Running a Business After the Purchase |
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Running a Business After the Purchase

KDD Consulting / Uncategorized  / Running a Business After the Purchase
08 Dec 2015

Running a Business After the Purchase

Uncategorized

You have just made the purchase of your dream business.  You have done your due diligence and you are about to close or you have just recently closed.  Now you ask yourself the question:  ‘what do I do now’?  Here are some tips to help you to run your business after the purchase.

 

In the 1st 30 days

  • Make the office your own
    • Clean the office up
      • Change around furniture, etc
      • Get rid of any un-needed assets
      • Have the employees clean up their areas
    • Continue learning the business
      • Employees will be integral in this step
      • Make it a goal to speak with:
        • Customers
        • Suppliers (you will be surprised at how much information they can and will give you)
        • Employees (continue to keep this dialog open)
      • Marketing plan (this just as easily have been completed sooner as well)
        • Set up budget
        • Determine areas and marketing arenas you want to advertise in; print, social media, Pay Per Click (PPC), SEO (organic), etc
        • Set up plan
          • Details
          • Stay within budget

 

In the 1st 60 to 90 days

  • Make no changes
  • Expect a small downturn in business
    • This is to be expected
    • Do not panic
  • Begin learning the business
  • Begin to know your customers, suppliers and your employees

 

 

Employees

  • TOP PRIORITY: MEET with Employees 1st Day!
    • Set their minds at ease; after you have completed your comments and thoughts, open up to questions and answer them honestly and to the best of your ability.
  • Employees will be anxious and nervous; let them know:
    • No major changes planned
    • You are optimistic about the company’s future
    • You are eager to build the business
    • You have an open door policy
      • You will be available any time to talk with them
    • You are counting on them for their support to build the business
      • You understand that this is a transition period and because of this you will make this time as smooth as possible
    • End the meeting by asking each employee to prepare a report, due in 1 week:
      • What can be done to make them more efficient and effective at their job
      • If you were the new owner:
        • What suggestions would you have for the overall business
      • Let them know:
        • These reports are confidential
        • You will review it with them individually
      • Do not be late with these reports
        • The employees that don’t do the report or are late will most likely be problem employees

 

Seller’s Role

In most situations, the seller will stay involved for a period of time called the ‘transition period’

  • During the Transition period
    • Seller will have strong attachment to the business
    • Employees will need to take some time getting used to their new boss
    • Seller MAY become a impediment during this transition period
      • You are not required to keep him/her around
      • Use your judgement
    • Continually learn from the seller and ask questions; remember, no question is a ‘dumb’ question.
    • Remain friendly
    • HOWEVER, let it be known – it is YOUR SHOW NOW
    • In the short term:
      • Keep office as is
      • Set yourself up alongside and mirror
      • Observe:
        • Flow of communication with customers, suppliers, employees, etc

 

 

After 3 months

  • Revise the Business Plan
    • Make it realistic
    • Adhere to it
    • Prepare forecasts/budgets – use a ‘Flash Report’ Format
      • Compare to actual
      • Daily, weekly, monthly

 

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