California entrepreneur started toilet business with one truck; made $4.3m

Daniel Tom, a 31-year-old entrepreneur, launched Bay Area Sanitation in 2023 with just one truck and 100 portable toilets. The business has expanded significantly, operating nearly 2,000 toilets and a fleet of 12 vacuum pumper trucks across the San Francisco Bay Area. In 2024, the company generated $3.1 million in revenue, and that figure grew to $4.3 million in 2025.

Tom's company specializes in renting portable toilets and handling their maintenance, including cleaning, restocking supplies, and waste removal. Each portable toilet can hold up to 60 gallons of waste, emptied using vacuum pumper trucks.

The business became profitable within its first year, with most income now coming from long-term rentals. Customers pay recurring charges for toilets and weekly cleaning, with standard portable toilets starting at $160 a month for long-term rentals. Short-term rentals for events cost between $239 and $399 per event.

Tom's journey to becoming a business owner began during his time at San Jose State University, where he worked part-time at a portable-toilet rental company while studying to become a physical education teacher. After graduating, he worked as a sales manager at Hanson & Fitch for seven years before starting his own business. Bay Area Sanitation started with just one truck and 100 toilets, expanding to nearly 2,000 units and 12 trucks by 2025, serving short-term events and longer-term needs such as construction sites and public parks.

The entrepreneur prefers long-term rentals due to the recurring income they provide. His company has a net profit margin of around 22%, with labor being the biggest expense, accounting for about 30% of revenue. Other expenses include fuel, supplies, and truck maintenance. Starting a business of this nature requires significant upfront spending, with rentable portable toilets costing around $800, and vacuum trucks costing about $160,000.

Tom's initial investment is not disclosed, but he estimates that an average person might need roughly $250,000 to get started.

Despite being located in a tech hub, Tom believes his sanitation business is "AI-proof" and emphasizes the essential nature of the service. He takes pride in providing a service that everyone needs, with the business requiring regular hands-on work. Tom plans to reinvest most of the company's profits, with the goal of expanding Bay Area Sanitation to 5,000 portable toilets and reaching $10 million in annual revenue within the next five years.