5 Things to Do Right After You Acquire a Business
Have you already closed the deal to acquire that business and done all the paperwork? Congratulations! Now, what’s next?
This is one question that most people may tend to sideline, which is understandable. There is so much to do, after all.
By the time the ink dries, you are probably too overwhelmed to properly plan what you will do the moment the ownership of the business has been transferred.
Regardless of whether it is a franchise with limited options for rebuilding or not, there are some things you will not be able to change immediately.
To make this transition process easier for everyone, including your new employees, the following are some of the things you need to do the moment you take over.
What to do after buying a business
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Conduct an audit
The financial statements of the business should not be the only thing you should be going for when conducting a review.
An audit is meant to aid you in being familiar with the practices and procedures of the organization.
You will need some time to do this; it cannot be done in a day or two. Making changes without having comprehensive knowledge on how the business works is not a good idea.
Among the areas you should be looking into is the security measures put in place, in light of the organization’s data. Are the controls in place effective?
Are they within your budget? Who is able to access and handle the data? These are some of the questions you might want to ask yourself.
If the measures in place do not satisfy you, you can have them revised.
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Communicate with the employees
Most people have experienced the wave of uncertainty that comes with the ownership of the organization they work for being changed.
There is a fear of losing the job and other changes in their job responsibilities. Such fear may interfere with the workflow.
It is therefore advisable that you request a meeting with the existing staff and have a chat. Let them know of your intentions and be as transparent as you can.
This first encounter will have an impact on your future relationship with your employees.
Setting up a meeting with the managers or the authorities in the business is also advisable; remember to always create a comfortable environment to help the employees open up and engage.
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Understand the organizational culture of the business
Do not rush into changing the culture of the business. Take time to understand it. Take a back seat and try to understand why people behave in a particular manner.
Do not be hasty in disapproving the existing culture, as it has also contributed to the organization being able to be where it is currently.
For example, if you are buying a business for sale in San Diego, and you are from out-of-state, you need to respect the California working culture that currently exists in the business.
Also, after learning, you will be able to better explain why and how certain changes will improve the performance and overall success of the business.
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Plan your changes carefully
After doing an audit, talking to the staff and understanding the culture of the organization, you should now have everything you need to start formulating a plan for the entity.
Again, do not do this in a rush. Sit down and plan carefully. Implement the changes in a manner that will not interfere with the productivity of the organization.
Also, the speed at which you implement changes will depend on the status of the organization. If it is doing well, you could give it some more time.
You will only be required to make fast moves if the business is struggling.
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Be transparent about the changes
The employees and other stakeholders will, for the most part, embrace the changes if you are honest about them.
Remember that not everyone will see the changes you are planning in a positive light.
After taking your time to lay out your plan, it is now time to communicate with your people, tell them about your changes and why you think they should be implemented, and also ask them for input.
People will only be happy and welcoming to changes if they are allowed to participate through giving suggestions and ideas.
You cannot force change on people; it will not end well.
Before you focus on anything else in your new business, these are the first five things that you should take care of, and if possible, in that specific order.