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  • #1056123
    ad2405
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    does anyone have any thoughts on my staffing issue?
    My main question is, is it a good idea to keep on the current owner as a staff member?

    #1056124
    King
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    he should be offering to stay on for 4-6 weeks as part of handover? Maybe then you can assess his value….or otherwise

    #1056125
    ad2405
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    King, post: 69121 wrote:
    he should be offering to stay on for 4-6 weeks as part of handover? Maybe then you can assess his value….or otherwise

    Well we included 1 week before and 2 weeks after settlement for training. But I was going to hire the owner to work in the shop full time. So maybe I could pay him for that time and evaluate things. That way im not committing myself to keeping him on longer if it doesnt work out.

    #1056126
    4N_Man
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    Hi, big step buying a business so you are doing well not rushing it. Based on my experiences and those of people I know I’d suggest the following;

    – as another person mentioned, go by BAS statements only, don’t factor in any ‘un-disclosed’ income by the owner

    – pay for what is and has been not for ‘what could be’ – don’t get tricked into paying for potential – you will need to invest to achieve that potential so don’t pay for it up front.

    – status quo or ‘new broom’ – tempting to go in and take it easy, learn the ropes etc but you may find yourself getting stuck in the groove, or you can use the opportunity to ‘re-launch’ – re-vision and re-ignite the business – branding, uniforms, waiting areas etc. Word will get around

    – staff – old adage, staff on attitude more than aptitude, if you can. Go for staff who are on-board with you, who you have authority over.

    Good luck mate,

    Grant Dempsey
    4Networking

    #1056127
    JacquiPryor
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    ad2405, post: 69122 wrote:
    Well we included 1 week before and 2 weeks after settlement for training. But I was going to hire the owner to work in the shop full time. So maybe I could pay him for that time and evaluate things. That way im not committing myself to keeping him on longer if it doesnt work out.

    Hi! Firstly, congratulations! That’s pleasing that he accepted your counter offer, which must make you feel a bit more comfortable.

    Re hiring him ongoing – whilst he may know that particular shop/business etc, do you know if he is involved in the reasons that sales have been lost/reputation has dropped that you mentioned in previous response? If customers have taken a negative feel towards the business due to the owner, then I wouldn’t think his ‘knowledge’ would be worth keeping him on for – the bad would surely outweigh the good. There could be persons out there looking for employment that would be just as good, without any of the ‘baggage’ the current owner may bring with him.

    I would look at various employment sites (mycareer.com.au/seek.com.au and others like gumtree.com.au) and see whether you can ascertain any persons seeking this type of employment in your general area. It might not be difficult to replace him after the initial few weeks of training and change over.

    I would be concerned that the current owner may attempt remaining in control even once you are the owner, and will be set in his/her way of doing things and could become generally uncomfortable to work together if you want to implement changes. I assume you have met the current owner and would have a better feel for how they may work as an employee with you in ‘control’?

    #1056128
    ad2405
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    4N_Man, post: 69286 wrote:
    – status quo or ‘new broom’ – tempting to go in and take it easy, learn the ropes etc but you may find yourself getting stuck in the groove, or you can use the opportunity to ‘re-launch’ – re-vision and re-ignite the business – branding, uniforms, waiting areas etc. Word will get around

    – staff – old adage, staff on attitude more than aptitude, if you can. Go for staff who are on-board with you, who you have authority over.

    Thanks Grant, I like the “staff attitude more the aptitude” saying, problem is that it is a very specialised and service orientated industry. I know the sort of attitude staff I want so I will work towards that.

    And i definately indend on going into it with a ‘new broom’, i’ve got to be carefull because I have never owned a business before and it will be a HUGE learning curve for me. I am confident I have what it takes. Branding, uniforms and colour schemes are definately at the top of my agenda.

    #1056129
    ad2405
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    JacquiPryor, post: 69325 wrote:
    Hi! Firstly, congratulations! That’s pleasing that he accepted your counter offer, which must make you feel a bit more comfortable.

