Success doesn’t always come wrapped in glamour — sometimes, it comes with rubber gloves and vacuum trucks.
For Daniel Tom, a 31-year-old entrepreneur and founder of Bay Area Sanitation, success looks like managing nearly 2,000 portable toilets spread across construction sites, public parks, and outdoor events throughout California’s San Francisco Bay Area.
His company doesn’t just rent toilets; it maintains them. That includes weekly cleanings, restocking supplies, and pumping out as much as 60 gallons of waste per unit, using a fleet of 12 vacuum trucks.
“When I tell people what I do, the first reaction is usually disgust,” Tom admits. “But once they understand the business model and the revenue, their interest changes very quickly.”
From One Truck to Millions in Revenue
Tom launched Bay Area Sanitation in 2023 with just one truck and 100 portable toilets. The business turned profitable within its first year and has grown steadily since.
According to financial documents reviewed by CNBC Make It, the company generated $3.1 million in revenue in 2024, which jumped to $4.3 million in 2025 as the number of rentable units increased.
The business serves a wide range of clients — from short-term rentals for concerts and festivals to long-term contracts with construction firms and public facilities.
Long-term rentals start at $160 per month per unit, including weekly servicing, while short-term event rentals range between $239 and $399.
Recurring Revenue and Strong Margins
Tom says the real financial strength of the business lies in long-term rentals, which come with consistent weekly cleaning fees.
“I prioritize long-term contracts because they provide predictable, recurring income,” he explains.
That strategy has helped Bay Area Sanitation maintain a net profit margin of about 22%.
There’s also a certain irony, Tom notes, in running a waste-management business near global tech giants like Google, Apple, and Nvidia — especially at a time when many professionals fear being replaced by artificial intelligence.
“This is a low-tech, AI-resistant business,” he says. “Human waste isn’t going anywhere.”
Finding Pride in Unpopular Work
Tom’s entry into the sanitation industry began during his junior year at San Jose State University, where he was studying to become a physical education teacher. He took a part-time customer service job at a portable toilet rental company and quickly realized the industry’s potential.
“I enjoyed it so much that I decided not to pursue teaching,” he says.
After graduation, Tom spent seven years working as a sales manager at Hanson & Fitch, gaining experience before eventually starting his own company.
Beyond the profits, Tom says he takes pride in providing a service people depend on — even if it’s not glamorous.
“Everybody needs this service,” he says. “I’m proud of the work we do.”
Startup Costs and Reinvestment Strategy
Launching a porta-potty rental business requires significant upfront capital. Tom estimates that each portable toilet costs around $800, while a vacuum truck can cost approximately $160,000.
While he declined to disclose his own startup funding, he estimates that an average entrepreneur would need about $250,000 to get started.
Bay Area Sanitation currently employs 19 workers, with labor costs accounting for roughly 30% of revenue — the company’s largest expense. Other costs include fuel, vehicle maintenance, and consumable supplies such as toilet paper and disinfectants.
Tom pays himself an annual salary of around $120,000, choosing instead to reinvest most profits back into the company.
“Our focus is growth,” he says.
His long-term goal is to expand to 5,000 portable toilets and reach $10 million in annual revenue within five years. In December, the company secured a larger warehouse yard capable of accommodating nearly double its current number of trucks.
A Growing Industry With Room to Expand
The U.S. portable toilet rental industry was valued at approximately $3.3 billion in 2025, according to research firm IBISWorld, marking a 1.7% increase from the previous year.
Tom believes the Bay Area still offers plenty of growth opportunities due to frequent outdoor events and a strong construction market.
Early Mornings and Hands-On Leadership
The job isn’t for everyone.
Tom typically wakes up at 4 a.m., heading to the company yard to meet his crews before deliveries and cleanings begin. On quieter days, he handles administrative work, sales calls, and long-term planning from the office.
While he’s become accustomed to the smells and challenges of the job, he admits some situations are still hard to stomach.
“Every once in a while, you open a unit and just know someone made a terrible food decision,” he jokes.
One principle Tom credits for his success is strict attention to sanitation standards. Each weekly service includes fully emptying waste tanks, applying deodorizing agents, scrubbing and disinfecting surfaces, and restocking supplies.
He also believes business owners should stay actively involved in daily operations.
“In this industry, what really sets an owner apart is how hands-on they are,” Tom says.
Posts
0 Comments