Business Education

How Entrepreneurs Can Minimize Customer Anxiety When Taking Over an Established Business

Purchasing an established business can be an exciting venture, but it often comes with its own set of challenges, particularly in reassuring existing customers during the transition. Customer apprehension is a natural reaction to change, but savvy entrepreneurs can take proactive steps to maintain and even enhance customer loyalty. Fortunately, there are strategic approaches to soothe customer concerns, ensuring a smooth transition and fostering continued business growth.

7 Ways Entrepreneurs Can Easy Customer Apprehension When Buying an Existing Business

Buying an established business can be a lucrative venture for any entrepreneur, but it inherently comes with its share of customer anxieties. Here are seven ways adventurous entrepreneurs can reassure customers and help to smooth the transition:

1. Transparent Communication

Be open about changes. From the outset, communicate any changes in management, business practices, or product lines. Transparency helps in maintaining trust. Use newsletters, social media updates, or direct emails to inform customers about what’s staying the same and what might evolve.

Gain customer feedback. Implement a system for collecting customer feedback before and after the transition. Listening to concerns and suggestions can guide how you adjust the business to meet or exceed customer expectations.

2. Maintain Quality and Consistency

Preserve core values and quality. If the business was known for certain qualities or products, ensure those remain consistent. If there are going to be quality changes, explain why they are for the better.

Training for staff. If the staff is retained, provide training on any new systems or philosophies. If new staff are brought in, ensure they understand the history and culture of the business to maintain service consistency.

3. Leverage the Existing Brand Equity

Honor existing warranties and policies. Continue honoring warranties, loyalty programs, or any commitments made by the previous owner. This reassures customers that their past investments in the business are still valued.

Use the brand’s history. Share stories of the business’s history, its achievements, and how you plan to build on that legacy. This can reinforce the brand’s credibility and continuity.

4. Personal Engagement

Meet and greet. Organize meet-and-greet events where customers can meet the new owner or management team. Personal interaction can significantly reduce anxiety about the business’s future.

Community involvement. Continue or enhance the business’s involvement in local events or charities. This shows a commitment to the community, which is often a significant part of a business’s customer base.

5. Marketing and Reassurance Campaigns

Reassurance marketing. Launch marketing campaigns that focus on reassurance. Use slogans like “Same Great Service, New Energy” or “Your Trusted Brand with a Fresh Vision.”

Showcase improvements. If there are improvements or innovations planned, share these through case studies, before-and-after scenarios, or testimonials from early adopters or existing customers.

6. Offer Incentives

Promotions and guarantees. Introduce special promotions for existing customers or offer guarantees on new products or services to prove your commitment to their satisfaction.

Loyalty rewards. Enhance or introduce a loyalty program to reward customers for sticking with the business during the transition.

7. Legal and Financial Transparency

Clear legal transition. Ensure all legal aspects of the business transfer are transparent and communicated. This includes licenses, permits, and any legal notices about changes in ownership.

Financial health. If possible, share (broadly) the financial health of the business post-acquisition to reassure customers that the business is on solid ground.

Bonus Tip

Be sure to offer post-transition support. Take the time to follow up with customers to see how they feel about the changes. Use this feedback to make further adjustments if necessary. Also, ensure continued customer service excellence. Maintain or improve customer service levels. Excellent service during and after the transition can win over even the most skeptical customers.

What We’ve Learned

Minimizing customer anxiety in acquiring an established business involves a concerted effort. By focusing on these areas, entrepreneurs can not only retain but potentially expand their customer base, ensuring the business thrives under new ownership. Remember, the goal is to make customers feel like they are part of this new chapter, not just spectators without a stake in the future.

