Success stories of boring startups

From: gregisenberg

Many wealthy individuals achieve their fortunes through “boring” or “sweaty” businesses that are often overlooked in favor of high-tech ventures [00:00:24]. According to Nick Huber, known as “Mr. Sweaty Startup,” these opportunities can lead to significant wealth [00:00:05].

Why “Boring” Businesses?

While much attention is given to software, SaaS, and AI startups, the reality is that many genuinely wealthy people in local towns made their money through mundane but essential services [00:01:13]. These include:

• Underground utilities [00:00:26]
• Surveying companies [00:00:27]
• HVAC businesses [00:00:28]
• Real estate development [00:00:30]

To significantly increase the odds of becoming wealthy, it’s advised to pursue something “normal” or “boring” [00:02:05].

Nick Huber’s Journey into Sweaty Startups

Nick Huber exemplifies this approach, having made millions from seemingly unglamorous ventures [00:01:12].

Storage Squad

Huber started a pickup and delivery storage business called Storage Squad, catering to students who needed to store belongings over the summer [00:02:17].

• Revenue: At its peak, Storage Squad generated approximately $2.2 million in annual revenue [00:02:34].
• Profit: The business made $400,000to$500,000 per year [00:02:40].
• Marketing: The primary and almost exclusive marketing method until 2017 was sidewalk chalk, placed in high-traffic student areas like Boston and Ithaca [00:02:48]. Huber personally wrote these ads over 5,000 times [00:03:28].
• Bootstrapping: The business was bootstrapped using old, rusty vans bought on Craigslist and from repair shops for low prices ($1,500-$2,200) [00:03:44].
• Warehouse: Storage Squad operated out of a 35,000 sq ft warehouse that could hold items for over 2,000 students (5,000+ boxes) [00:04:13].
• Sale: The business was sold in 2020 for $1.75 million, with no debt [00:04:22].
• Origin: The idea originated when someone inquired about storing items in Huber’s apartment instead of leasing it, leading him to make $150 by storing their belongings [00:04:45]. The business was profitable from day one [00:05:06].

Self-Storage Facilities

Leveraging the success of Storage Squad, Huber and his partner invested in self-storage facilities [00:02:42].

• First Acquisition: In 2019, they bought a 40,000+ sq ft facility with 180+ units in Erie, Pennsylvania, at a public auction for $625,000[00:05:30].Thisneglectedpropertywasonlymaking$4,000 a month in revenue and had over a hundred abandoned units [00:05:44].
• Second Acquisition: Another facility in North Georgia was purchased for $1.5millionwhenitwasgenerating$15,600-$16,000 in monthly revenue [00:06:09].
• Growth: This North Georgia facility now generates $40,000permonthinrevenueandisvaluedat$4.5 million, representing over $2 million in increased value without complex inventions or external funding [00:06:20].

Other Successful “Sweaty” Startup Examples

Huber highlights several other sweaty startups that generate significant income:

• Lawn Care Company: Huber’s brother runs a lawn care company using bandit signs as his only marketing [00:07:32]. He gains 30-40 new customers annually in April/May, grows his company by 30% per year, and made over $100,000 last year while spending two months fishing [00:07:39].
• Mobile Detailing Business: A one-year college graduate operating “Detailed Dogs” generated $17,000inrevenueand$10,000 in profit in a single month (October 2024), making $120,000 annually [00:07:57].
• High-End Transportation: A friend and his three drivers in Atlanta provide high-end airport transportation, doing “really well” [00:08:18].
• Firewood Delivery with Onsite Racks: A service that builds firewood racks on-site (for about $100inmaterialsand1.5hoursofwork)andthendeliversseasonedfirewoodfor$800-$1,000[00:08:44].Thisallowsforaprofitof$1,000 per day or over $100 per hour, especially as a recurring subscription service [00:08:57]. It can also be an entry point for other services like lawn mowing or tree work [00:09:41].
• Local Bar TV Advertising: An individual in North Georgia charges businesses $10permonthtodisplay7-secondrotatingadsonTVsin70barsandrestaurants,netting$20,000 a month [00:10:21]. This model builds loyalty among local business owners, who enjoy seeing their ads pop up [00:11:09].
• Putting Green Installation: A higher-skilled service involving turf installation for residences, capable of generating $30,000to$200,000 per project [00:11:40].
• Tree Removal: Despite risks and the need for expensive equipment and skilled employees, this business is highly lucrative; two workers earned over $3,000 for four hours of work from one client [00:11:54].
• Christmas Light Installation: While risky due to heights, it can be very profitable, with some clients paying $3,500-$4,000 for installation for a few months [00:12:17].
• Power Washing: A low-skill, low-capital entry point for cleaning concrete, furniture, and decks [00:12:54].
• Concrete Work: Services like driveways, slabs, and patios [00:13:04].
• Bounce House Rentals [00:13:08].

