One company of the same ilk I'm familiar with is a certain tree-cutting company in that area (I'm sure you know which one I'm talking about). They make fantastic money and have a virtual monopoly on the cyclical need of homeowners in the area for trimming branches of the towering trees in their yards, so that high winds will not knock them down onto their homes. Each homeowner needs to spend a few thousand dollars every 3 years or so for this service.
However, this family business has been in existence for 60+ years. I don't think that starting a new tree cutting business and going head to head with them will be nearly as profitable if at all, because you wouldn't have the same contacts and good will that they do. Contract work is often a word of mouth and referral business, not dissimilar to the legal world.
I totally agree that such small business owners can make great money. I recall from The Millionaire Next Door that many of the "millionaires" profiled in that book have the unsexiest businesses that they'd been working hard at for decades, saving wisely. I do know of an electrical contractor that worked on our house a couple of years ago has a healthy, very profitable business going on. But I think there's more than what immediately meets the eye, and just going into an unsexy business for the sake of going into an unsexy business is not a sufficient condition for financial success in one's business.
But I think there's more than what immediately meets the
eye, and just going into an unsexy business for the sake
of going into an unsexy business is not a sufficient
condition for financial success in one's business.
Warren Buffet built his fortune on top of Potato Chips, Dumpsters, and Trailer Parks.
I agree that there is "more" to this than just going into something unsexy. But a key part of business success is differentiating yourself from the competition.
If you have no competition, then you win by default. Finding unsexy jobs that need to be done (ie: Payroll) gets you customers.
Ah, yes! I know the company you're talking about. They come up regularly in neighborhood recommendations, although with the caveat that they're more expensive than most.
I think routine tree removal and trimming around here is kind of cutthroat -- which I've used to my advantage when getting bids. But, on the other hand, who would trust the lowest bidder to take care of your Prized Live Oak That Is The Centerpiece Of Your Old Palo Alto Backyard?
Luckily they lowered their rates dramatically during 2008 for obvious reasons, and I think we managed to get them to match that daily rate again in 2012 :P
However, this family business has been in existence for 60+ years. I don't think that starting a new tree cutting business and going head to head with them will be nearly as profitable if at all, because you wouldn't have the same contacts and good will that they do. Contract work is often a word of mouth and referral business, not dissimilar to the legal world.
I totally agree that such small business owners can make great money. I recall from The Millionaire Next Door that many of the "millionaires" profiled in that book have the unsexiest businesses that they'd been working hard at for decades, saving wisely. I do know of an electrical contractor that worked on our house a couple of years ago has a healthy, very profitable business going on. But I think there's more than what immediately meets the eye, and just going into an unsexy business for the sake of going into an unsexy business is not a sufficient condition for financial success in one's business.