A Simple yet Effective Framework in Buying Businesses

Most people are terrible at purchasing businesses. This article will discuss a simple framework that works.

Here is a tried-and-true framework called DOWP for answering the question "What sort of business should I purchase for profits?"

The acronym DOWP is:

  • Dull
  • Old
  • Weak
  • Plain

It's a quick and easy way to evaluate your initial deals and construct on them. Find the companies with the following:

  • Least danger
  • Economic viability
  • An affordable cost
  • Possibility of expansion
  • Efficient execution


Where you currently are, half, if not most businesses are suitable.

The facility is functional, but:

  • There are no reviews
  • It's a website from the early 2000's
  • They have zero to minimal use of social media
  • They might still be using fax machines

When you purchase, there is a ton of space for simple alteration. Moreover, you don't factor that into the purchase price.


Companies with a minimum 5-year history. Try to choose a 25-year-old restaurant over a startup run by younger generations if you want profitability. According to the Lindy Effect, something that has been around for a while is likely to stay around. Older companies can contain real treasures.


Purchase a company with little competition and think of yourself as the following

  • Timely
  • Including automatic billing
  • A person who follows up, provides aftercare, or solicits feedback

These are 3 quick fixes you can make to outperform the competition.


Have a plain business plan and do plain implementations. You're mostly in good place if you can pretty clearly interpret your first several offers to a young child.

Avoid being drawn away by bright lights when searching for your first purchase.

Remember: History + Uninteresting + New Operator = Cashflow

Keep doing what is effective, just simply improve it.