Start a Shop Using Codie Sanchez's Boring Biz Rule

Key Takeaways

• Avoid the complexity trap by focusing on businesses that solve simple, daily problems like car washes or laundromats.
• Look for shops with at least three years of clean tax records to verify they actually make money before you sign anything.
• Use SBA 7(a) loans to fund your purchase with as little as 10 percent down if you meet the credit requirements.
• Verify the business has a current Employer Identification Number (EIN) to ensure the entity is properly registered with the IRS.

Most people think starting a business requires a brand new, earth-shaking idea that involves an app or a patent. They spend months building a complicated solution for a problem that mightn't even exist. Codie Sanchez said on X that this obsession with being clever is exactly what kills founders. "I can tell you the number one thing that kills most founders... Even when they're failing, they look for an overcomplicated solution - don't do the simple, boring stuff."

Boring businesses are shops like HVAC companies, window cleaning crews, or local car washes. These businesses don't need to explain what they do to their customers. Everyone knows they need their air conditioner fixed in July. When you buy a boring business that already works, you aren't guessing if people want the service. You're just stepping in to run the machine better than the last owner did.

1. Buy a cash flow machine instead of a dream

If you start a brand new business from scratch, your chance of failing in the first five years is high. When you buy an existing service shop, you're buying proof. A 4-person carpet cleaning shop in Indiana that has been around since 2015 has survived recessions and a pandemic. That history is worth more than a fancy pitch deck. You want to see the Schedule C or corporate tax returns for the last three years. If the owner can't show them, walk away. You can find more about why boring service businesses beat Silicon Valley models in our breakdown of service-sector grit.

2. Check the local permits and licenses first

Before you get excited about the profit margins of a local bakery or a landscaping crew, check the paperwork. Every city has different rules for who can operate. You might need a specific municipal license or a health department permit if you're handling food. You can check the SBA guide on federal and state licenses to see which ones apply to your industry. A print shop in Ohio once lost three weeks of production because they forgot to renew a basic local operating permit. Don't let that be you. (Disclosure: we may earn a commission if you sign up for business services through our links.)

3. Use the 10 percent down payment trick

You don't need a million dollars in the bank to buy a business doing a million dollars in sales. The Small Business Administration (SBA) has programs like the 7(a) loan that help people buy existing companies. If the business has good assets and you've decent credit, you can often get in with 10 percent down. This is how a solo bookkeeper I know bought a small accounting firm. She used her savings for the down payment and let the firm's monthly profits pay off the bank loan. It's a way to get business loans even with a 580 credit score if you've the right deal structure.

4. Look for the 'messy' opportunities

The best boring businesses to buy are the ones that look a little outdated. Maybe the owner doesn't have a website. Maybe they only take checks and cash. These are huge opportunities for you. By simply adding credit card processing or a basic booking link, you can often increase sales by 20 percent in the first few months. A 12-person HVAC shop that still uses paper clipboards is a goldmine for a new owner who knows how to use a basic iPad.

5. Focus on recurring needs, not one-time hits

A business that sells a wedding cake is okay, but a business that mows the same 50 lawns every twond Tuesday is better. Recurring revenue is the secret to sleeping well at night. Look for shops where the customers come back naturally. Pest control, pool cleaning, and commercial janitorial services are all great examples. These businesses are stable because people don't stop paying for trash pickup or lightbulbs just because the stock market had a bad day. Stop trying to find the next big thing and start looking for the next thing people can't live without.

Verify the seller's profit claims against their actual bank statements this week.

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📋 Disclaimer

This article is for informational purposes only and does not constitute legal, tax, financial, or professional advice. Laws and regulations change frequently, and the information presented may not reflect the most current legal developments. Always consult with a qualified professional (CPA, attorney, financial advisor) before making business decisions based on this content. MyBizNerd may receive compensation through affiliate links, but this never influences our recommendations.

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