Why Immediate Changes Are Essential in a New Acquisition:
Most conventional wisdom will tell new business owners to wait before making changes after buying a business, encouraging a “first, do no harm” approach for the first year. But in today’s competitive market, holding off can limit growth and increase risk. If you’re serious about scaling and securing your investment, making strategic changes on day one is essential. Here are the five adjustments you need to make to boost growth, increase efficiencies, and ensure long-term success.
1. Price Increases: Building a Foundation for Profitability and Growth
One of the most powerful yet often underutilized changes new business owners can make is to raise prices. While raising prices can feel risky, especially with an inherited customer base, it is critical for several reasons. First, inflation alone means that maintaining the same prices year after year will erode profits, as costs for materials, labor, and services naturally increase. If you don’t proactively adjust prices, these costs can consume profit margins, leaving you with fewer resources to reinvest in the business.
Additionally, increasing prices gives you more room to build profitability. Higher profits allow you to reinvest back into the business, whether through hiring additional staff, improving technology, or expanding marketing efforts. More profit also creates a buffer for capital expenditures (capex), allowing for essential investments in equipment upgrades, facility improvements, or product development that keep the business competitive. When executed thoughtfully and communicated transparently, price increases can be introduced without significant customer churn, especially when they’re tied to visible improvements in quality or service.
Implementing a price increase early on positions the business for sustainable profitability, allowing you to scale without compromising on the quality or breadth of services offered. For example, by justifying the increase as a necessary step to maintain and improve service levels, you can gain customer buy-in and reinforce the long-term value of your product or service.
2. Hiring New Staff: Bridging the Gap in Capacity and Expertise
When acquiring a new business, it’s common to underestimate the actual capacity and limitations of the existing team. Small businesses, in particular, often rely on staff members juggling multiple roles, doing the work of two or more people to keep operations running smoothly. This strain can lead to burnout, inefficiency, and mistakes that may cost the business more than the expense of additional hires. One of your first responsibilities as a new owner is to evaluate the team structure and determine where capacity gaps or inefficiencies lie.
Hiring new staff to fill these gaps isn’t simply about increasing headcount—it’s about aligning expertise and efficiency with growth goals. While some tasks can be delegated to virtual assistants or outsourced to contractors to free up internal resources, core roles like operations management, customer service, and sales often require dedicated, full-time staff. An overburdened team may struggle to meet customer demands or adhere to consistent quality standards, which can ultimately harm customer retention and growth.
Adding qualified staff ensures that your business has the capacity to scale sustainably and take on new clients or projects without compromising on quality. Improving employee efficiency and morale by aligning responsibilities with skillsets also positions the company to expand without overtaxing the team. By supporting the existing staff with additional hires, you foster an environment where employees can focus on high-leverage activities, which will have the greatest impact on profitability and growth.
3. Establishing and Updating Internal SOPs: Creating Consistency and Efficiency
Many small businesses operate without formal Standard Operating Procedures (SOPs), relying on unwritten rules and ad-hoc methods for getting things done. For a new owner, this lack of structure can introduce risks and inefficiencies that undermine growth potential. SOPs establish clear, repeatable processes for every core function in the business, from onboarding new clients to handling customer complaints. Without them, you’re left with inconsistent service and a higher likelihood of mistakes, all of which could impact customer satisfaction and brand reputation.
Building and implementing SOPs allows you to create a reliable framework for managing the business. While creating SOPs from scratch can be time-consuming, it’s an investment that pays off in the form of increased efficiency and reduced error rates. SOPs allow team members to operate consistently, so whether you’re in the office or not, tasks are handled uniformly. This consistency enhances quality control and improves productivity, ultimately leading to higher customer satisfaction.
It’s also worth noting that SOP updates are an internal process, meaning these changes don’t require customer-facing communications and won’t generate customer pushback. You can focus on strengthening the internal structure without worrying about external resistance. Updating SOPs provides the foundation for scalability, allowing you to replicate successful processes as you grow. A structured approach to SOPs also makes it easier to onboard new hires, as they’ll have documented processes to guide them.
4. Modernizing Technology: Enhancing Operations and Security
Most businesses, especially smaller ones, rely on outdated technology systems. Often, websites lack essential features, customer relationship management (CRM) tools are non-existent, and cybersecurity measures are minimal or outdated. Modernizing technology is a crucial step for increasing operational efficiency and ensuring data security, two factors that are especially important in an acquisition.
Investing in a robust technology infrastructure from day one can lead to significant improvements in productivity and customer experience. For example, upgrading the website to include online booking, customer portals, or e-commerce options can improve client interactions and streamline sales. Implementing a CRM system allows for centralized customer data management, making it easier to track and optimize customer relationships and follow-ups. Beyond customer-facing enhancements, project management and accounting software can streamline internal workflows, reduce human error, and provide valuable insights into business performance.
Cybersecurity, while often overlooked by small businesses, is essential. With a modernized IT infrastructure, you can protect customer data and prevent costly breaches that could damage your reputation and lead to regulatory penalties. Given that most businesses lack formal cybersecurity measures, taking this step early can set you apart from competitors and build trust with your clients.
5. Expanding Marketing Efforts: Building Visibility and Customer Base
One of the most common shortcomings in acquired businesses is the lack of a structured marketing strategy. Many small businesses rely solely on word-of-mouth or referrals and fail to leverage the potential of digital marketing or other outreach channels. Investing in a well-rounded marketing approach from day one will help you build brand visibility, attract new customers, and establish a stronger market position.
For new business owners, even establishing a single marketing channel, like social media or email marketing, can yield significant results. With a strong online presence, you can reach potential customers who may not have heard of your business through traditional referral channels. Digital marketing also allows you to target specific demographics, track engagement, and measure return on investment (ROI), giving you a clearer picture of what works and what doesn’t.
Start with one channel to establish a foundation and build expertise before expanding to additional channels. This approach allows you to test strategies, refine your messaging, and allocate resources more effectively. Marketing builds customer loyalty and keeps your business top-of-mind, which is essential for maintaining steady growth. Over time, expanding marketing efforts to include paid advertising, content marketing, or partnerships will help diversify lead generation and drive long-term growth.
Conclusion: Proactive Changes for Sustainable Growth
While conventional advice may encourage new business owners to avoid changes in their first year, a proactive approach can help you build a more profitable, resilient, and scalable business. Implementing price increases, hiring new staff, formalizing SOPs, modernizing technology, and expanding marketing efforts from day one ensures that your business is on the right track for growth. These changes create a stronger foundation, reduce risk, and allow you to unlock the true potential of your new acquisition. By prioritizing these five areas, you’re not just managing an existing business; you’re building a business that will thrive and stand out in today’s competitive landscape.
