#65 Why Dirty Businesses Make the BEST Acquisitions (Porta Potties Explained)

In this episode of Jackquisitions, Jack Carr breaks down the acquisition framework behind portable restroom businesses and explains why operational efficiency. Not the toilets themselves, determines profitability.From construction sites and municipalities to festivals, weddings, and large-scale events, portable restroom operators serve customers who need reliable service every week. The question is whether the business you're evaluating has the routes, systems, and customer relationships necessary to make those contracts profitable.

Porta potty businesses look simple from the outside.

Drop off a unit. Service it. Pick it up. Get paid.

But the operators making real money understand something most buyers miss: this is a route density business disguised as a sanitation company.

In this episode of Jackquisitions, Jack Carr breaks down the acquisition framework behind portable restroom businesses and explains why operational efficiency. Not the toilets themselves, determines profitability.

From construction sites and municipalities to festivals, weddings, and large-scale events, portable restroom operators serve customers who need reliable service every week. The question is whether the business you're evaluating has the routes, systems, and customer relationships necessary to make those contracts profitable.

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In this episode, Jack breaks down:

• Why route density matters more than the number of units you own
• The difference between construction rentals and event-based revenue
• Startup costs, trucks, equipment, and what buyers underestimate
• How service frequency impacts margins and profitability
• The B2B sales strategy that drives recurring construction contracts
• Collections, contractor payment terms, and protecting cash flow
• Preventative maintenance mistakes that can cripple operations
• The key metrics every buyer should evaluate before acquiring a portable restroom company

Whether you're looking at a porta potty rental company, event sanitation provider, or route-based waste services business, this episode gives you the framework to evaluate the opportunity before making an acquisition.

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Let me set the scene. I'm talking about you're at Stagecoach, you're at Bonnaroo, you're at uh I don't know any other festivals because I don't actually go to festivals, but you're at a really cool festival and you've been there for three days, and you gotta take a bathroom break. Where do you go? To the hall of Porta John's, where there's porta potties, there's plastic boxes lined up for miles. It feels like, well, that's a business. Uh that's what we're talking about today. We're talking about renting plastic portable toilets. Um, not because this product is overly exciting, but because the need is constant. Construction crews need it, road crews need it, outdoor events and venues need it, festivals, farm, agricultural stuff, municipality is disaster cleanup, like all need temporary restrooms, and a lot of times it's mandatory. This is one of those businesses that people look at really early on because it's the when they think of dirty businesses, they think of porta potties, but they never dig in. No pun intended. Uh, but that's also why it can work. Uh, because most people don't want to pump small plastic toilets for a living, they don't want to manage the smell or the waste or the drivers or the trucks or the complaints. But customers still need service every single day. The business is super simple on paper. You drop off a unit, you pick up a unit, you service and pump a unit, and then you build a customer. The part that decides whether you make money or not at the end of the day is like many of these other businesses I've talked about, it's route density and operational efficiency mixed with really, really good marketing. If your truck is driving all over the city all day long, scattered stops, this business you're paying to work. If your routes are tight, units are rented, customers pay on time. This business can be an amazing recurring revenue business model.

Uh, and the business model is essentially kind of three different uh options or service lines. Uh, the first is construction, right? Uh, this is usually the base of the business. This is the majority or the really solid foundation of your business that keeps the recurring revenue coming. Contractors rent units for job sites. The units are usually there for months. You're paying, they're paying between 200 to 350 a month, and it's recurring and it's predictable, which is awesome because again, you can see all that and you can plan out. The second model or this, yeah, second revenue stream, I should say, not model, is going to be events. I come from an area that it was high, high, high events, high tourism area, and you see these all the time. There's weddings and festivals and concerts and fairs and outdoor corporate events, and events can be amazing streams of revenue because they're higher prices. Um, there's more units, you can even get upgraded units, and you can get um like you can do add-ons and upsells like hand washing stations and ADA units and trailered restrooms, which are gonna be way more for like these really high-end weddings where you don't want people going into plastic uh restrooms, um, holding tanks or other things like that, um weekend service, midnight service, etc. etc. Uh, but these are extremely operationally intense, right? Delivering, delivery timing matters, pickup timing matters, weekend labor, night labor, customers have a higher expectation because if like the construction guy, hey, it's a little dirty this week, it's a little dirty. If you're at a festival and all of your porta-potes are full because you didn't pump it, or the guy didn't slept through his alarm and didn't show up, and now it's day two of the festival and all the porta potties are full, like they're yelling at you to get somebody out there immediately to start pumping units because nobody can go to the bathroom at all of X, Y, or Z festival. Um, super hypothetical. Like I said, I don't go to festivals, but I would assume that can happen.

