6 BORING Businesses that Always Make Millionaires (90% success rate)

Summary

In this video, David, CEO of Filterby, explains how building wealth through 'boring' businesses is both simple and scalable. He highlights two main types of cash flow businesses: property-oriented and service-based. David emphasizes starting small, understanding the market, and focusing on long-term systems. He shares examples like ATM businesses, laundromats, equipment rental, and waste management. He also discusses his experience with HVAC services and the importance of focusing on a local niche, perfecting systems, and gradually expanding. The key to success is maintaining a lean approach, learning from mistakes, and validating ideas before scaling.

Takeaways

• 😀 Making hundreds of millions of dollars is not complicated; it involves finding a boring business you're willing to commit to.
• 😀 Property-oriented businesses, like ATMs and laundromats, can generate significant cash flow with a small initial investment but require careful maintenance and location management.
• 😀 Paul Alex grew his ATM business from a single machine to over 30, earning $10,000 a month in profit by gradually expanding and focusing on location and maintenance.
• 😀 Laundromats have a 95% success rate, but they require substantial capital, maintenance, and a strategic location to be profitable.
• 😀 Equipment rental businesses offer high profit margins and tax benefits, but managing the logistics and maintenance can be challenging.
• 😀 Service-based businesses, like HVAC and tow truck services, are capital-light, but require knowledge, systems, and the ability to stand out in competitive markets.
• 😀 The key to scaling service businesses is starting small, mastering the local market, and expanding gradually while utilizing modern marketing techniques like social media.
• 😀 Waste management is a potentially billion-dollar industry that offers steady demand but requires research and understanding of local needs to find an angle for success.
• 😀 Starting lean, understanding the business inside and out, and building systems to address pain points are essential for scaling a business successfully.
• 😀 Validating your business idea with minimal investment, like running ads or testing service demand, can lower your risk and ensure there’s consistent demand before fully committing.

Q & A

What makes starting a business in 'boring' industries a viable strategy for making millions?

Boring industries often have simple business models with predictable cash flows. They also tend to be less competitive, which makes it easier to scale once a sustainable system is in place.

How did Paul Alex grow his ATM business from a small investment to a multimillion-dollar enterprise?

Paul Alex started by purchasing a single ATM for $2,100 and placed it in a nail salon. After seeing early profits, he expanded slowly by adding more ATMs across various locations. The key to his success was gradual expansion, maintaining the machines, and securing good locations.

What is the key to success in the ATM business?

The key factors for success in the ATM business are choosing high-traffic locations, maintaining the machines, and ensuring there is always money available in the ATMs for withdrawals.

Why do laundromats have such a high success rate?

Laundromats have a 95% success rate because they are a relatively low-maintenance business. However, success requires proper location selection, regular maintenance, and ensuring the facility remains clean and safe.

What are the advantages and challenges of the equipment rental business?

The equipment rental business is advantageous due to its tax efficiencies and steady demand for various types of equipment. However, challenges include the need for regular maintenance and timely logistics to deliver equipment.

Why are service-based businesses considered better for scaling than property-based businesses?

Service-based businesses are generally less capital-intensive and offer more scalability. With the right knowledge and systems, they can grow faster than property-based businesses, which often require larger upfront investments and ongoing maintenance costs.

What is the secret to succeeding in a service-based business like HVAC?

To succeed in a service-based business, you need to start small, become the best in your local area, and gradually expand by building systems. Social media plays a crucial role in reaching local communities at scale.

How did the local tow truck business in Talladega, Alabama, become so successful?

The success of the tow truck business came from focusing on a niche: towing 18-wheelers. By offering a specialized service and having the right equipment, the business could charge premium prices and dominate the local market.

What makes the waste management industry an attractive business opportunity?

Waste management is an essential service, and there is constant demand from both residential and commercial customers. While it’s competitive, smaller players can find success by identifying local gaps or providing superior service.

How can someone use low-risk methods to validate their business idea before committing large capital?

One way to validate a business idea is by starting with low-cost methods such as drop shipping, running ads, or creating a landing page to test customer interest before making larger investments in inventory or infrastructure.