“Why I Bought a Boring Business and Why You Should NEVER Make My Mistake”

Mark Wallace

As an entrepreneur, we’re always hunting for the next big idea, the groundbreaking venture that will catapult us into the ranks of Bezos, Musk, and Zuckerberg. But what if I told you that the key to success isn’t chasing that lightning-in-a-bottle opportunity, but simply focusing on what works for you? Two years ago, I bought an affordable barbershop business for $2,000, hoping it was my ticket to financial success. Let’s just say… I’ll NEVER do it again.

Boring Business? More Like Nightmare!

When you think of a barbershop, you imagine a steady stream of clients, the constant hum of hair clippers, and a regular inflow of cash. Well, that’s what I thought, too. Reality? It was more like a slow trickle of customers and hair clippers gathering dust.

  • From the best of months, I was only making $1,000 profit.
  • During the worst of months, I was losing $500.
  • There simply weren’t enough barbers available to hire.
  • The industry had a high employee turnover, adding more pain to the process.

Looking back, the biggest issue wasn’t just the lack of profit or difficulty in hiring. This so-called ‘boring business’ was leeching away my time and focus from my marketing company, Autogrowth Academy, and not producing nearly enough in return.

Lessons Learned: The Boring Business Mirage

Turns out, buying a boring business that makes money is NOT the silver bullet for financial success. Why, you may ask?

  • It’s not just about buying a business. It’s about buying or starting the right business model that fits you.
  • It’s about creating a business model that resonates with my profit trifecta principles: High Ticket, Scaleable / Digital, and Repeatable.

I ended up selling the barbershop for the same $2,000 I bought it for, but I lost a ton of time, energy, and focus. I practically broke even financially, but the time wasted can never be recovered.

Why Boring Businesses are a BAD Idea

1. They’re Time-consuming and Energy Draining

Boring businesses, as they sound, can be incredibly time-consuming. They’re often based on outdated, labor-intensive models that require constant attention and micromanagement. They demand a significant amount of your time and energy, often to the detriment of your other pursuits. Remember, time is a non-renewable resource. The hours you pour into a mundane, low-return business could be better spent elsewhere, like scaling up your primary venture or exploring innovative, high-return opportunities.

2. Profit Margins that Don’t Justify the Investment

While these businesses may turn a profit, the question is: are the profit margins worth the investment? In my case, the barbershop made a profit in the best of months, but the margins were meager – a mere $1,000. In the worst of months, the business ran at a loss, hemorrhaging as much as $500. In essence, the profitability of such ventures is often unpredictable and hardly ever justifies the effort, risk, and capital put into them.

3. The Struggle with High Employee Turnover

Industries such as barbering, food service, and retail, often associated with the term ‘boring businesses’, are notorious for their high employee turnover rates. This leads to constant instability, with the business owner spending more time hiring and training new staff rather than focusing on strategic growth. A revolving door of employees not only eats into your profit margins but also disrupts business continuity, affecting customer satisfaction and loyalty.

4. Limited Scalability: A Major Roadblock

Scalability is key to business growth and profitability. However, boring businesses are often hampered by their physical nature, making it difficult to scale without considerable investment in infrastructure, logistics, and manpower. The model is often reliant on brick-and-mortar establishments, human labor, and geographical location. This limitation on scalability means that the growth potential of the business is inherently capped, stifling the possibility of exponential profit growth.

5. Market Saturation: Low Demand and High Competition

Boring businesses are usually common, tried-and-tested models with a high degree of market saturation. This results in two critical challenges: low demand and high competition. With plenty of similar businesses serving the same market segment, differentiating your business becomes a grueling task. Besides, customer acquisition and retention become increasingly hard, limiting your chances of significantly improving your revenue and profitability.

6. Lack of Innovation and Adaptability

In the rapidly evolving business landscape, the ability to innovate and adapt is crucial. Boring businesses are typically stuck in time, following old, traditional methods, and often lack the flexibility to pivot or adapt to changing market dynamics. This resistance to change and innovation can severely impact the longevity and resilience of the business, making it vulnerable to market fluctuations and emerging competition.

Investing in a boring business might seem like a safe bet at first glance. But, as we’ve seen, the reality can be quite different. They are fraught with pitfalls and challenges that can quickly turn your investment into a nightmare. Instead, why not focus your energy and resources on building or buying a business that aligns with your strengths, passion, and the market’s future direction? Trust me; it will be a far more rewarding journey.

The Autogrowth Academy Advantage

Instead of sinking your time, money, and energy into a low-profit, high-stress, boring business, consider investing in growing your own automated, scalable, high-ticket, and repeatable online business. How? With Autogrowth Academy’s proven system.

Our proven system focuses on:

  • Creating high-ticket items that generate significant profits per sale.
  • Building a scalable, digital business model that can grow exponentially.
  • Establishing repeatable processes to minimize your time investment.

So, think twice before buying a boring business. It might seem like an easy path to profits, but it’s fraught with pitfalls. Instead, consider investing your time and money into a business model that suits you, and watch as your profits soar.

Mark Wallace from Autogrowth Academy

About the author

I'm Mark (AKA Money With Mark) and I'm an entrepreneur that got stuck working 60+hours a week and paying myself <$50k / year. YIKES. Now, I run a 7 figure marketing company and travel 4 months every year. The content that I make helps other stuck entrepreneurs hit their first 7 figure year without posting on social media, or burning out.