Transworld Blog

From business brokerage to mergers and acquisitions; we are the business sale specialists.

All Posts

Why Support and Training from a Previous Business Owner Puts You in A Great Place to Succeed

You're purchasing a business. Congratulations! No matter how much experience you have and what talents you bring to the table, chances are, you have a steep learning curve ahead of you. Your new business may have its own unique processes and systems. That's just part of the reason why obtaining support and training from a previous business owner can be very valuable.

Experience and Wisdom

If you had access to the counsel and advice of a subject matter expert in your new business’ field, you'd be foolish not to take advantage of tapping into that kind of intelligence. Presumably, the previous owner has been running the business for some time, making him or her the expert you need.188144335.jpg

You may have some great ideas and plans for the future of the company. Perhaps you have a vision for improving its operations and the way things are done. By carving out a period of time where the previous owner continues managing the business, as usual, you can observe how things have been done previously. This may provide added insight as to the reasons why they follow the processes they do.

During the transition period, when you have access to the previous owner, you may want to discuss your plans and ideas for the business. They may be things that have been tried in the past or the previous owner may be able to identify possible obstacles or issues that you had not considered.

Managing Customer and Vendor Relationships

Over the course of running the business, the owner has probably developed some close relationships with key customers that are critical to the business' ongoing success. If a customer has a new contact person to deal all of a sudden, it could potentially jeopardize their loyalty to your brand. To mitigate that risk, involve the previous owner in facilitating the change.

A face-to-face or telephone meeting may be in order, wherein you and the previous owner discuss with your customer the way in which the responsibility managing their account will transition. It's an opportunity for you to reassure them that they will receive the same service they've come to expect and that they remain valued by the company.

A similar special relationship may also exist with the company’s vendors. Your company may have enjoyed better discounts or preferential terms thanks to the bond the owner has formed with suppliers. Again, including the owner in a conversation with suppliers is a great way to get support and training from a previous business owner and ensure you maintain a strong relationship with the supplier so they continue to be an important partner in your company's success.

Helping Employees Through the Transition

When a company is sold, it's natural for employees to be a bit nervous. The unknown is always a source of anxiety and fear. Keeping morale up is going to be critical for maintaining the normal operation of the business. When they see you working with the former owner, it will help to reassure them that, despite the change in ownership, there will be some continuity between what they have become familiar with and what lies ahead.

The transition period after purchasing the business is a time that can be fraught with hazards that could significantly set back its operations. By making the most of the support and training from the previous owner, you'll be going a long way toward making sure that doesn't happen.

To check out a comprehensive list of Minnesota companies currently for sale, visit Transworld's businesses to buy webpage.

Related Posts

Case Study: Selling a High-End RV Dealership in an Uncertain Economy

Sales Timeline: 18 months List Price: $3.65 million The Background Lake Region RV in Ramsey, MN, is not your typical RV lot. Where you might imagine pop-up tent trailers going for $15–20K, Seth Pasch and his team specialized in high-end adventure vans, or “Class B” RVs, ranging between $100–200K.

Case Study: How Transworld Helped PWC Sell Their Business in 7 Months

  Sales Timeline: 7 Months   The Background Professional Wireless Communications. Inc. (PWC) has provided reliable and affordable two-way radio solutions in Minnesota and Iowa for 25 years. The company has a loyal and diverse clientele, from schools and hotels to casinos and stores. Pat and Paula Green, a husband-and-wife duo, started the business from scratch. With Mark, their salesperson and 20% owner, they have built a profitable and reputable enterprise. As they neared retirement, the Greens wanted to sell the company and focus on family. Mark also desired to sell, but remain employed by PWC.

Case Study: Selling a Pet-Sitting Business in Less Than 4 Months

  Sales Timeline: Less than 4 months Sale Price: $320k   The Background Located in the Twin Cities, the owner of Whiskers to Tails Petsitting had proven to be a successful entrepreneur focused on providing care for animals in the home. As a former employee, the owner took over the business in 2019 and successfully operated it through the COVID-19 pandemic.

Your Goals Are Just the Beginning

Talk to one of our Advisors today about next steps.

Talk to a Business Advisor
icon of an enevelope

E-mail address

minnesota@tworld.com

icon of a telephone

Contact us

+(888) 290-5232

icon of hands shaking

Confidential Consultation

Schedule a Meeting