You’ve bought a business – Time to turn it around

Completing the arduous process of finding the right business for you and then finalising the acquisition is a great feeling. But, of course, you’ll be aware that the hard work has really only just begun.

Whether you acquired it in a distressed state and it needs a total turnaround, or if the business needs an injection of modernisation and innovation, knowing how to go about restructuring your new company will be central to ensuring that your acquisition is a successful one.

Identify and cut excess spending

Before you make too much of an investment in your new company, you’ll want to take a close look at its financials, particularly its outgoings, so that you can identify which operating costs are vital to the business and which need to be cut to enable you to focus investment elsewhere.

Is a monthly outgoing a necessary expenditure that contributes to revenue? Or is it an unnecessary cost that contributes little to the quality of your product or service? Simplifying the process and framing it in such terms is a helpful way to make decisions. If you’re struggling, a restructuring specialist can be priceless in helping you identify which expenditures you can get rid of.

Charm your new clients

Hopefully, your new acquisition already has a solid customer base. One of your first priorities, then, must be to ensure that things stay that way. Primarily, even though you’re going through a restructuring, the high standards of your predecessors mustn’t be allowed to suffer. This is a surefire way to quickly lose the trust of your new clients.

Ensuring the same standard is maintained is, however, the bare minimum you should do. It is strongly advisable to pro-actively look to reinvigorate the company’s relationships with its trusted customers, particularly if its prior struggles have led to customers looking elsewhere.

Contacting customers to let them know that the business is under new ownership is one step, but to really gauge how best you can retain a loyal customer base, ask your customers what elements of the business they feel need improvement, as well as what aspects they’re happy with.

These two simple questions will give you invaluable insight into how your business is perceived and how these perceptions can be improved. This can be vital in determining the direction your turnaround takes and your idea of where you want your new business to be in future.

Harness the power of digital

Modernising your business’ digital infrastructure will be vital to turning it around in the here and now and ensuring that it is equipped to lead its sector in the future. Investing in your digital and tech processes, moreover, will be central to ensuring efficient, flawless customer service.

When you take over, perform a thorough evaluation of the company’s process, to see what needs upgrading and to enable you to cost the level of investment that will be required. You may find that the bill comes to a lot, but the long-term benefits of such an investment make it one expense that is completely worth making.

A digitally savvy business is one that is responsive to its customer’s needs, one that doesn’t fall behind the competition and one that is prepared to meet and adapt to the challenges of a constantly changing world.

Ultimately, turning round a newly acquired business will be a mixture of insight, patience and, unavoidably, some degree of investment. However, putting in the hard yards from the moment your foot is through the door will help to ensure that you reap the full rewards your new acquisition can offer further down the line.

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