Starting your own business can be risky and take years before turning a profit. Generally speaking, buying a business that is already successful, established and profitable at a reasonable price has its advantages. On top of immediate cash flow and avoiding the difficult start-up work, buying a business means you are also buying the existing clients, employees and vendors and have pre-existing goodwill on your side.
You are the new boss and your employees are likely to understand the business at an intimate level. During this transitional period, it is important to meet with those in managerial and supervisory positions to explain the day-to-day practices. Developing a relationship with the employees is crucial. Employees have only recently learned of this transition, and may feel concerned about sudden changes affecting their employment. An open line of communication is vital during this period. In fact, encouraging managers to meet with you weekly will build trust and will inevitably make the transition smoother.
In addition, take this time to understand the business, why it was successful and where it can continue to improve. Develop a plan of action to be enacted after the transitional period. It is ill-advised to make any drastic changes immediately. Take the first several months after the sale to learn the ropes, understand the business and develop a plan for the future growth of the company.
It’s Your Business, What’s Next?
Once you have built this trust, you have a team of individuals who not only know you, but are more open to hearing suggestions for change and improvement. You may have ideas, but so do your employees. Keep the lines of communication open; this is critical in the success of any company.
On the other hand, if you have ideas and wish to implement them without much debate, try to get your new team on-board. Getting support from your managers will undoubtedly allow for a smoother trickle-down effect throughout the entire business. The key, once you have purchased a business is to build trust and really understand what makes it tick.
Undoubtedly, the process for purchasing your new business has been long and involved much research. This time invested before the transition is time well spent. Continuing to do your research and methodically approaching the running of your new business will ensure success for everyone involved.
Whether you’re just looking into purchasing a business or you’re at the negotiation phase, it’s never too late to bring in an expert who will help you through the transition phase. Experienced business brokers, like those at Transworld Business Advsiors, will guide you through the purchase of a business and advise you in the best way to work with employees who are also going through the transitional period. As former business owners, many of our brokers at Transworld Business Advisors, have personal experience to rely on and will gladly help you feel more confident.
Call our team today, we are ready to help!