Part 4/10:
This formula underscores the foundation of successful boring businesses: high utility combined with minimal maintenance requirements and simple business models.
The Stability of Boring Businesses
Let’s consider the example of warehouse businesses, an archetype of a boring business. Utilizing a warehouse is usually relatively inexpensive for consumers due to its favorable price-per-square-foot ratios. Moreover, the operational costs are low since maintenance is minimal, requiring little upkeep once the facility is built. As society continues to produce more goods, the demand for storage will inherently remain strong. Consequently, boring businesses excel because they rely on fundamental needs rather than fleeting market trends.