When setting out to acquire a new business, it’s important to consider a few things before sealing the deal. Buying a business rather than creating one from scratch has a lot of benefits. It means you have a previously established list of regular customers, some brand awareness, and the initial legwork out of the way. Discover some of the most common mistakes when buying a small business.
Not Inquiring Why the Business Is for Sale
If something seems too good to be true, it typically is. Be wary of businesses that are for sale and be sure to investigate before putting an offer in. Get to know the community the business operates in and talk to customers. Find out why they love or don’t love things about the company. Ask about the company’s finances and look into its audit history. While business owners sometimes sell their companies to pursue a new venture or retire, others sell to get out of sticky situations. A sticky situation doesn’t mean a deal-breaker, but it does mean being aware of the risks and responsibilities you’re assuming.
Not Introducing Yourself To Customers and Clients
Another common mistake new small business owners make when buying a small business is not introducing themselves as the new owners to existing customers and clients. People want to know when there are big changes happening in companies they love, and new ownership is quite a shift. Give your new customers a chance to get to know you so the transition isn’t so abrupt. People are able to adjust to new things if they’re given the right space and time to process changes. Let them know what will stay the same and what will change and assure them they will remain valued customers of the business.
Forgetting To Market Like It’s a New Business
Those who take over small businesses often forget that they need to market as if the business was having a grand opening rather than market for an already well-established business. Remember that this business was sold to you for a reason, and taking it over means understanding the market and how to reach customers whose needs have changed. Send out emails, mailers, and update your postings on social media to make sure you’re reaching customers and informing them of the positive changes you plan on implementing.
