New business owner, what should my first steps be?

[KTA044]

Hi,

I have just purchased a printing and sign making business. I am a Graphic Designer and have worked in print and sign making previously, managing studios, however i have never run my own business before.

The business has been running for over 40 years and was sold due to owner retirement. I am due to take over next week and all the plans i have seem to have gone out the window and i find myself in a fluster.

The business is profitable and has survived on repeat work and word of mouth, so i will have work to jump straight into when i take over.

Im just worried that I'm over thinking things too much and that I'm going to overlook the simple essential stages of first purchasing a business, if anyone has any tips of advise on what my first points of action should be it would be a great help to ease my mind

many thanks

 

[Scalloway]

Do you have a solicitor and accountant?

 

[Mr D]

Why have your plans gone out of the window?

 

[KTA044]

Yes i have a solicitor and accountant, i have insurance and everything set up ready to go legally (i think).

In regards to my plans going out the window. I originally planed to run the business myself and only employing the existing print operator. However, on reflection and taking advice, I will be employing another member of staff for sales.

Most of my plans so far have been focused on myself, marketing, SEO and design. I fear my brain will go back to being a designer and studio manager rather than director resulting in me overlooking basics of running the business.

 

[Mr D]

Oh good there is an existing staff member. Priceless resource for how work has been done.
Whether you want to change things, at least look at what has been done.

While its pretty general I would recommend Business for Dummies book - I have a copy myself.
Talk over with your accountant about what they want and when, if the business is VAT registered then you will need to submit paperwork. Payroll will need doing, may want to farm that out to accountant (or other company).

There's at least one trade show at the NEC Birmingham used by a number of sign makers, may be worth checking out either to see what others are doing or get details of suppliers to investigate.

Running a business is scary, terrifying, annoying, lonely, long hours (for some). Its also challenging, exhilarating and while stresses can be large they can be your stresses, not imposed by a boss. And business is well worth doing.

Good luck.

 

[KTA044]

Yes the existing member of staff i hope will be able to give me some slight guidance on how things were previously done. I will be using the same accountant so i guess they will be able to give me some guidance.

Brilliant, just looked up the trade show, will definitely check this out and others alike!

I guess it's nerves and pressure to get it right. I will be purchasing business for dummies right away, being a newbie to business. Thanks for your advice

(any other book recommendations are more than welcome )

 

[LiveNetworks Ltd]

Key question is have you bought shares in a Ltd Company or have you bought the trade and assets?

The reason is from day 1 you want to get a grip on the runaway train. Your staff should be able to hold the fort and keep customers ticking over for a few days, but you want to be focusing on, what are your commitments regarding suppliers, rent, rates, etc. Do names need changing with utilities, banks, landlords, supplier accounts etc?

Make sure the seller gives you a good handover document on day one.
You want your customer lists, database, previous sales invoices.
Work in progress, outstanding orders, enquiries in progress.
Usernames and passwords for all of the online junk, domain name access, hosting accounts, the web site etc.
Make sure if it's sole trader that you've got names changed over on assets, eg domains.
Same goes for suppliers.

Always handy to get the former owner to sign off a few authority letters, that will give you something that can be sent to suppliers, banks, etc should you need to transfer names.

How easy it all is depends on how organised the previous owner is.

Let us know how you get on!

 

[Deleted member 59730]

Seeing some of the problems which crop up on this forum I'd say.....

Sort out your trademark trading name.
Get an accountant you can talk to.
Also get an overdraft facility whether you need it or not. Annual talks with a bank manager can be very useful. Don't be fobbed off by a Customer Care assistant.
Arrange trade accounts but pay your bills on time.

 

[Chris Ashdown]

Have you asked the old owner if they will work with you for the first month or two to help in the transition, most would have demanded this before buying

 

[Alan]

1) really make sure the staff are on your side
2) keep reminding yourself to take the strategic view, don't start doing stuff you should be paying others (specialists) to do
3) try and have a regular check point meetings with someone distanced from the business, that can be anyone, you may have to pay them ( e..g coach / accountant / consultant ) or they may be a friend / relative who is prepared to have lunch with you once a month who is prepared to go through an agenda / list with you.

 

[Mr D]

1) really make sure the staff are on your side
2) keep reminding yourself to take the strategic view, don't start doing stuff you should be paying others (specialists) to do
3) try and have a regular check point meetings with someone distanced from the business, that can be anyone, you may have to pay them ( e..g coach / accountant / consultant ) or they may be a friend / relative who is prepared to have lunch with you once a month who is prepared to go through an agenda / list with you.

3 is a darn good idea. Sometimes the perceived problems are not as large as you think and can be not seeing the wood for the trees.

 

[BEB_Kerry]

Terms & Conditions! Often when businesses are running so well on word of mouth these get over looked. They are an essential tool for business, they can also be your 'how to' guide when dealing with a difficult or needy customers.