What to Do After Buying an Existing Business

The time period after buying a business can be both exciting and stressful. Making an investment into a business is a big deal, and being prepared for what comes next is important to you and your business’s success. In this article, you can find information about some of the tasks that new business owners may want to take prior to or soon after closing.

Meet With Your Staff

As an owner of a new business, you’ll be excited for your new endeavor, but your new staff may feel differently. Employees may be nervous about potential changes, such as job security, wage changes, new job duties, or they just may be generally apprehensive about having a new boss.  Getting to know your new team and proactively communicating with them can be an encouraging and significant step in developing a relationship with your new staff members.

Notify Existing Clients & Customers

As a new business owner, you will want to let the company’s existing clients and potential customers know of the change in ownership. The type of business that you are engaged in will factor into how you may want to relay this message. The following are some of the options a business has to notify customers and existing clients of new ownership.

• Press Release
• Social Media Post
• Email
• Signage
• Grand Opening

Continuity of Business Operations

• To help with the continuity of your business operations, you may want to proactively make sure that: You have the proper licensing, registration, permits, and training for you and your staff;
• You have set up appropriate bank and checking accounts;
• Employee payroll is operational;
• The proper commercial tax accounts are in place;
• A records system has been developed;
• Customer service policies have been reviewed;
• You’ve got appropriate insurance coverage in place; and
• You have developed a clear business plan for your new company.

Make Sure You Have the Proper Insurance Coverages

Below is a non-exhaustive list of some common insurance coverages that you may want to consider for your new business:

• Commercial General Liability – Can provide coverage if your company causes property damage or bodily injury to third parties.
• Professional Liability Insurance – Typically provides protection if a client believes a mistake you made in the course of providing professional services, such as a missed deadline, caused financial loss.
• Workers’ Compensation Insurance – Can help cover medical bills and wages for employees who are injured or become ill because of work related events.  Workers’ compensation is typically legally required if your business has one or more employees.  
• Commercial Auto Insurance –  Can help pay for bodily injury or property damage to third-parties caused by you or your employees while using company vehicles, and depending on the coverages you select can also help pay for damages to your company vehicles.
• Commercial Property Insurance – Can help protect your equipment, inventory, and your furniture from certain covered losses, such as fire.
• Key Person Insurance – Is essentially a life insurance policy that the company purchases on the life of an individual whom the business heavily relies on.
• Business Interruption Insurance – Is an insurance coverage that can help to replace a portion of a business’s income in the event a covered peril occurs and causes a business to pause operations or temporarily relocate.
• Other Coverages to Consider – Depending on the details of your new business, you may want to consider  additional coverages such as inland marine, liquor liability coverage, cyber insurance, or to combine a general liability and commercial property policy to form what is known as a “Business Owners Policy” (BOP).

In order to protect the investment you have made in your new business, you should connect with a local insurance agent to discuss your options. Calling Cross Insurance or filling out this form may provide you the assistance you are searching for. 

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.