The views expressed by the business participants are their own.
As we wrap up our ETA series, let’s talk about when the rubber meets the road: getting into the day-to-day operations of your new business.
We’ve already discussed what an ETA is and how to get started on the road to owning your own business, as well as where to start looking and what to look for when buying a company. Now, you are ready to get your hands dirty and test your entrepreneurial grit running your new business.
A major hurdle in this process is ensuring a smooth transition of ownership. If done strategically, this can alleviate many headaches and problems while keeping the business moving forward despite changes at the top.
Finally, once the transition is complete, I’ll give you a guide to what success in running your business might look like.
Related: Want to Start a Business? Consider Buying One Instead – Here’s Why.
Preparing for the first day
Before you receive the keys to your new kingdom, you’ll want to do a few things to prepare yourself as your first day approaches.
- Power conversion: What are your plans with the current owner, and what will the transition plan look like? It is important that that is decided in advance and agreed upon – legally, if necessary – so everything is planned to go smoothly and without any hiccups.
- Staff communication: Create a detailed communication plan with your new employees. Big changes make people nervous, so you’ll want to stay in touch regularly to help them transition.
- Time map: How will you use your first 90 days to fully understand the business? The first three months of the transition will be crucial for you as the new owner. You need to know how to make that time as valuable as possible.
The first 90 days
In my experience, the first 90 days are the most challenging but most important part of the transition.
Before you enter the office on the first day, you should have a solid plan for this time and stick to it. Otherwise, things can go sideways quickly.
Your first order of business is to figure out what the previous owner’s role will look like this time around. Most of the time, you want to get them out in the first 90 days. It can be a delicate balancing act: You want to keep them long enough to make the transition as smooth as possible, but not so long that they start to get in the way of change.
I see the latter happening all the time. Be sure to set clear expectations with the previous owner about what you would like their role to be during this time and how you plan to take over when the time comes.
This is also the first time to use your communication system. Do so early and often to keep employees informed and reassured.
Be prepared to ask questions and listen
The best thing to do is log in as the new owner and listen.
If it’s small enough, build a relationship with each employee and stakeholder and ask them questions. Get to know them so you understand what they want to see moving forward. How can you try to make this smooth and comfortable for them?
Combine all your findings and ideas to create a formal and public change plan. Once that’s done, share it with your team so everyone knows what to expect and can hear their voices heard.
Related: What You Need to Know to Buy the Right Business and Win Your Own Empire
After 90 days
He chose and bought this business because it was strong and had a promising future. Now it’s time to leave your mark on it.
Start implementing your ideas into short-term and long-term goals, making sure your management teams clearly understand them and are there. Continue your research, identify potential areas of growth and innovation, even if they are not immediately addressed. Even if you are making new changes, you must always be a student of your business and customers.
Improve performance
Before you bought a company, you had a good idea of what processes needed to be improved and what areas needed attention.
Now, it’s time to highlight those areas and find ways to invest in new technology and infrastructure improvements that will allow you to make these necessary changes.
Don’t forget the culture
It can be easy to get used to all the financial and technical details, and you let the heart and soul of the business slip through the cracks. Don’t stop focusing on your people.
Always use opportunities to convince them that you want to build on what they helped in the first place. Ensure that the work environment is positive and encourages open communication and collaboration. One of the best ways to do this is to hold town hall meetings so you can directly address any concerns, share your opinion openly and position yourself as a leader.
When power changes in a company, people naturally worry about how it will affect their jobs or whether their expectations and values will change dramatically. Respecting certain cultures and respecting the traditions that are important to your employees, even if you could do without them, is important.
Finally, one of the best things you can do is recognize employees for their efforts early and often. Don’t praise people the wrong way, but take the time to celebrate exemplary work, achievements and milestones.
Remember, your employees will be as busy studying you and your leadership skills as you are busy with their work and productivity. Be sure to lead by example and build rapport at every opportunity.
Related: I Lead a Company Built Through Decades of Discovery. Here’s The Key To Making Them Succeed
Final thoughts
For some entrepreneurs, taking someone else’s business and making it their own feels like cheating. They choose to do it their way no matter what. That is the essence of business.
However, as this short series has shown, startup culture is not the only way to build a business. Sometimes, the best companies – regardless of size – are the ones that were built but need someone with new ideas and a brave spirit to create something better.
Source link
