When buying a new business, a lot of time and effort is spent searching for the right fit. Once the decision is made to pursue the deal there is even more work to do during the due diligence process. Finally, if the deal makes it all the way through to closing, it is now time to begin to run the company. To ensure an efficient transition and take over, there are some key steps that a new business owner should take. A common solution for this transition period is the creation of a strategic plan, often referred to as the 90-Day Business Plan.
Often a new business owner will have developed plans for change during the due diligence process and will be eager to dive in and implement changes immediately. However, to ensure a smooth transition, it is important to stay patient and spend time understanding as much as possible before applying a lot of changes that could disrupt the daily operations of the business and potentially create even more discomfort with the employees.
Upon taking over the new company, it is imperative to have a strategy in place with short- and long-term goals that can be accurately measured and carried out to completion. This 90-day plan is often broken down into 30-day sections to what is called a 30-60-90 Day Business plan. The first 30 days would include more introductory type tasks such as announcing the new ownership, and meeting with employees. This is also the time to gain a deeper understanding of the knowledge base of employees, systems, operations, clients and vendors. This time should be spent learning and documenting as much as possible about each area to develop a concise strategy for the coming months. The next 30 days could include a deeper dive into some areas where it has been determined certain changes would benefit the organization through knowledge previously gained. To aid in the execution of changes a list of short-term goals should be created for immediate improvements on some of the low hanging fruit. By the end of the 90 days, some key improvements can be implemented as well as the fostering of a new culture and a more long-term strategy for the business. Some key areas which should be addressed during the 90 Day process include: [Read more…]