Why Are "Boring Businesses" More Successful?
Many top business gurus claim that boring businesses are usually more successful and profitable than other types of businesses. In this post, we will look at what is considered a boring business and why are boring businesses more successful. Plus, how you can apply the strategies used in these types of ventures to make your passion project more profitable too!
I've Been There! My Thoughts on Running a "Boring Business" vs. Running a Creative Business
Before we delve into how to identify a boring business and why they tend to be more profitable, I wanted to share with you my own experiences first and also, to mention that the term "boring business" is a phrase others in the business world use to refer to these types of ventures. Everybody is different and what might be classed as a boring business to one personal, might be the dream career for somebody else. One of the reasons I am so interested in this topic is because I've experienced it myself first hand. I've launched and run my own boring businesses, as well as my own creative businesses aka passion projects.
Speaking from personal experience, I can definitely say that we seem to treat the two businesses differently when running them. The way in which you might run a personal brand vs. running a corporate company, in which you work behind the scenes, can be completely different. Although some people find that one way of working is far better suited to them, it isn't until you've seen life from both sides that you can compare the two, along with their pros and cons.
The very first business I launched almost two decades ago was a corporate company, which would probably be considered a "boring business." My mindset when working on that business was completely different to running Luisa & Co and Minnirella in later years. When running my corporate business, I wasn't the face of the brand, few people knew who owned the company and although it was my first business "baby" in a way, it was first and foremost a business. Not a passion project, not a hobby, not creative, not a hobby. It was a business.
Fast forward to 2014 when I launched Luisa & Co and my Minnirella beauty line, my mindset was completely different. For one, I launched this business as a creative outlet and form of escapism from my previous corporate business. Second of all, after observing the rise of personal brands at a time when bloggers, YouTubers and other creatives were launching their brands on social media, I longed to have a personal brand and a closer connection to my audience and customers. Ultimately, my fashion and beauty brand became not only a business, but a hobby, passion, a creative outlet, a form of escapism, a way of connecting with likeminded people, a source of fun, recreation and socialising.
See the difference? The latter is considered many other things besides a business. This can be both highly beneficial and valuable for some, whereas it can spell the downfall for others, depending on the type of person you are. One of the main reasons why creative businesses don't succeed is because their founders don't treat them like an actual business. They treat them like a hobby, a passion, a leisure activity and that can prevent them from growing or becoming profitable. On the other hand, if you love what you do and can invest all of your time, energy and passion, this can result in ever-evolving growth and innovation.
With some business gurus telling you to launch a business doing what you love and others telling you that boring businesses make more money, how do you know which advice to take? Let's look at this in more detail.
What is a "Boring Business"?
A "boring business" refers to companies that operate in industries or offer services that aren't necessarily exciting or trendy but are essential and reliable. These businesses typically provide products or services that people need regularly, such as plumbing, accounting, waste management, logistics, cleaning services, or manufacturing. Unlike tech startups or creative enterprises that might garner more attention or be seen as passion-driven, boring businesses often operate behind the scenes, fulfilling basic yet critical needs for both consumers and other businesses.
What sets these businesses apart is their focus on offering solutions that keep society functioning smoothly. While they may not have the allure or glamour of high-tech or creative industries, they are incredibly resilient and dependable. Their success lies in the steady demand for their offerings, regardless of economic cycles or consumer trends.
Why Are Boring Businesses Often More Successful?
1. Consistent Demand
One of the key reasons boring businesses tend to be more successful is their reliability. Many "boring" industries provide essential services that are in demand regardless of economic fluctuations. For example, people will always need plumbing services, tax accountants, or garbage collection. These businesses can thrive because their services are indispensable, making them more resistant to downturns or market shifts.
2. Less Competition and Market Saturation
Boring businesses often face less competition than trendy or passion-based ventures. Industries like social media startups, fashion brands, or boutique food companies are frequently oversaturated, with many entrepreneurs chasing the same dream. On the other hand, fewer people aspire to start a waste management company or a pest control business, leaving these industries less crowded and with more room to grow.
3. Steady Cash Flow and Recurring Revenue
Many boring businesses benefit from recurring customers and predictable revenue streams. For instance, accounting firms have repeat clients during tax season, and cleaning services often sign long-term contracts with businesses or residential clients. This creates a reliable income flow that makes financial planning easier and minimises the risk of revenue dips, which can be common in more volatile industries.
