In the startup world, many founders are drawn to exciting, trendy ideas like social apps, AI-driven platforms, or virtual reality products. But here’s a counterintuitive truth I’ve discovered as an investor: some of the most successful startups are built around what many might call “boring” ideas—accounting software, payroll, logistics, or database management. These overlooked markets often hold incredible potential for founders who are willing to tackle them, and they offer a path to sustainable, steady growth.
The Appeal of “Boring” Ideas
“Boring” doesn’t mean unimportant. In fact, these markets often represent essential functions that every business needs to operate smoothly. For instance, think about QuickBooks, the accounting software solution. It doesn’t sound like a “cool” product, but it addresses a universal problem and has become integral to small and medium-sized businesses. By solving fundamental needs, QuickBooks built a loyal customer base and generated predictable revenue—a dream for any startup.
Why “Boring” Markets Can Lead to Success
There are several reasons why founders should consider overlooked or “boring” problems:
High Demand, Less Competition: Many founders gravitate toward trendy ideas, leaving foundational business areas with less competition. “Boring” problems are often widely felt across industries, meaning there’s a huge market ready to embrace efficient solutions. For instance, Rippling, a payroll and HR management software, addresses a key administrative need for businesses and has grown steadily by focusing on a reliable, high-demand product.
Customer Retention and Predictable Revenue: Essential services often lead to strong customer retention. When companies rely on your product to handle critical functions like payroll, accounting, or compliance, they are far less likely to switch to competitors. This builds a recurring revenue model that grows over time. Consider ServiceTitan, a field service management software. While it’s not flashy, it provides an indispensable tool for service businesses, creating a steady revenue stream.
Opportunities for Incremental Innovation: Often, “boring” ideas don’t require groundbreaking technology. Instead, they benefit from incremental innovation—small, meaningful improvements that solve pain points. Founders can focus on enhancing usability, reliability, or customer support rather than reinventing the wheel. For instance, DocuSign started as a simple electronic signature platform but continued to innovate within its niche, becoming a dominant player in digital agreements.
Key Benefits of Tackling Overlooked Problems
Steady Growth and Longevity: Unlike consumer tech, which can be subject to fads, solutions that address foundational business needs are often sustainable over time. Accounting, payroll, compliance—these needs aren’t going away, and founders who solve them can build companies that last.
Better Profit Margins: Business-to-business (B2B) markets for essential services typically come with higher profit margins. Businesses are often willing to pay more for reliable solutions, and customer retention is higher, leading to reduced acquisition costs and improved profitability.
Scalability in the Long Run: Many “boring” products are built with scalability in mind, as they cater to essential business functions. For example, NetSuite started as an ERP (enterprise resource planning) solution for smaller companies but expanded to serve mid-sized and large enterprises due to the scalability of its offering.
How to Spot Boring Ideas with Big Potential
If you’re intrigued by the idea of a steady, “boring” business with high growth potential, here’s how to spot opportunities:
Identify Pain Points in Routine Processes: Ask around in industries that rely heavily on routine processes. What tools are outdated, what functions are tedious, and what areas have room for improvement? These can signal high-value opportunities for innovation.
Look at Necessary Services: Think about software or services that companies use daily, such as logistics management, tax compliance, or customer service operations. These areas are less glamorous but essential to most businesses.
Consider B2B Markets: While consumer markets are competitive and trend-sensitive, B2B products for foundational needs (e.g., inventory management, sales processing) often offer high potential for consistent growth and profitability.
Wrapping Up: The Case for “Boring” Ideas
Choosing to focus on “boring” ideas may not earn you immediate buzz, but it’s a path well-trodden by successful startups with strong, lasting growth. By focusing on essential needs and building solutions for enduring problems, founders can create companies that not only succeed but also thrive in the long term.
Embracing overlooked problems could be your golden ticket to startup success.