So, where do you start? You start with standard units and construction sites, like this is where the operational rhythm gets built. Um, your startup cost is gonna depend on whether you start really lean uh or you try to build uh a real business day one, like a real route. I would lean towards the second is save up, start a real route. Uh, because if you try to half-ass this, it's really gonna be difficult because you're gonna be annoyed by having to do one, two, three porta potties a you know, a week for a month straight to make a whole like less than a thousand dollars. So, like your startup costs can be like standard portable toilets gonna be eight hundred dollars. It's not expensive, that's not the business, like it's not even, in my opinion, an asset. Um, but you can do buy some nights bigger ones, you know, nicer ones, but I'm just going with the base here for the constructions, those are gonna be eight, seven, eight hundred bucks. Um, the bigger expense though is the truck, right? Because you need some way to be able to service those units. And by service, I mean pump. That's a service truck with a vacuum setup, and that's easily gonna run you 75 to 100,000. Uh, you can go a little maybe find one that's a little bit cheaper, but what you're gonna run into is you're gonna run into this recurring issue of maintenance and breakdowns. And this is an industry where you can't really have that because again, if you need to be service getting paid on services, then you need to service it. Um so, but on top of that, you're also gonna need like yard space. And who wants to see 3,000 porta potties out there or even three porta potties or six porta potties sitting out in a field behind your HOA? They're not gonna be happy about that. So it's very difficult to find yard space, but you're also gonna need disposal access. See my septic video if you want more insight into the fun uh that you can get into with disposal. Um, you're gonna need water for cleaning out the units, you're gonna need deodorizers and chemicals, and toilet papers, and insurance, and repair, and marketing, and software, and everything that a normal business has, like working capital. So a very lean startup is gonna cost you somewhere, I'm gonna put it at 75 to 100,000. And that's lean. And that's a small setup with a few used units and uh limited routes. But like a more serious setup is you're gonna get a real truck, so you're gonna spend a little bit more on a really nice truck that you're gonna be able to actually service these units, and you're gonna push really early to try and get to a hundred units as fast as possible. And that's gonna be somewhere in like a hundred and fifty to two hundred thousand dollar range. Um, maybe even even more, I think my mat's off two hundred to two hundred and fifty thousand dollar range. So, but the revenue side is also simple, right? So, like that that's the what you're gonna need to start. It's not crazy, it's like, hey, I need plastic toilets, I need truck to pump, and probably some supplies like toilet paper and deodorizers. Um, and then somebody running the office. Um, a standard construction unit's gonna, like I said, rent for 250 to 300 per month, depending on the market, um, and usually includes weekly service, so you're gonna go out there to four times. Um and events, like I said, are gonna be higher priced daily, but you're going to have to service them more often and you're gonna have to work nights and weekends. So the money's not just in the rental fee, it's in the the relationship between the rental price, service frequency, route timing, how long it takes to get out there, fuel, disposal cost, supplies, and labor. So if one unit rents for $200, but it takes too much time to drive out there, it may be a bad customer. You might be paying to go pump poop. Literally, like you're paying somebody like to go pump poop. You're paying not that person, but you're paying the market. Um, and then another unit might rent for like $150, but it's just 100 yards away from your shop. Boom. That's a great uh stop because there's 30 other stops around that route and it's gonna be super profitable. So that's why route matters more than just like the individual toilet or the cost

