You’ve heard the rumors that a local eatery was seeking a new owner. You waited and waited until they formally announced the sale of the business and you quickly put in an offer. It had a perfect location and great walkability so purchasing an existing business seemed to make sense. However, as you began to prepare for your grand re-opening, you realized there were some big problems.
The reality of purchasing an existing business means that you’re also purchasing a whole lot of baggage, some you won’t even know about until you start running the joint. Whether there are some less-than-friendly staff members or outdated inventory management policies, you might need to update your toolkit before you get things going.
Staff Management: Clean House or Re-Train?
If you’re purchasing an existing business and keeping on members of the existing staff, it’s possible that you’re in for a challenge. A few things first: Not every staff member will be happy adjusting to new management. Some staff members might even be a little less than accommodating. It can be a prickly situation which means you need to lay down some solid expectations and use a labor-management application to determine how to address the staff.
Worker productivity tracking is a perfect place to identify your top performers and who needs to step up their game. Tracking basic production metrics, such as sales per hour and attendance, can be frustrating without a modern solution in place. Armed with employee performance data, you can develop new procedures for deeper levels of worker accountability while minimizing the time you need to spend on staff management and performance monitoring. With this toolset in your pocket, you can focus on business operations.
Operational Efficiency Through Modern Business Tools
While staff management is incredibly important, getting a grip of the business’s operations is also useful. Let’s face it, short of retirement or health issues, there is a reason why the business you purchased was for sale. Whether it was long hours taking a toll on the former owner or it not being as lucrative as expected, there will be areas within the operations that can be streamlined, and in some cases automated.
There are opportunities here to turn things around by increasing profit margins through a reduction in operating costs, time, and inventory leakage or even through incorporating a customer loyalty program. Working smarter, not harder, is made possible by using the right set of tools. So which tools are most useful for boosting your operations?
This is where you should turn to software. Asking about the right POS system can give you a solid edge over your competition and make your transition into a new business that much smoother.
Modern POS solutions will bring you the security of cloud-based data storage, payment processing and invoicing, reporting, and the ability to manage frequent shopper programs. The right solution can help you find an existing business’s operational bottlenecks and help get you up to speed much more quickly. Once you’ve got a grip of the operational issues you need to address, you can take a deeper look at the inventory management policies the business has.
Tightening Inventory Management Controls
Gaining control over the inventory when purchasing an existing business is perhaps the most time-intensive task you will need to execute. Often, existing businesses have their own policies in place and it’s up to you to decide if you’re going to swap systems or try to adapt to an existing management style.
The first tool that you can utilize here unless the business already has a top-notch inventory management solution already in place, is to conduct a manual count of the products you have inherited. While this can be tedious, you will know exactly what you are starting out with. This will prove to be pointless if your inventory tracking is kept in notebooks or a manually updated spreadsheet. You will want the ability to scan product barcodes so that your inventory can be accurately tracked in a centralized system.
This is another way adjusting to a modern POS solution can give you an advantage when purchasing an existing business. Once you’re using an electronic inventory management system, you’ll never want to go back to pen and paper methods again. Plus, some modern systems can even automate the ordering process when you’re low on certain products which can free up a lot of your time.
Consult an Expert Before Purchasing an Existing Business
Purchasing an existing business comes with a whole host of unique challenges that many entrepreneurs have never faced. If you’re thinking of purchasing an existing business, it can’t hurt to reach out to a point of sale provider to discuss some of your concerns and the tools you need to succeed.
You need a provider with industry knowledge. This is exactly what talech can offer you throughout the acquisition process. We understand you must have flexible, easy to use POS system that can manage multiple facets of your operations while ensuring that you can focus on growth. We offer a wide range of hardware and software solutions to choose from and will assist you in choosing the right options for your needs. Contact us today to sign up for a demo and to learn more about how talech can be your expert POS partner.