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I've bought 75+ boring businesses (doing $100M+ in revenue)
I use 1 system to identify each acquisition.
The SOWS Framework:
I use 1 system to identify each acquisition.
The SOWS Framework:
Everyone knows to look for businesses that have:
• Low risk
• Profitability
• Growth potential
• Reasonable price multiple
• Simple (not easy) execution
But how do you find the businesses truly ready to 10-20x their revenue?
• Low risk
• Profitability
• Growth potential
• Reasonable price multiple
• Simple (not easy) execution
But how do you find the businesses truly ready to 10-20x their revenue?
I have a battle-tested framework.
I call it SOWS.
It focuses your target on businesses that are:
• Stale
• Old
• Weak
• Simple
Derisked by using loans/seller financing to fund the purchase.
I call it SOWS.
It focuses your target on businesses that are:
• Stale
• Old
• Weak
• Simple
Derisked by using loans/seller financing to fund the purchase.
Category 1: Stale Businesses
Biz's with that 90s feel to them.
• Ancient website
• No social media posts
• Still uses fax machine + landline
Minimal current innovation = easy cost savings (automated software) + revenue growth (modern marketing)
Biz's with that 90s feel to them.
• Ancient website
• No social media posts
• Still uses fax machine + landline
Minimal current innovation = easy cost savings (automated software) + revenue growth (modern marketing)
I took a laundromat to $5M in revenue in 2 years by:
• Running dating app ads
• Building SMS marketing for retention
• Reprogramming washers to remove duplicate cycles
Simple changes to a stale biz.
• Running dating app ads
• Building SMS marketing for retention
• Reprogramming washers to remove duplicate cycles
Simple changes to a stale biz.
Category 2: Old Businesses
A business that has been around for 50 years > a freshly-minted startup.
• Proven cashflow
• Consistent demand
• Has weathered recessions
A business that has been around for 50 years > a freshly-minted startup.
• Proven cashflow
• Consistent demand
• Has weathered recessions
Category 3: Weak Businesses
Businesses you hate employing but have no alternatives for.
Can't remember the last time I got an electrician:
• On time
• With automated billing
• Who sent follow-up texts
Instantly differentiate yourselves from the competitors.
Businesses you hate employing but have no alternatives for.
Can't remember the last time I got an electrician:
• On time
• With automated billing
• Who sent follow-up texts
Instantly differentiate yourselves from the competitors.
Category 4: Simple Businesses
Key reminder: simple ≠ easy.
You want businesses with clarity, BUT also a clear moat.
Simple businesses enable you to:
• Rapidly scale up operations
• Easily fine-tune the business model
Key reminder: simple ≠ easy.
You want businesses with clarity, BUT also a clear moat.
Simple businesses enable you to:
• Rapidly scale up operations
• Easily fine-tune the business model
I hope this framework helps you think bigger than chasing the next trend.
It's not the only way, but it is one potentially very lucrative way.
You can follow @Codie_Sanchez and RT here if you found this interesting:
It's not the only way, but it is one potentially very lucrative way.
You can follow @Codie_Sanchez and RT here if you found this interesting:
https://twitter.com/Codie_Sanchez/status/1671874184769667073
SOWS is how I know which biz to buy. But how do I buy a business, beginning to end?
I'm hosting a free, live Masterclass next week on the 10 steps I've used to buy 20+ biz's.
We only have 5k capacity tho, so get in now
↓
https://t.co/VAt7KV0Q7bunconventionalacquisitions.biz/masterclass-tw
I'm hosting a free, live Masterclass next week on the 10 steps I've used to buy 20+ biz's.
We only have 5k capacity tho, so get in now
↓
https://t.co/VAt7KV0Q7bunconventionalacquisitions.biz/masterclass-tw
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