    Re hiring him ongoing – whilst he may know that particular shop/business etc, do you know if he is involved in the reasons that sales have been lost/reputation has dropped that you mentioned in previous response? If customers have taken a negative feel towards the business due to the owner, then I wouldn’t think his ‘knowledge’ would be worth keeping him on for – the bad would surely outweigh the good. There could be persons out there looking for employment that would be just as good, without any of the ‘baggage’ the current owner may bring with him.

    I would look at various employment sites (mycareer.com.au/seek.com.au and others like gumtree.com.au) and see whether you can ascertain any persons seeking this type of employment in your general area. It might not be difficult to replace him after the initial few weeks of training and change over.

    I would be concerned that the current owner may attempt remaining in control even once you are the owner, and will be set in his/her way of doing things and could become generally uncomfortable to work together if you want to implement changes. I assume you have met the current owner and would have a better feel for how they may work as an employee with you in ‘control’?

    Thanks Jacqui, im concerned about those same issues with the current owner. Given my lack of experience in running a business I think for a few months i need someone that knows how the “engine” runs. But before I commit to hiring him i’ll talk to him and tell him my concerns and let him tell me his concerns and go from there.

    Like i said in the previous post, it is a very specialised industry and I can’t just anyone to do it.

    #1056130
    John C.
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    I’ve witnessed a couple of small businesses where the new owner has kept the old owner on as a manager / staff member on a permanent basis, and each situation has ended badly for the new owner with the old one making life difficult and sabotaging the business (not always obvious to the new owner), so I’d encourage you to be cautious if you do keep him on, with a clear understanding of each of your respective roles (which are clear to each other and the other staff) and possibly a short-term employment contract so that it’s easy to dismiss him if things aren’t working out.

    Obviously everyone is different, and this guy could turn out to be a fantastic asset to you, but the chances of a brilliant business owner wanting to sell a business but then stay on as a full time employee with a genuine intention to keep building the business for the new owner would have to be pretty slim I’d imagine.

    I know you say the job is very specialised and so you can’t hire just anyone to do it, but I’d suggest that if you do hire the old owner, instead of getting him to do the job, task him with documenting the job and training up some other staff – that would be a much better use of his time, and would result in you being less reliant on an expensive expert in the future.

    Good luck with the new business!

    #1056131
    ad2405
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    Just thought id give an update.

    Contracts have been exchanged for the business. Ive sorted out employees.

    Im sorta in shock at the moment, the employee that I decided not to keep on has just told me that he is going to set up his own shop around the corner on the highway and it will be a competitor to me. Its a little disconcerning because he still has a week to go in the shop and what damage could he do in that week. I definatley did not see that coming. But he is going to have to set it up from scratch.

    #1056132
    bennos
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    ad2405, post: 70068 wrote:
    Just thought id give an update.

    Contracts have been exchanged for the business. Ive sorted out employees.

    Im sorta in shock at the moment, the employee that I decided not to keep on has just told me that he is going to set up his own shop around the corner on the highway and it will be a competitor to me. Its a little disconcerning because he still has a week to go in the shop and what damage could he do in that week. I definatley did not see that coming. But he is going to have to set it up from scratch.

    I feel bad for you. After going forward on a huge step of buying a business, the last thing you want is an employee putting that extra stress on top of it all.

    I hope all works out. Congrats and good luck!!

    #1056133
    Southerngirl
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    Hi

    You can either pay him out now or accept that if he was sabotaging the business all the damage has already been done before making his announcement.

    In the corporate world – if you jump ship to a competitor you are basically paid the notice period and walked out the door. Though some of the big companies will nake you work out your notice figuring all the damage would already have been done and IP belongs to the business (not the employee) so if he starts hitting up your best customers you can sue him.

    Get to your suppliers before he does stressing that it is business as usual – that your business is a proven performer and you would appreciate their continued support. Look after your blue-chip customers as well.

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