The opinions expressed by (*3*) authors are their very own.
As we wrap up our series on entrepreneurship through acquisitions (ETA), let’s talk about where the rubber meets the road: starting the day-to-day running of a recent business.
We have already talked about what ETA is and how to start your personal business, in addition to where to start looking and what to listen to when buying a company. Now you can get your hands dirty and test your entrepreneurial acumen at the helm of your recent business.
The biggest hurdle in this process is ensuring a smooth transition of ownership. If done strategically, it could alleviate quite a few headaches and problems while keeping the company moving despite changes at the top.
Finally, once you’ve accomplished your transition, I’ll give you suggestions on what success in running your online business might appear to be.
Preparations for the first day
Before you get the keys to your recent kingdom, you’ll want to do a few things to prepare for your first day as the owner approaches.
- Transition of power: What are your plans for the current owner and what is going to the transition plan appear to be? It is very essential to have this predetermined and agreed – legally if vital – so that every thing is planned to run easily and without any problems.
- Communication with employees: Create a detailed communication plan with recent employees. Changes at the top make people nervous, so it’s price keeping in constant contact with them to help them through the transition.
- Time Mapping: How will you use your first 90 days to fully understand the business? The first three months of the transition might be crucial for you as the recent owner. You need to know how to make the most of this time.
The first 90 days
In my experience, the first 90 days are the hardest and most significant a part of the transition.
Before you enter the office on your first day, you must have a specific plan for that point and stick to it strictly. Otherwise, things can quickly go south.
The first thing you need to do is determine what the previous owner’s role might be during this era. In most cases, you want to transfer them inside the first 90 days. It may be a delicate balance: you want to keep them with you long enough to make the transition as smooth as possible, but not so long that they begin to get in the way of the transition.
I see the latter happening all the time. Make sure you clearly define the expectations of the previous owner about what role they need them to play during this time and how you plan to take over when the time comes.
This is also the time to start implementing your communication plan. Do this early and often to keep employees informed and confident.
Be willing to ask questions and listen
The neatest thing you can do is come in as a recent owner and listen.
If it’s sufficiently small, build relationships with each worker and stakeholder and ask them questions. Get to know them to understand what they need from the future. How can you try to make it smooth and comfortable for them?
Combine all your findings with your personal ideas to create a more formal and public transition plan. Once you’ve done this, share it with your team so everyone knows what to expect and feels their voices are heard.
After 90 days
You selected and bought this company because it was strong and had a promising future. Now it is time to leave your mark on it.
Start implementing your ideas into short- and long-term goals, ensuring your leadership teams understand them well and are up to date. Continue to research, identifying potential areas for growth and innovation, even if they are not immediately resolved. Even when implementing recent changes, you should all the time be a student of your online business and customers.
Streamline operations
Before you bought the company, you knew well which processes needed improvement and which areas needed attention.
Now is the time to highlight these areas and find ways to invest in recent technologies and infrastructure improvements that can make the vital adjustments.
Don’t forget about culture
It’s easy to get caught up in all the financial and technical details, causing the heart and soul of your online business to spin uncontrolled. Never stop focusing on your people.
Always take opportunities to reassure them that you want to build on what they helped start. Provide a positive work environment and foster open communication and collaboration. One of the best ways to do this is to hold town hall meetings where you can directly address any concerns, clearly share your vision, and establish your leadership position.
When there is a change of power in a company, people naturally worry about how it is going to affect their work or whether the things they expect and appreciate will change dramatically. It’s essential to respect certain traditions and rituals that are meaningful to your employees, even if you could do without them.
Finally, one of the best things you can do is to recognize employees early and often for their efforts. Don’t heap praise on people with insincere praise, but take time to have a good time their exemplary work, achievements and milestones.
Remember that your employees might be as concerned with studying you and your leadership skills as you are with their work ethic and productivity. Make sure you lead by example and build relationships at every opportunity.
Final thoughts
For some entrepreneurs, taking on another person’s business and making it your personal looks as if cheating. They prefer to do it their way, regardless of what happens. It’s an enterprising nature.
However, as this short series has shown, startup culture is not the only way to build a business. Sometimes the best corporations – no matter size – are the ones that were already established but needed someone with fresh ideas and a brave spirit to create something even higher.