4. Profit Margins and Scalability
In many boring businesses, the ability to maintain healthy profit margins is key. Because the services or products they offer are essential, they can charge premium rates, especially in areas where competition is low. Additionally, these businesses are often highly scalable. A plumbing business, for example, can expand by hiring more technicians, while a digital marketing agency might hit limits in how many clients they can manage without burning out staff.
5. Lower Risk of Burnout
Passion-driven businesses, while exciting, can also be draining. Entrepreneurs who turn their hobbies or creative passions into businesses often find themselves overwhelmed, especially when they must focus on aspects of running a business that don’t align with their passion (like finances, logistics, or customer service). Boring businesses, on the other hand, tend to be more straightforward, with clear tasks and objectives. The focus is less on emotional fulfilment and more on executing the necessary services to keep things running smoothly.
6. Long-Term Stability
Many boring businesses provide services that have been around for decades or even centuries. Because of their essential nature, they're less subject to disruption by trends or technological advancements. For instance, while new software may replace certain apps every few years, the need for heating repair, pest control, or warehouse services will likely remain constant. This long-term stability offers peace of mind to entrepreneurs and investors alike.
Passion vs. Profitability
While many people believe that passion is the key to success in business, the truth is that passion can sometimes cloud judgment. People who are passionate about their businesses may find it hard to let go of bad ideas, adjust their approach, or focus on profitability. In contrast, owners of boring businesses are often more pragmatic. They're more likely to approach their operations with a focus on efficiency, profitability, and growth rather than emotional fulfilment.
While passion-driven businesses can succeed if managed properly, the consistent demand, steady cash flow, and less competitive landscape of boring businesses often give them a distinct advantage. Entrepreneurs who focus on solving everyday problems, rather than chasing trends or following their personal passions, often find themselves building profitable, sustainable enterprises over time.
In summary, boring businesses succeed because they meet essential, ongoing needs that people are willing to pay for. They face less competition, experience steady revenue, and operate in a pragmatic, scalable way. This makes them a strong option for entrepreneurs who prioritise stability and long-term growth over chasing the next big trend.
How Can We Use these Strategies to Make a Non-Boring Business Equally as Successful?
While boring businesses often have inherent advantages, it's entirely possible to take the mindset and strategies that make these industries successful and apply them to passion-driven ventures. Here are tips and advice on how you can combine your passion with business success:
1. Solve Real Problems
Even if your business is passion-driven, it’s crucial to identify and address a real, tangible need in the market. Boring businesses succeed because they provide essential services that people need regularly. Apply this thinking to your passion: "What problem does your business solve?" If you can align your passion with a solution that makes people’s lives easier or better, you’ll create something people want to invest in, just like they do with boring businesses.
Example: If you’re passionate about fashion, you could focus on creating sustainable, size-inclusive clothing that addresses the issue of waste in the fashion industry and meets the needs of a more conscious consumer base.
2. Focus on Recurring Revenue
One key feature of boring businesses is that many of them rely on repeat customers or subscription-based models. Recurring revenue provides stability, predictable cash flow, and a stronger foundation for growth.
To apply this to a passion business, think about how you can build "long-term relationships" with your customers. This could mean offering subscription services, membership models, or product bundles that keep customers coming back.
Example: If you own a creative business like a handmade jewellery brand, you could offer a monthly subscription box of new designs or accessories, keeping customers engaged and generating recurring income.
3. Streamline Operations
While your passion may be in the creative or exciting aspects of your business, it’s essential to treat the behind-the-scenes operations as just as important. Boring businesses tend to succeed because they focus on "operational efficiency", often with systems in place for managing tasks like inventory, supply chains, and customer service.
To bring the same efficiency to your passion-based business, "automate or delegate" tasks where possible. Use tools like inventory management software, customer relationship management (CRM) systems, or hiring freelancers for tasks you’re less skilled at. This allows you to focus on the core of your business—your passion—while keeping operations running smoothly.
4. Be Financially Disciplined
Passion-driven businesses can sometimes suffer from a lack of financial discipline, especially if the founder is more emotionally attached to the product than its profitability. Boring businesses, on the other hand, tend to prioritise profitability from the start.