of the toilet. So if I had this business, how would I market it? There's two groups there's people who need toilets now, contractors who need toilets now, which is a smaller group, and you're going to need customers who need toilets repeatedly. Mostly it's gonna be B2B. It's gonna be that second one. The first one is like, hey, you need to have a Google page for people searching port a potty rentals near me, but you're you're gonna get low volume on that. I'm not even gonna dig into it. It's a Google pro business profile. You're gonna solicit reviews, uh, simple landing page, and make sure that you're answering the phones. Uh, but again, this business is going to be a B2B construction uh service business. You're gonna go target builders and roofers and remodelers and concrete companies and landscapers and municipalities and event menus and wedding planners and farms and restoration companies and anybody who's gonna be doing big jobs, you're gonna outreach to them. And who's ever gonna outreach the best is going to get their business. You're gonna call them, you're gonna text them, you're gonna drop by, you're gonna ask who handles your portable restrooms, offer contractor pricing. If if they use you repeatedly, the pitch should be practical, right? We answer the phone, we deliver when we say we're gonna deliver, we service the unit on time, and we don't make this a problem. Cause like this as a contractor, this is your last problem you want. Like, I don't want to worry about the bathroom, man. I got a $600,000 remodel job I'm doing. Last thing I want to do is mess with the bathroom. So don't lead with we're the cheapest. Cheap customers are gonna be sometimes your worst customers, but you're gonna leave lead with the reliability, speed, and clean units. Like, hey, we have the cleanest units, we're gonna take care of them, we're gonna be there weekly to make sure they're good. And then for events, build the relationships with the wedding planners. And it's the same thing. Like, hey, they don't want to worry about them either, they just want them to be there, they just want them to work, so make sure that they're working reliable, you drop them on time, you pick them on time so the event doesn't charge the wedding planner or you extra fees. So, where do people get this wrong? The first mistake is buying a ton of units again, they're 700 bucks, like that's not a huge cost right out the gate. It obviously it extend expands as you buy more and more, but comparatively, relatively to other businesses, like if you're gonna go buy a ProPress for to do plumbing because you can't solder, you're getting into plumbing for the first time because hey, I took your job. Um, like that's three thousand dollars for a new one. You can buy a new unit, you can buy what four or five of those uh units for the same price. So the point is is like don't go buy a bunch of units before you start understanding demand. Buy a nice little bit uh that'll keep you going for a nice route, and then go out there and make a super dense route, understand how to run the business, understand geography and how to make that route really, really dense. Um, and that hey, that 45-minute job might not be a great job, even though you only have three and you need a fourth. Like, don't don't go get that one. Go knock doors, go get that muscle for B2B strong so that you can create strong roots, priced correctly, and then actually have some operational discipline. You want it to work, just make sure that you're showing up on time and doing the things you say. I know it sounds so simple, and I know in reality it's a lot harder as your trucks break down and this happens and that happens, and oh, there's traffic and that you know, but again, at the end of the day, the customer doesn't care if there's traffic if you're two hours late to dropping off the porta potty to their wedding. They don't, they're just mad. So making sure that all those things operationally happen extremely smoothly is going to be uh one of the biggest things in this business after marketing. The next mistake is going to be weak collections. When working with GCs and contractors and B2B, they're gonna try to put you on longer terms because it behooves them to go 30, 60, 90 days out. Again, the faster you can get paid, the better it is. Uh, but if you have to do net 30, you have to do net 30. Just make sure that you're focused on getting collections that people don't go over. As you're running around pumping porta potties and fighting this fire and fixing this truck and dealing with vandalism of your porta potty because some kid thought it was be funny to knock it over. Um it's collections ends up being like one of the last things you worry about, but it shouldn't be. Like, that's actually getting the money in that road that you already paid the market for. So you need to make sure that this like wonderful sanitation business doesn't become a bank for your customers. Uh, it needs to produce money for you. So, lastly, another big mistake I see people make, this is in all sanitation businesses, septic, blah blah blah blah blah, is trucks break down so frequently. Maintenance is so important. It doesn't help if you can drive a truck around, but you can't pump anything out, right? So making sure that you're on top of your maintenance, that you're doing preventative maintenance, that you pull the truck aside so that it's not working for half a day, so that you can go through and replace seals and gas kits and fix this and work on that and do its oil changes and all that stuff is so important. And then when you get to a point where you actually hire somebody to do this for you, you know, this isn't a normal driving job. This isn't a normal CDL cross-country trip. Like, this is a an excrement pumping job. But at the end of the day, like a lazy driver will destroy a relationship with a contractor so fast. So making sure that they actually show up, they they signed the log, did they actually do it? Like, did they actually clean the unit? Did they wash it down? Did they replace the toilet paper? Or did they just like look in it, sign it, and then walk out? So making sure that whoever you hire is actually doing the job that you're following up on the operational efficiency, making sure that it's working well. Sorry, I'm going really fast because uh I'm very passionate about pumping poop, apparently. Hey, it did get my face next to Tony Robbins when we shattered the top 100. Thank you all to my new listeners, by the way. Like, subscribe, share if you haven't already. Uh, we have 12 reviews on Apple. We could have 13 if you stop right now and you like, sub, review, so that uh, you know, I I'm just talking to a camera all day long. So it'd be nice, like just a little bit of validation. Appreciate it, guys. Ah, anyway, where was

