11 Jul Top 3 Tips for Smooth Sailing During Ownership Transitions
Buying a business for sale is a multifaceted process, but with the proper preparation and planning, the process can go in a smooth and orderly fashion. If you want to have smooth sailing during your ownership transition, then it is important to plan ahead and ask the right questions. This article outlines the three of the most important factors when it comes to implementing smooth ownership transition periods.
Tip 1-Leveraging the Experience of the Previous Owner
One of the greatest assets you potentially have at your disposal during the ownership transition period is the previous owner. If you can get the previous owner to stay on as an advisor, then this is usually a very good idea. Your business broker may be able to assist with this process. Don’t be afraid to attempt to build having the previous owner assist you as an advisor into the deal.
Even with the best preparation, there may be unexpected issues that arise once you take over the business for sale. Being able to call on the previous owner for advice, tips and overlooked information can save you not just headaches and time but potentially a great deal of money as well. Remember the previous owner is an expert on that business. Being able to call on that owner for advice is a big win!
Tip 2-Talk to Your New Employees
Just as your new business’s previous owner is a source of information so are your new employees. Quite often your new employees will have recommendations, insights and ideas that could prove useful. In the end, there is no harm in listening. For this reason, it is important to sit down with employees and truly listen to their concerns.
Make certain that they feel secure in their jobs despite the business for sale. Key team members should have regular meetings with your team. Initially, you will want to refrain from hiring too many new people, as this could lead to concerns over job security and problems with team cohesion.
Tip 3-Provide Ample Attention to Key Infrastructural Components
Whatever technology is involved you need to make it your priority to learn about that technology as soon as possible. The more technology forced your new business is the more urgent the need for you as the owner to understand it.
Anything that can cause a disruption in your business simply must be addressed as promptly as possible; this is why it is prudent to get to know your vendors. Finally, be sure to reach out to old customers with a special offer, so as to minimize any nervousness old customers may feel about the transition.
A business broker’s input can also keep your new business running smoothly after the business for sale belongs to you. Three of the savviest moves you can make are listening to your new employees, talking with vendors and past customers as soon as possible and working to keep the old business owner on as a consultant.
Copyright: Strategic Business Brokers Group