I have an amazing ability to predict how much money you are going to make. Do you want to know how you can do it too? great, keep reading.
But first, a quick question. what does a woman who just bought a vending machine and got a $28,000 raise mean, a guy who traded a 50/50 share of the profits from a boring business he already uses and a guy who added 3 new franchises to his portfolio, do they have anything in common? they are all part of the reverse cash flow community where they are there with over 1700 people learning how to achieve financial freedom (with a lot of boring business).
today in <10 min we will cover:
- no elon here – i’m stuck with boring and elon can have the metaverse (and twitter i guess)
- sows – a framework for boring businesses to buy, build or invest
- everyone loves lists – here are 130+ boring businesses we love
- look at my portfolio: where do my assignments go now
listen to the audio version of this week’s newsletter!
Tell me what industry you want to build or work in and I’ll tell you your future.
The framework is like this: the sexier the industry is → the less money you are going to make.
Reading: Boring businesses to buy
Not always true if you’re a brilliant tech founder, but for the rest of us I’m pretty sure it’s just science. Maybe that’s why everything in Hollywood pays poorly, marketing and advertising roles are at the bottom of the income bracket, as are journalists. too many people want to be those things, and the necessary credentials are not high. however, there are only some businesses that do not receive love, and I am here for them as onlyfans is for incels. I started calling these businesses “boring” because I like misdirection. If you tell people you invest in boring businesses, first of all, they probably won’t be that interested, and second, they’ll want to talk to you about their new AI-powered social media web 3.0 dating app. great.
Go connect to the metaverse while I get paid to clean your house and mow your lawn in the sunshine. I have a framework that I learned in private equity on how to invest in businesses lazily. so I thought I’d share with you that formula. because the truth is pe companies and smb buyers; we’re not rocket scientists, we’re not moonshots, we largely take something that exists and iterate on it. no elon musks here. And that’s okay because the world needs small businesses to serve us every day. So if you’re intrigued by “boring,” let me tell you what actually makes me snore.
“boring” business framework: sows
what’s a boring business you like to buy, build or invest in? this is my formula, i call it sows. like cows.
(obsolete) = minimal innovation
(old) = old business
(weak) = poor competition
(simple) = simple but necessary business model
step 1: how to know if a company is obsolete? the fax machine test
I look for companies that have not innovated. less innovation means more upside potential and therefore less risk. Let’s give a couple of examples, I walked into a business and they asked me to fax an ID. Yes. every time i make a deal and i see a fax machine, i smile like the cheshire cat ate the canary. a great trigger :
- do you still have a fax machine?
- have him call to place an order
- order in writing
all are good signs that you are in an outdated business model.
step 2: old & been around the block
I’m always nervous about attractive young people in the business world. I want surgery for the lindy effect. I’ve talked about that before, but essentially, the longer something has been around, the more likely it is to persist. therefore, most of the companies I buy or list have a 5-10-15 year track record in industries that have persisted.
step 3: weak competition
Typically, these industries have a lot of competitors like “meh, it’s just okay, it’s not that great, it’s all we’ve got.” think about it. How many of you love your landscaper? they are always on time, have automatic billing, proactively service, never miss a week, and pull weed without asking. probably not for most of them. Or how many awesome handymen have you had who proactively check on things you need to fix, show up on time, don’t leave a mess, and get the job done right? uh huh. weird. And yet, your lack of focus is your chance to charge a premium for faster, better services.
step 4: simple but necessary business model
nothing proprietary here. no biotech. no r&d These are just businesses that are generally in high demand, that have more business than they can handle, that if you can beat on speed or service, you can charge 20-50-100% more. just add billing software, customer service software, outsourced employees, and you’re good to go. If you want my favorite low-cost tools for running businesses, these will help you get started. These businesses below are all types that I have owned, invested in, or done research on. It doesn’t mean all businesses are great, but it does mean any business in this one could be great.
everyone ready? oh, and if you want to read to the end, you’ll like what I have for you. which I am actively investing in right now as we speak.
easier to start: startup businesses
I call them gateway companies to the smb property. These aren’t always the best companies to own as you scale and want higher total profits, but they can be an interesting way to dive in.
