5 Things To Do After Buying a Business – What To Do After Buying An Existing Business

Posted on 21 September 2020

Ok so you’ve acquired a business, but now what? Running a new business can be both exciting and daunting at the same time, especially when you’re only just starting out, but it can also be a very rewarding experience once all the hard work begins to pay off.

As a new business owner you may be left wondering what to do after buying an existing business, but really there are only 5 things to do after buying a business, especially if the business has been recently acquired. After all, it can be easy to get caught up in all the work that goes into undertaking a new venture, which also means it can be easy to make mistakes.

With that said, here are five important things to do after buying a business to ensure you don’t end up mismanaging your newly acquired business.

 

1 | Create a Solid Business Plan

First things first, you need to create a solid plan for your newly acquired business. This is one of the top things most new business owners regret not doing and the reason it is critical is because it can help a business owner avoid making impulsive decisions.

Impulsive and unplanned decisions can end up costing more than what should have been spent had they had a solid plan in place. New business owners needing assistance with business plans can look into ABBA Groups’ business acquisitions service. ABBA can assist with the business acquisition process from start to finish including creating a solid business plan.

 

2 | Avoid Spending Too Much on Advertising

Spending too much on advertising is a common mistake many new business owners make. Sure, it might be tempting to spend a lot on advertising as it might help garner more customers – and some media outlets might convince you to spend more with them as well.

However, it can also be easy to spend far too much than what you have allocated for advertising as TV and radio ads can be so convincing once presented. Moreover, you might end up finding yourself earning less than what the media predicted.

There are other avenues you can use to promote awareness of your new business which can be even more effective than traditional paid advertising methods. This can be in the form of becoming more active in your local community or by fostering connections with people who can spread the word for you.

Perhaps one of the most important things every successful business needs is its own well-designed and easy-to-use website. If the business does not already have a website, or the current website just isn’t working as it should, allocating funds in your marketing budget towards a website would be a smart business decision.

 

3 | Be Aware of your Products’ Pricing

No one wants to over pay for anything, so it’s important to be aware of your products value and price it correctly. The great news is that if you bought a business that’s been doing well, all you need to do is to continue on the same successful path.

Suppliers can help you on this front as they can give you some guidelines on how to price your products, so neither you nor your customers are getting the short end of the stick.

Furthermore, keep in mind that you if you lower prices so people will buy more of your product, this will often negatively impact your profits. The smart thing to do is ensure your products are priced correctly and competitively over the longer term.

Also keep in mind how much you’re spending on purchasing stock and at what point you will break even. After all, if you’re selling lower than you should, you might be losing more money than what you’re making.

 

4 | Learn How to Prioritise

As mentioned, writing down and having a solid business plan can help you make the right decisions for your venture as well as avoid common mistakes experienced by new business owners.

However, keep in mind that even the most carefully crafted plans can go wrong. After all, you can’t possibly take into account everything that might happen, however hard you try. Therefore, problems may arise if you find yourself facing a challenge that you didn’t account for.

In this case, the best thing to do is to learn how to prioritise the most important aspects of your business. This may mean making the hard decision to only work on the problem that needs your immediate attention and put off the rest until you have managed your current crisis.

 

5 | Find a Skilled Accountant

One aspect that many new business owners neglect is the paperwork involved in running a business. They may know what they need to do and what they want to do for a successful operation, but the books are often overlooked.

In this regard, you will need to look for a skilled accountant to help you set up your business’s accounts. However, depending on just how knowledgeable you are about bookkeeping, you may opt to hire the accountant full-time.

Nevertheless, it’s still important for you to learn every aspect of your business, especially the paperwork behind it. You don’t need to be an expert but simply take some time to be aware of the how your business operates.

Consider using the services of a broker such as ABBA Group who offer an an end-to-end business acquisition service. ABBA Group can facilitate a number of related services to ensure a seamless and successful business acquisition, including preparing a business plan, advising on tax and overseeing the entire handover process.

 

Running a business can be difficult sometimes but it does not need to be daunting, even if you have never owned a business before. The key to a successful business acquisition is to create a plan, have a budget and stick to it, know how your business operates and learn how to prioritise. These things can help you become more successful in your new venture.

If you need support, the team at the ABBA Group are waiting to assist you. They have a wide network and an experienced team of professional brokers that will assist you whether you are planning to buy or sell a business.

 

 

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