Every Boring Business The Government WANTS You To Start

Business Opportunity Thesis (Government as a Demand Engine)

The government creates business opportunities through:

• Contracts (public bidding requirements)
• Regulation (requires licensed/compliant vendors)
• Tax code (incentives that subsidize certain business activity)

How to Win Government Contracts (Process + Playbook)

Case Examples

• Filterbuy (air filters)
  • Won contracts with Houston City Schools and the New York City Subway system
  • How it happened: found bids online, ensured eligibility/requirements, submitted a proposal, then won about 6 weeks later (for the Houston school district example)

Operational “System” Described

The government must:

• Post bid opportunities publicly
• Evaluate proposals using the bid rules (can’t simply pick favorites)

Consistent winners:

• Track every open opportunity
• Never miss deadlines
• Treat submissions as a repeatable process (not a lottery)

Where to Find Bids

• sam.gov (federal contracts)
• Bidnet Direct (state/local contracts; described as a government-contract “job board”)

Actionable Steps

• Set up alerts on bid sites for your industry/location
• For each bid:
  • Confirm you can meet the requirements
  • Submit a clean, compliant proposal
• Early goal: “get in the room” by landing small wins and building process credibility
• Early-stage tactic: spend ~15 minutes/day browsing to identify demand patterns and contract sizes

“Boring Business” Category: Regulation-Driven, Recurring Compliance Work

Core Logic

Some businesses exist primarily because a law requires ongoing services. If compliance requires a licensed provider, many providers won’t bother (paperwork + licensing time), which creates a barrier to entry.

Examples Given

• Fire inspection companies
• Waste removal / trash collection
• Elevator inspection firms
• Grease trap cleaning companies
• Environmental compliance contractors
• Paint booth manufacturers (adjacent angle: manufacturing equipment required to comply with air/spray rules)

Concrete Outcome Example

A Birmingham-based fire inspector:

• Got a license after taking a course/test (~4 years before the speaker’s present day)
• Now performs recurring inspections for 50+ commercial buildings, on a repeating schedule

Repeatable Playbook (Framework)

1. Find the thing nobody wants to do because it sounds boring
2. Get the required license/certification
3. Serve recurring compliance work consistently
4. Build toward larger wins (e.g., municipal contracts)

Waste Hauling as the “Best Boring Government-Funded Business” (Go-to-Market Sequencing)

Market Structure

Waste collection/disposal is described as a tens of billions industry. Cities often contract out trash collection to private haulers via public bids.

Go-to-Market Sequence (Explicit Strategy)

1. Start with commercial accounts (restaurants, offices, warehouses, construction sites)
2. Build:
   • revenue history
   • compliance readiness
   • credibility
3. Then bid for municipal contracts
   • Outcome described: a citywide contract brings a highly recurring customer, fixed route, and predictable checks

Metrics Mentioned

• Filterbuy’s waste vendor spend: >$1,000,000/year
• Waste vendor example outcome: after being paid that amount, they bought a third truck

Actionable Recommendations

• Don’t expect day-one citywide wins
• Land 2–3 commercial accounts first to establish track record before bidding municipal contracts
• Consider prerequisites (example): get your CDL and hauling permits (used as practical compliance/logistics steps)

Tax Code as a Business Subsidy (Executing the Incentives)

Note: The speaker repeatedly cautions to talk to a CPA.

S-Corp Election (Target: Reduce Payroll Taxes Once Income Is Meaningful)

Key Concept

Elect LLC taxation as an S-corp to reduce self-employment tax by splitting income into:

• Reasonable salary
• Distributions

Salary must be reasonable (IRS scrutiny risk noted).

Numerical Example

If side business makes $100,000/year:

• Sole proprietor default:
  • self-employment tax about $15,300 (before income tax)
• S-corp example:
  • $60,000 salary + $40,000 distribution
  • Payroll taxes on salary: about $9,200
  • Estimated savings: about $6,100 by avoiding ~15.3% on distributions

Thresholds / Timeline

• Accounting costs may offset savings if income is low
• Speaker suggests below ~$60,000, savings may not net well after accounting costs
• Becoming meaningful at/after ~$60,000+ side income is presented as the “when it works best” point

Action Steps

Ask your CPA:

• “Should my LLC elect to be taxed as an S-corp?”
• “What salary-to-distribution split is right for my income level?”

Bonus Depreciation / Section 179 (Target: Equipment-Heavy Businesses)

Core Logic

For equipment-heavy businesses, purchase equipment and potentially deduct a large portion in year one. The speaker claims that under current rules it can be 100% in year one (via bonus depreciation / Section 179), handled by an accountant.

Numerical Example

• Buy a $100,000 truck
• Instead of spreading deduction over 5–7 years, take a large portion in the purchase year
• This lowers taxable income and improves cash flow (“moved money from a future tax bill back into your business today”)

Where It Applies (Examples)

• Trash collection, HVAC, construction, logistics, manufacturing, and similar industries

Action Steps

• If you already own a business with equipment:
  • Ask CPA if you’re maximizing bonus depreciation
• If evaluating a new business:
  • Factor equipment write-offs into your economics from the start

Key Takeaways / “What to Do Next” (Executive Summary)

• Use public bid systems (sam.gov, Bidnet Direct) and run contract submissions like an operations funnel
• Prefer business categories with:
  • recurring regulated demand
  • licensing barriers
  • low competitive noise (“nobody glamorizes it”)
• In regulation-driven niches, follow the sequencing strategy:
  • start with commercial accounts → build credibility → bid for municipal/government contracts
• Don’t ignore tax levers:
  • S-corp election (once income is high enough to outweigh accounting)
  • bonus depreciation/Section 179 for equipment-heavy businesses
• Always validate with a CPA; the speaker emphasizes not treating taxes as the “tail that wags the dog.”

Presenters / Sources

• David (speaker; operator/owner of Filterbuy)
• References to government procurement platforms:
  • Bidnet Direct
  • sam.gov
• Mentions: CPA (professional source advised for tax decisions)
• Secondary real-world example attributed to “a guy in Birmingham” (fire inspection license + 50+ buildings), but no name provided.