The business YOU should buy (The SOWS method)

So earlier this year I bought a business for $0. And this business will do something like 300k this year. A bunch of people on the Internet read about this and they didn't love it. They had a lot to say about the fact that these sort of deals don't exist. So I thought, let's break this business down. What exactly is it? How can you replicate it? How do people buy businesses for $0 and make them hundreds of thousands of dollars? Well, this business was a 12 year old website. And the strategy that I use to buy this business is one that I use again and again and again that has four steps. I call it the four rules for business buy with $0 down. So the strategy is called Sals well South. And there's four simple steps to it. Here's step number one. Dale. Laundromat. Laundromat business Car washes. Car washes. What does this mean? This is a business that hasn't changed. This is a business that uses fax machines. It uses hardline phones. Yo, what's up? A business that hasn't used technology and wouldn't even know what to do with two letters like AI. These businesses are all around. The business I bought is called Approachment. This business was in existence since the early 2000s and the owner of this business was 65 years old. He hadn't changed a single thing on the website in 12 years. Years was full of stock images that basically make you unsure what the business does overall. The business says two things. It pairs offshore talent that answer responses to businesses with technology that allows businesses to respond 24, 7 almost immediately to any lead. As it turns out, if they don't respond, they don't get clients. So I bought this step one stale business and I did it from an owner because he hadn't changed much over 12 years. Hasn't changed a bit. Step two, old. The oldest restaurant, the oldest winery, oldest company. This was an old business. The owner of this business had been in multiple businesses for many years. He ran this company, Approachment. He ran a contracting company. He also had some construction company interests. The reason I like old businesses is because they have something called the Lindy effect, which basically means the longer something has been in existence, the more likely it is it will continue to be and existence. So this business has been around for 12 years, which actually means it's more reasonable that it'll be around for the next 12 years. A startup that's only been around for six months probably not going to have a very good score based on the Lindy effect. Except most people think that because businesses are old they're worthless. Well that's where you're wrong. And you can buy a business at much of a discount because most people assume that it ain't very good and it's not going to go very far. Now the company approachment I actually reached out to because I was a user of their services. I used their chat. I loved it. It increased my business's revenue ton by never once missing a response to my customers. And so I asked him, how's it going? I said to the owner, are you still interested in running this business? It seems like retirement is like on the horizon for you. What are you thinking? And he agreed. So I look for businesses that are old. If you are a startup, I'm a no. If you're a hope and dream and not profitable, I'm a no. Thank you. If you have proprietary in the word no way. All right, step three Weak. Competition, competition, competition, competition. What does this mean? I want a business that doesn't have really good competition. I would never buy an AI business right now. Why? I'm competing with OpenAI and Google and Microsoft. Who knows who else with billions and billions and billions of dollars going after them when I'm competing against my landscaping companies, my roofing companies, my car washes, my laundromats. Do you think any of the other competitors in the space are ones to be feared? The answer no. You're looking for companies that don't even use text automation. You're looking for companies that have never focused on marketing or social media. Their competition is weak and you are going to provide the antithesis to weak. You're going to build a real business on top of a boring business. Step four Simple. This is incredibly important and probably where people mess up the most. They hear words like biotechnology and they instantly think the business is worth more. They hear words like proprietary and they want to start investing. We want a stupid simple business and the reason why is because we want to be able to understand tiny little levers that we can use use to change a business. That's why any of these 150 businesses I would invest in, let me tell you a few that aren't so simple. Biotechnology? No. AI technology, probably not anything patent pendy. I'm going to be a no. You want me to invest in the next hot startup or something with the word algorithm in it. Also probably no. These are businesses that are so simple like inserting a coin into a washer or dryer. Having said washer or dryer run and then finally taking the profit out of it. Boring businesses often equal billions. Four Rules for Business Buying this is a short video because it's a short topic. You want to look for something that is stale, been around for a while, old, weak, doesn't have tough competition, and simple, easy to understand. In fact, maybe so easy your grandmother could do it.