You bought a running business. Congratulations! So how have you planned to get your hands on it?
Your action plan for the initial period after you buy a running business would largely contribute to the success or failure of your business. With already lot of pressure and hundreds of ideas running on mind to grow the business, it is very easy to make mistakes in the initial phase of the business after you acquire it.
Major 7 Step To Follow After Buying a Business
To ensure a smooth transition, here are the major 7 steps you should do right to lay a strong foundation for your business.
1. Make sure to have the previous owner stay for required time:
Make the best out of the pre-decided transaction period. Prepare a comprehensive list of things you want the seller to cover like processes, USPs and flaws of the business etc. Also learn the business plan and the future strategies current owner has made.
2. Observe, ask questions and make notes:
Sharply observe daily activities of the seller, the flow of communication with customers, employees and vendors. Make notes, know every bit of the business, continually ask questions and get answers from the sellers.
3. Do not make any substantial changes:
People loathe changes, so go slow and avoid any big change that will disrupt the current business operations or make the employees or customers unhappy. You will have chance to grow your business after you know it in and out.
4. Meet Your Employees
Meet the employees let them know that they will be an integral part of your business. Take their thoughts on the current working of the business, how it can be improved to make their job more effective. Based on their feedback, formulate your business plans and strategies.
5. Make your customers aware of the new ownership:
Know your customers and review the customer service policies and the procedures. Let your customers also know that you are the new owner and that the service provided to them would be the same as earlier, or better than that. Treat them with special offers or a giveaway or something that you think your customers will appreciate.
6. Vendors shouldn’t be missed out:
The suppliers for your business are equally important. Meet up the major suppliers of your business and make contacts with the rest of them. Avoid making any long term contracts which can hinder your new strategies. Later, when you feel comfortable, look out for other suppliers to get better pricing and terms for future deals.
7. New look to your premises:
Once you have settled in make some changes in office, get the walls painted, re-arrange the setting, and get rid of unproductive assets. It will make it look bigger, new and different. This will have a psychological effect in making you believe that now it is your space.
Final Words
Work out your action plan around these seven things to get you going in the right direction. Use these this initial phase wisely and know all about the business that you should.
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You can check for the ambitions and aspirations of all key individuals involved in the business you have acquired, this will allow you to understand the expectations better.