To apply this mindset, take a "pragmatic approach" to your finances. Set clear budgets, track your income and expenses, and regularly assess whether your products or services are priced appropriately. Make sure that even though you love what you’re doing, you’re also keeping a close eye on the bottom line.
Tip: Create a financial plan for growth. Determine where you’ll reinvest profits to scale your business, just like a boring business would reinvest to expand operations or hire more staff.
5. Test and Adjust, Don’t Get Stuck
While passion can be a driving force, it can also cloud your ability to see when something isn’t working. Boring businesses often thrive because they are pragmatic and willing to pivot when necessary. If a service isn’t working, they cut it; if there’s a better approach, they adopt it.
In a passion-based business, it’s important to stay open to feedback and change. Test new products, marketing strategies, or customer service improvements, and be willing to adjust if things aren’t delivering the results you need. A passion project can still be flexible and responsive to the market.
Example: If you’re running an online course based on a hobby or expertise, don’t be afraid to adjust your pricing model or even the course structure if customers aren’t engaging or purchasing as much as expected.
6. Brand for Longevity, Not Just Passion
Many boring businesses focus on building "long-term brand loyalty", ensuring their products or services are seen as staples in people’s lives. Even if you’re building a brand around your passion, you should consider how to build a brand that stands the test of time.
This could mean:
- Establishing a strong brand identity and voice.
- Building relationships with customers by providing excellent service.
- Offering quality products that reflect your passion but also meet high standards of durability and value.
A passion-based business can be just as strong as a boring business if the brand promises value and trust. Make sure your passion doesn’t overshadow the need to deliver consistent quality that people rely on.
7. Embrace Niche Markets
Many boring businesses are successful because they fill a niche, serving a specific market that may not be glamorous but is underserved and highly profitable. In your passion-driven business, find your niche—whether it’s a specific audience, a gap in the market, or a unique spin on a popular product.
Being passionate about something often means you have a deep understanding of it, which can help you tap into very specific needs that others may overlook. If you can marry your passion with a niche market, you can create something that speaks directly to a dedicated and loyal customer base.
Example: If you’re passionate about makeup, maybe your niche could be clean, hypoallergenic makeup for people with sensitive skin or rare skin conditions.
8. Don’t Overlook Boring Aspects of Your Business
One of the pitfalls of a passion-based business is that many entrepreneurs focus too much on the creative aspects while ignoring the day-to-day “boring” tasks, like customer service, accounting, or logistics. These areas are critical to business success, no matter how exciting your business seems on the surface.
Adopt the mindset of boring businesses by paying attention to the less glamorous, but equally important, parts of your operation. Keep an eye on the numbers, implement processes for efficiency, and invest in areas like customer service to ensure your business is sustainable.
9. Prioritise Customer Experience
Boring businesses often focus on excellent customer service because their offerings aren’t exciting enough to rely on novelty alone. To make your passion-driven business equally successful, prioritise your customers’ experience.
Ask yourself:
- How can you make it easy for customers to purchase your product or service?
- Are you engaging with customers to build loyalty and trust?
- What added value can you provide that sets you apart?
Great customer service, combined with your passion, will turn first-time buyers into repeat customers and brand advocates.
10. Have a Long-Term Plan
Boring businesses tend to have longevity because they often grow gradually, with clear goals and strategies in place for the future. While it’s easy to get swept up in the excitement of launching a passion-based business, it’s essential to think long-term.
Consider:
- Where do you want your business to be in 5 or 10 years?
- What will you need to do to grow sustainably?
- How will you continue innovating and staying relevant in the market?
Having a clear vision and strategic goals will help your passion-based business thrive in the long run, just like boring businesses do through steady and calculated growth.
Can Creative Businesses Ever Be as Successful as "Boring Businesses?"
While boring businesses succeed because of their practicality, passion-driven businesses can adopt many of the same strategies to thrive. Focus on solving real problems, build recurring revenue streams, streamline your operations, and stay flexible. By blending your passion with the practical mindset that drives boring businesses, you can create a company that is both fulfilling and financially successful.
Recommended Reading:
These books make excellent reading on mastering your mindset, setting solid foundations and working out what you really want from your business and how to make it happen.
