesses Are Trending

The flashy startups and tech companies just aren’t cutting it anymore. An unexpected sector has emerged (maybe re-emerged?) as a sustainable model: the "boring" business.

These unassuming enterprises, often overlooked and underappreciated, are proving to be goldmines for savvy investors and entrepreneurs alike. From laundromats and car washes to waste management and vending machines, boring businesses are quietly revolutionizing financial freedom.

The appeal of these seemingly mundane ventures lies in their stability, consistent cash flow, and recession-resistant nature. As Codie Sanchez and other forward-thinking investors have discovered, boring businesses offer a unique blend of low risk and high reward. This winning combination hasn't gone unnoticed by the private equity world either.

If you want to know where the money is, follow the investors. In recent years, there's been a growing trend of private equity firms turning their attention to these unexciting yet lucrative opportunities. Flexstone Partners, for instance, has built a 25-year investment thesis around specializing in "boring companies that no one wants to talk about at a cocktail party". This approach has resonated with institutional investors, highlighting the hidden potential in these overlooked sectors.

That said, here are 11 “boring” businesses you can start, with startup costs and potential revenue numbers.

Keep in mind: Even if you weren’t to start one of these businesses yourself, there’s a huge market around these businesses that you can tap into—Logistics, Labor, Websites, Tech, etc.

1: Laundromats

• Startup costs: $200,000 - $500,000

• Potential annual revenue: $30,000 - $1 million

Start with deciding on a business model (attended/unattended). Then conduct market research to identify an ideal location with high foot traffic and a need for laundry services (i.e. high density of apartments without laundry).

Secure the necessary funding, typically from $200,000 to $500,000, to cover equipment, lease, and initial operating expenses. Choose between coin-operated or card-based payment systems, and consider offering additional services like wash-and-fold or dry cleaning to increase revenue.

Negotiate a lease for your chosen location and work with a contractor to design an efficient layout. Purchase high-quality, energy-efficient washers and dryers, and install adequate plumbing and electrical systems. Don't forget to include amenities like seating areas, vending machines, and Wi-Fi to enhance customer experience.

Obtain all required licenses and permits from local authorities, and ensure compliance with health and safety regulations. Implement a robust maintenance schedule to keep your machines in top condition and minimize downtime.

Develop a marketing strategy to attract customers, including local advertising, social media presence, and promotional offers. Consider implementing a loyalty program to encourage repeat business.

Establish efficient operational procedures, including cash handling, cleaning schedules, and customer service protocols. As your business grows, explore expansion opportunities, such as opening additional locations or partnering with local businesses for commercial laundry services.

A laundromat can provide a stable, passive income stream with minimal day-to-day involvement.

Having a continually growing market helps too. The global laundry market is set to reach $39.94 Billion by 2030.

2: Pest Control Services

• Startup costs: $200,000 - $500,000

• Potential annual revenue: $30,000 - $1 million

A pest control business requires some technical knowledge, so working for a pest control company could be helpful before diving into this business opportunity!

Obtain the necessary certifications and licenses, which vary by state but typically involve completing courses in pest management and passing exams.

Decide whether you'll focus on residential, commercial, or both sectors. Initial startup costs can range from $10,000 to $50,000, covering equipment, supplies, and a vehicle.

Invest in quality pest control equipment and eco-friendly products to stay competitive and environmentally responsible. Consider specializing in specific pests or offering green pest control solutions to differentiate your business.

Establish relationships with suppliers to ensure a steady stock of pesticides and equipment. Implement a robust scheduling and customer management system to handle appointments and follow-ups.

Create a strong brand identity and develop a marketing strategy. This should include a professional website, local SEO, social media presence, and networking with real estate agents and property managers.

Prioritize ongoing education to stay updated on the latest pest control techniques and regulations. As you grow, consider hiring and training additional technicians to expand your service capacity.

3: Self-Storage Facilities

• Startup costs: $2 million - $5 million

• Potential annual revenue: $300,000 - $1 million+

Starting a self-storage business requires significant initial investment but can yield substantial long-term returns.

Secure funding, typically ranging from $2 million to $5 million, to cover land acquisition, construction costs, and initial operating expenses. Choose between developing a new facility or purchasing an existing one, considering factors like location, accessibility, and expansion potential.

Design and build a secure, efficient facility. Implement modern security measures, including surveillance cameras, access control systems, and individual unit alarms. Consider climate-controlled units to attract customers with valuable or sensitive items.

Obtain necessary permits and zoning approvals from local authorities. Ensure compliance with all relevant regulations, including fire safety and environmental standards.

Develop a user-friendly website with online reservation and payment capabilities. Implement a robust property management software to handle bookings, billing, and facility maintenance.

Create a marketing strategy targeting both residential and commercial customers. Utilize local advertising, SEO, and partnerships with real estate agents and moving companies to attract clients.

Hire and train staff to manage day-to-day operations, including customer service, security monitoring, and maintenance. Consider offering additional services like moving supplies sales or truck rentals to increase revenue streams.

Upgrade to Capital Ideas Premium to read the rest.

What do you get with premium?

➤ Proprietary insight: Our team of business nerds scours the depths of the internet, analyzes thousands of data points, and selects only the most accessible ideas

➤ No fluff: We’re written by humans and don’t share any generic fluff written by AI

➤ Frameworks and business models: We share our proprietary list of company building frameworks and business models, and apply these to current market opportunities

➤ Deeply researched reports: Reports are deeply researched yet easy to consume, and show you how different businesses work

➤ Actionable steps: Each report comes with a list of actionable next steps that can be taken to capitalize on each trend

That’s all for today, folks. As always, please give me your feedback. What do you want to see more or less of? How can we make Capital Ideas more useful to you? Other suggestions? Please let me know.

Have a wonderful rest of the week, all.

Cheers,

Send us your feedback and help us continuously improve our content. We want to hear from you and respond to everyone.

Disclaimer: No information provided on our media properties—including newsletters, websites, or social platforms—constitutes financial advice or advice to be used in any form of decision-making. You may view the legal disclaimer here.