- vending machines
- ice vending machines
- pack & shipping centers
- franchise businesses
(Already own a laundromat or looking to own one? Make your business earn millions! Click here to learn more)
- podcast production: this is mine
- outsourced customer service
- accounting & accounting
- garbage collection
- garbage collection
- commercial cleaning
- window cleaning
- portable toilet rentals
- container rentals
- closeout services
- machine service
- commercial pressure washing & line drawing
- equipment rental
- landscaping and other
- seasonal lighting & evergreen
- pest control
- house painting
- adu & container homes
- home pressure washing
- airbnb/vrbo property management
- window cleaning
- tree trimming
- in -order Christmas decorations
- swimming pool/jacuzzi services
- construction of terraces & staining
- gutter cleaning
- household cleaning
- laundry services
- carpet/steam cleaning
- kitchen deep cleaning
- HVAC installation and cleaning
- mold, fire and water damage repair cleaning
- interior design
- home office construction
- epoxy flooring
- custom wallpaper installation
- garage door installation/service
- pet grooming
- pet care lodging & services
- moving services
- landscape contracting, design
- garage construction
- solar panel installation
- irrigation system installation
- canopy installation
- foundation repair
- septic service/pumping
- boat repair/maintenance
- recreational vehicle services
- appliance repair
heavy real estate deals
- mobile home parks
- rv parks & other
- storage centers
- mini-drop boxes
- car wash & other
- small houses for rent
- oil change centers
- mobile tire sales/service
- mobile glass repair
- trucking & logistics
- used carlots
- specialty food trucks – mobile wine business
- event dj
- event management
- photo booth, snapshot & fixture rentals
- portable potty rentals
- tent/party rentals
- cleaning equipment upon request
- hunting guides
- walking tours
- biking tours
- food tours
- surfboard and equipment rental
- gyms specializing in classes
- event management
- party rentals
- sneaker resale
- supercar rental
online education & training:
- almost any type of online education business
- online communities
industry, commerce & construction:
- asbestos removal
- carpet/tile/floor installation
- door/window installation
- electrical installation and service
- epoxy floors/countertops
- equipment operation
- fence installation
- fire sprinkler system installer/detector installation
- general contractor
- government contractor
- heating and cooling
- insulation installation (spray and standard)
- pipe laying
- septic tank installation and servicing
- removal of trees</li
- installation of storage racks
real estate transactions:
- home inspection/thermal imaging (utility analysis)
- real estate agent
- moving services
- loan officer
- property manager
- vacation rental
- house staging
you might want to bookmark this one, we’ll add it. keep looking, keep adding links and resources as we go. the beautiful part for me is the breadth of opportunity here. Doesn’t it give you that little tingle too? money is everywhere.
my current assignment search:
- airbnb property management businesses
- online education and newsletter acquisition goals
- a vending machine business because I want to start one and give it away 🙂
question everything & become boring,
codie & the opposites
the not so boring section
- ridiculous for brands that do e-commerce or retail. I think I’ll give it a try for our referral program as well.
- going forward: Peer-to-peer music sharing platform limewire relaunches as an nft marketplace 🎤
- buying instead of building…online?: we look for acquisition targets online and our favorite place to look is the flippa digital marketplace. have your digital acquisition needs covered.
Disclaimer: This is the “being an adult” section. everything mentioned above is not advice, just a recount of what I did. That said: This article is presented for informational purposes only. the opinions expressed herein are not intended to recommend any investment or provide tax advice. Nor are they an offer to sell or the solicitation of an offer to buy an interest in any current or future investment vehicle managed or sponsored by Codie Ventures, LLC or its affiliates. All material presented in this newsletter should not be considered as investment advice, but for general informational purposes only. Day trading and investing involves risks, so caution should always be exercised. we cannot guarantee profit or absence of loss. you bear all cost and risk. you are solely responsible for making your own investment decisions. We recommend consulting with a registered investment adviser, stockbroker and/or financial adviser. if you choose to invest with or without seeking the advice of such advisor or entity, then the consequences resulting from your investments are your sole responsibility. By reading/sharing this newsletter or consuming our content on our other channels, you are indicating your consent and agreement to our disclaimer.