I? Recap. Horta potty business, pumping, poop for a living, different type of poop than our last episodes, though, my friends. Um, it's route-based though, just like them. Like, hey, it's a simple business. The operation's not easy, but it's still simple. It's hey, you keep tight routes, you make sure you stay up on your uh service and operations. You rent these units out at a market price, don't go too cheap, uh, but that's gonna depend on how well you can run operationally and reduce costs, which will actually help you get more vendors or more clients, excuse me. Um, and then make sure you're collecting. Construction is gonna give you the base of your work, the foundation for everything else, where events, if you get your construction work down tight, um, outside of like, and this is outside of people who are only doing event porta-potty stuff. If you are in a like an extremely high-end luxury tourism market where that does the most wedding venues in the entire country, or most wedding events, I guess, uh, yeah, run a luxury one. Like that would be awesome. Uh, just understand the difference in the business. Um, but for most people, it's gonna be construction, agriculture is your base, and then do some events on the side for your high-priced opportunities, um, specialty units, the add-ons like ADA stuff, and and hand washing stations are wonderful. Extra pumps are wonderful. They can provide some additional cash flow, or at least service revenue lines, I guess, not cash flow. Um, the key metrics here are gonna be simple. You're gonna keep watch out on you know how many units you have in your field, how many units are deployed, what's the revenue per unit per month, how what's your cogs on that? Like, hey, how much am I spending to drive around to pump that every single day? Um, how tight are the roots because of that? You can culminate those numbers, put them together to find out how tight are your roots, um, how many units are damaged, how many are getting damaged in certain areas, making sure that you're not getting a ton of uh vandalism or anything crazy like that. And if I were starting, you know, I'd probably not start from scratch. I'd probably buy a business that already had routes, already had a truck, already had all this in place, just because buying to put 50 to 100 units out in the market immediately is going to be so hard rather than just finding an old operator with decent routes, repeat customers, weak marketing, weak pricing, just tired, and get in there and do what I do best, which is like, hey, we can start your marketing, we can hire a B2B guy to go knock doors and get you know uh more contractors. Um and uh that's the way I would go personally, but completely up to you. At the end of the day, AI is here, but guess what, guys? AI is not gonna do your porta potties for you, it's not going to create bathrooms where there are no bathrooms. So it's not sexy, it's not passive, but it's simple, necessary, and uh potentially very profitable. If you like what you heard, like I said, midway, like, sub, share. All my new followers and listeners, I appreciate you tuning in. Leave a review, um, and uh leave a comment. What do you guys want me to break down next? What's the beginner guide that you, a business you're looking at or you're thinking about? Um, I want to hear. Appreciate it, guys. See you next one.