The First Steps You Should Take After You Buy a Business
It is One Thing to Buy a Business, Now You Have to Run It!
The first 90 days after your closing on a new business purchase is likely to prove to be the most critical time for your new venture. There are several factors, that if done right, will set the foundation for your future success. Just as you created a checklist during the due diligence period, it is very important that you create a post-closing plan to ensure a smooth transition.
Do Not Change Anything… Yet!
While you most likely have intimate knowledge of the business or industry in general, the day-to-day operations of your new enterprise will at first be new to you. It is understandable to jump in and make many changes that you have thought about, but in the absence of blatantly obvious deficiencies in the business model and operations, the best thing that you can do is nothing, at least at the very beginning. That’s right, no major changes at all, at least for now. Most businesses experience a downturn in the first three to six months after a new owner takes over. Do not panic, it happens. However, if you avoid any substantial changes, things should transition effectively, and then after gaining insights into your business operations and any perceived shortfalls, you can start to implement changes.
What you want to do first is to learn the business. Who are the customers? What do they want and expect? Talk to and gain an understanding of your employees and determine their future role(s) and contribution(s) to the business. Avoid drastic changes. The old saying that you’ve got to learn the business before you can make the business is applicable in this situation.
So let me repeat, get in, get familiar, and then customize your new business to your liking.
To discuss buying a business in NJ or developing a relationship with an experienced and trusted NJ Business Law Attorney, contact Fredrick P. Niemann today. He is here for you. Please email him at firstname.lastname@example.org or call him today toll-free at (855) 376-5291.
Written by Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, New Jersey Buying a Business Attorney