How One Guy Built a $5 Million Business from an Idea Everyone Thought Was Too Simple
Who Is Danial Ahchow?
Danial Ahchow is the founder of Service Central, an Australian startup established in . What started as a solution to help his father’s cleaning business find trustworthy contractors evolved into a multi-million-dollar platform connecting consumers with verified tradespeople.
What Is Service Central?
Service Central is a platform that matches customers with qualified, insured, and reliable tradespeople. It solves the long-standing issue of blindly hiring professionals from directories like the Yellow Pages, offering instead a curated, vetted experience for users seeking home improvement, repair, or maintenance services.
How Did the $5 Million Business Idea Start?
Ahchow came up with the idea while trying to find tradespeople for his dad’s business. Frustrated with the lack of transparency and trust in the hiring process, he envisioned a platform that verified every tradesman before connecting them to customers. The concept seemed simple—too simple for many skeptics. But Ahchow had the determination to turn it into reality.
How Did He Build It?
- Cold-called 600+ plumbers to pitch the idea.
- Spent over $4 million in IT and operations.
- Personally vetted tradespeople based on registration, qualifications, insurance, and character (the “Granny Test”).
- Developed a revenue model: $3,000 annual fee per company + per-job fees of $7.50 to $30.
- Launched aggressive radio marketing, which paid off after a lucky sponsorship break.
What Challenges Did He Face?
In the early days, it was extremely difficult to convince tradespeople to join. Many were skeptical, unwilling to pay even a modest $80 fee. It took persistence and belief in the business model to overcome the early inertia. The Global Financial Crisis ironically helped the company by making tradespeople more eager for work and open to joining the platform.
How Does Service Central Work?
The platform operates through a four-step verification process:
- Must be registered with a trade association
- Proof of qualifications
- Proof of insurance (where 75% fail)
- Pass the “Granny Test” — are they trustworthy and polite enough for your grandmother?
Customers submit job requests, and Service Central matches them with the most suitable tradespeople, based on availability, budget, and capability.
How Did He Make His First Million?
By 2007, just two years after launching, Ahchow’s 50% stake in the company was valued at over $3 million, making him a millionaire on paper. He remained frugal, buying only a house in Melbourne and a BMW Z4, focusing on reinvesting in the business.
What’s Next for Service Central?
The company has already expanded across Australia’s East Coast—from Melbourne to Brisbane—and is eyeing overseas markets like the UK and Europe. Ahchow believes that while similar services exist in the US, the opportunity to scale internationally remains massive.
Key Takeaways for Entrepreneurs
- Start simple — even obvious ideas need great execution.
- Validate aggressively — call, test, and adapt.
- Build trust into your platform — vet users, track performance, and enforce quality.
- Adapt to downturns — economic challenges can drive customer acquisition.
- Use the 80/20 rule — focus on top-performing customers and channels.
Frequently Asked Questions (FAQs)
- Who founded Service Central?
- Danial Ahchow founded the company in 2005.
- What does Service Central do?
- It connects customers with pre-vetted, reliable tradespeople across Australia.
- How does Service Central make money?
- It charges tradespeople an annual subscription fee and per-job commission.
- Is Service Central still growing?
- Yes, it’s expanding across Australia and exploring international markets.