The Digital “Sweaty” Startup: Night Nurses.com

A new startup idea discussed is a service for finding night nurses, inspired by the personal experience of the host [00:14:11].

• Problem: Difficulty finding a dedicated, reliable marketplace for night nurses, as existing platforms like Care.com are too broad [00:14:22].
• Solution: Create a specialized directory/service for night nurses, possibly leveraging the domain “NightNurses.com,” which was available for $13,000(or$1,100/month for 13 months) [00:15:57].
• Business Model:
  • Start as a service that vets and sources night nurses for a one-time fee (e.g., $1,000) [00:27:29].
  • Leverage AI to build the directory and generate organic traffic through blogs and content (e.g., mom advice, product reviews) [00:16:51].
  • Expand into related services like nanny recruiting or even a payroll provider, transitioning into a “fintech AI company” on the foundation of a sweaty startup [00:26:47].
• Customer Value: High-value customers (new parents) who are willing to pay for convenience at the beginning of their journey, opening doors for cross-selling other baby-related services [00:15:03].
• Marketing: Utilize physical sweaty startup tactics like handing out flyers, bandit signs, or sidewalk chalk in areas where pregnant mothers gather [00:18:20].

The Value of Premium Domains

Investing in a premium .com domain is viewed as crucial digital real estate for any business [00:20:07].

• Huber compares it to spending millions on physical real estate or hundreds of thousands on facade renovations for a storage facility [00:19:26].
• He argues that spending a few hundred dollars on a domain is a foreign concept to many, but it’s an “unbelievable investment” [00:19:56].
• The host believes that large language models (LLMs) will prioritize .com domains over .io or .co, leading to more organic leads [00:20:13].
• Even a small increase in leads (e.g., 10 extra leads a month, worth $300 each) can quickly justify the cost of a domain lease or purchase [00:20:26].
• Huber spent $450,000 on “Somewhere.com” and recouped the value within a year [00:18:54].

Boring vs. AI Startups

When comparing AI startups to traditional “boring” businesses, Huber highlights the competitive landscape [00:23:08].

• High Failure Rate: An estimated 93% of AI startups might not reach profitability [00:23:59]. Huber suggests it could be as high as 99% [00:24:06].
• Competition: AI startups often compete against highly funded, brilliant individuals from top universities [00:24:27].
• Lower Barrier: In contrast, “boring” businesses often compete against established players who may use outdated methods (e.g., fax machines) and provide poor customer service [00:24:40].
• Increased Odds of Success: Choosing to compete in a less competitive field, even for smaller gains, significantly increases the odds of success [00:25:01].
• AI as a Tool: AI is more likely to make existing business owners more money by improving efficiency and reducing labor, rather than being the sole product of a successful AI company [00:28:57]. Just as lawnmowers made lawn care companies more profitable, AI can serve as a tool for “boring” businesses [00:28:34].

Resources for Startup Ideas

Nick Huber’s website, sweatystartup.com, features a popular section with over 400 sweaty startup ideas that generally involve cleaning, moving, repairing, or similar services and can often be bootstrapped [00:29:21].

He also has a book titled “The Sweaty Startup” launching on April 29th, focused on “how to get rich doing boring things,” covering aspects from idea selection and vetting to hiring, delegation, selling, and operational growth [00:29:43].