There are many benefits associated with small business acquisition, particularly for those New York entrepreneurs with an eye on innovation. However, having the right strategies in place is essential to ensure the greatest possible return on investment. Unlike acquiring large corporations, small business acquisition requires a more personalized approach.
Entrepreneur lists a few of the important steps involved in purchasing a small business. Having a cohesive plan in place regarding which team members will be retained after a purchase is crucial. This should be established early on with the seller so the process for letting go unwanted team members is as quick and painless as possible. Buyers should also be concerned with keeping the remaining staff happy, which can be accomplished by not making too many unnecessary changes (such as alterations to benefits or other employee programs).
When it comes to maintaining current customer relationships, buyers should make it a point to honor the existing products or services as well as the customer base. New team members will most likely look at the company they’ve created with pride, and failing to respect those achievements is bound to leave many employees feeling undervalued and seeking other opportunities.
Given the overall success of the small business sector in recent years, purchasing such a company can be a great away to achieve growth. According to Inc., small businesses in the U.S. employ nearly half of all private sector workers. Many are also on the front lines of new product innovation, with 43 percent of tech employment linked to less sizable businesses. When considering the numerous stories of startups rising to multi-million dollar enterprises, it’s easy to see why entrepreneurs are so invested in this growing sector.