1. Introduction: Owning Is Different Than Buying
For the last few months (or maybe longer), your focus has been getting the deal done. Now, you need to shift gears—from buyer to operator. This is where the rubber meets the road.
Because here’s the truth: Buying a business is the easy part. Running one is where things get real. If you don’t step in the right way, employees will panic, customers will sense instability, and before you know it, you’re hemorrhaging cash.
But don’t worry. This guide will walk you through:
• How to handle Day 1 (without scaring the employees).
• What NOT to do in the first 90 days.
• How to build trust with employees and customers fast.
• When to make changes and when to wait.
• How to avoid common first-time-owner mistakes.
Let’s get into it.
2. Day 1: Your First Moves as the New Owner
A. The Employee Introduction: Don’t Screw This Up
Your first impression with the team matters more than anything. If they trust you, things will go smoothly. If they think you’re some clueless outsider, good luck keeping the ship afloat.
Here’s what to do:
✅ Let the seller introduce you. It makes the transition feel natural.
✅ Emphasize stability. Employees fear change. Tell them things aren’t drastically changing.
✅ Listen, don’t lecture. You don’t know the business yet. They do.
🔹 What NOT to do:
❌ Announce a bunch of changes on Day 1. (Employees will freak out.)
❌ Act like you have all the answers. (You don’t—yet.)
❌ Ignore the employees who actually run things. (They’ll make or break you.)
Example Day 1 Speech:
“Hey everyone, I’m [Your Name], and I’m excited to be here. First off, I want to acknowledge everything [Previous Owner] has built—this is an incredible business with a great team, and I want to keep that going. My goal is to learn from all of you because you’re the ones who make this place run. I’m here to support you and make sure we continue to grow. Let’s keep doing what we do best, and over time, we’ll figure out where we can improve together.”
B. Talking to Customers & Vendors
Your second priority? Making sure revenue doesn’t walk out the door.
✅ Customers: Call top clients personally. Introduce yourself, reassure them nothing drastic is changing, and ask how you can serve them better.
✅ Vendors: Do the same. If you’re dependent on specific suppliers, make sure they don’t start doubting your ability to pay.
📌 Tactic: Send an email or letter to all customers/vendors within the first week.
3. First 30 Days: Observe, Listen, Learn
A. The “Don’t Touch Anything” Phase
This is not the time to start making big changes. Instead, spend this period learning why things are the way they are.
🔹 What to do in the first month:
- Shadow employees – Learn their workflows and pain points.
- Talk to customers – Get feedback.
- Review financials daily – Understand cash flow cycles.
- Identify bottlenecks – Where are things inefficient?
🔹 What NOT to do:
❌ Fire people immediately – Even weak links need to be understood first.
❌ Change software or systems – Wait until you actually know how things work.
❌ Slash expenses blindly – You might cut something crucial.
📌 Tactic: Schedule 1:1s with key employees. Ask them:
• “What’s working well here?”
• “What frustrates you?”
• “If you were in charge, what’s one thing you’d change?”
You’ll get gold from these conversations.
4. First 90 Days: Setting the Foundation for Growth
Once you’ve got a handle on things, it’s time to make your first real moves.
A. Quick Wins: Make Smart, Easy Improvements
The goal in the first 90 days? Build momentum. Look for small improvements that boost morale and cash flow.
📌 Tactic: Identify three easy wins.
✅ Example 1: Automate a manual process that wastes employee time.
✅ Example 2: Call a customer who stopped buying and win them back.
✅ Example 3: Fix an obvious inefficiency that everyone complains about.
Quick wins show employees you’re making things better—not just changing things for the sake of it.
B. Fix Cash Flow First
If there’s one thing you need to obsess over in the first 90 days, it’s cash flow.
📌 Tactics to Improve Cash Flow:
• Collect outstanding invoices faster. Call past-due customers.
• Renegotiate vendor terms. Can you get better payment terms?
• Cut non-essential expenses. But only if you know what’s actually “non-essential.”
- Bookkeeping / Accounting: QuickBooks Online is the usual favorite; there are others too like Xero
- Payroll: Gusto is a strong and modern solution here. ADP is a classic.
C. People: Who Stays, Who Goes, Who’s Promotable
Your first 90 days will show you who’s crucial and who’s dead weight.
✅ Keep high-performers close. These people will make your life easier.
✅ Identify future leaders. Promote from within where possible.
❌ If someone is toxic or underperforming, move fast. Keeping bad employees drains everyone.
📌 Tactic: If you’re unsure about an employee, give them a clear, 30-day performance plan. If they step up, great. If not, you have your answer.
5. When to Make Big Changes
At some point, you’ll need to make bigger strategic moves—but timing is everything.
A. The 6-Month Rule
⏳ Wait at least 6 months before making major changes (unless something is an obvious emergency).
Big changes include:
- Rebranding
- Changing pricing
- Major software/system overhauls
- Shifting business model
If you rush big changes, you risk alienating employees and customers.
6. Avoiding First-Time Owner Mistakes
Here’s where new owners screw up:
❌ They change too much too fast. (Employees panic, customers leave.)
❌ They don’t control cash flow. (They run out of money.)
❌ They don’t listen to employees. (The people who actually know the business.)
❌ They micromanage everything. (You should work on the business, not in it, however, it is best that you learn how everyone does their job so you know whether something should take 1 hour vs 10 hours.)
📌 Tactic: Every Friday, ask yourself:
• “What’s working well?”
• “What’s not working?”
• “What’s one thing I can improve next week?”
Small improvements over time lead to massive gains.
7. Final Thoughts: The Goal Is Freedom, Not Another Job
Owning an SMB is a means to an end. You bought this business to build wealth and independence—not to become a stressed-out operator who works 80 hours a week.
👉 Your real job? Build a business that runs without you.
• Hire a GM.
• Document processes.
• Systematize everything.
That’s how you own a business instead of just running one.
Now, go out there and make this thing work. 🚀