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You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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Don’t Let Sears JCPenney Ruin Your Retail Shop Dreams

May 23, 2017 No Comments

“Retail Apocalypse: Why JC Penney Will Survive; Sears Holdings Won’t,” exclaims a Motley Fool headline. ” J.C. Penney May Have No Other Choice but to Aggressively Close,” a headline in TheStreet.com predicts. “With Macy’s, Sears, Kohl’s Sliding, Can Mom and Pops Survive?” an NBC News headline asks. So, what’s really going on and why are these legacy retailers in such trouble? You can read for hours and come to different conclusions. But the underlying question is: can your retail store dreams still come true? The answer is: Yes. How to Start a Successful Retail Business The hyperbole of a “retail apocalypse” is a practice in the old journalism cliché, “If it bleeds, it leads.” Shocking headlines do get attention and these might even make you think there’s no point in starting a retail business. But, this simply isn’t the case. The problem these icons face began many, many years ago. And, with a bit of can-do attitude, you can start your own retail business. (Even if you have bad credit, you can be a retail entrepreneur.) ‘Main Street’ has now become a generic term synonymous with U.S. small business in general. But for many entrepreneurs, the prospect of joining Main Street in its more literal meaning – i.e. the primary retail street of a village or town – still holds an enormous amount of appeal as a business venture. Given the right amount of market research, business planning, and financial support, starting a retail business (and joining the more than 24 million people who earn a living this way) can offer many rewards to the right kind of entrepreneur. — U.S. Small Business Administration The trick is not to fall into a front-loaded trap. That means, taking on a lot of new debt to get it up and running. Incremental growth works every time because it greatly reduces risk. It also allows you to seriously cut down on the inevitable learning curve. Plus, starting small gives you a prime opportunity to identify trends. All of these are a huge help. You’ll come across different ways to grow and to save money in your venture, such as small business tax savings, and plenty more. You can build a thriving retail company, even if you’re the only employee. Here are some helpful tips for how to start a successful retail business: Find a solid niche. Think about the success of Etsy, Pinterest, Shopify, and other platforms. All of these have a common denominator — niche products and services. Whatever your passion is, chances are excellent you can turn a fun-loving hobby into a profitable business. Start by searching for like products or services and take note of their marketing techniques. Test the online market. When you have a solid idea of what others are doing, it’s time to step into the business yourself. The good news is, you don’t have to open an actual store in a shopping mall or in a retail strip. You can begin selling online in your spare time. Be sure to spread the word through social media. And, check out local events to test the market in your own area. Grow its sales incrementally. The one problem you really need to avoid is to allow it to grow past your ability to meet demand. That means managing expectations right from the beginning. Ask yourself how much you can handle on your own. In other words, ask yourself, “How many of these can I produce in a given timeframe?” Then, extrapolate from there to learn how to handle more and more orders. Go find your Customer. In most retail businesses, their marketing model is to wait for customers to find them and their products. Instead, identify your target customer and go to them in the beginning so that you can get early traction and sales. Be more reliant on your ability to generate sales rather than dependent on waiting for sales. Consider opening a brick-and-mortar. At some point, you might seriously consider opening a brick-and-mortar location. But this is where you need to be most cautious. Plenty of retail businesses who do well without a brick-and-mortar location open a shop only to be overwhelmed by the new operating costs. However, this doesn’t mean it isn’t an option, just be realistic about the projected revenue and expenses. Have you established a successful retail business? What tips and tricks do you use for you retail company? Please share your own thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

How to Patch-Up a Sour Business Relationship for the New Year

January 6, 2022 No Comments

Just about any type of relationship can go bad at practically any time. Business relationships are no exception to this sad phenomenon. Even Dave Ramsey says often, “The only ship that won’t sail is a partnership.” Statistics certainly prove this point true. But, it’s not just professional partnerships. Small business owners enter into many working relationships and any one of them can go bad. So, if you experienced this type of situation, there are ways to get back to doing business together, though both of you will need to make a commitment to make it work. Alternatives, Options, and Change If the relationship is irreconcilable, or it’s just not possible to do business again (because of an extraordinary circumstance like death, retirement, or the person has gone out of business), you’ll have to rely on other options, which can mean going with an alternative. But, before you jump right into another relationship, it’s usually best to try and work things out first. The common thread among all damaged relationships is the trust between both parties has been broken. Trust is the underrated lubricant for success in business, and rebuilding that trust is the first step in repairing any business relationship.–Inc.com After all, if you had a working relationship with this individual before, you both benefited from it and it makes sense to continue so neither one of you is forced to start from scratch again. However, if this isn’t feasible or even possible, make a list of alternative options and write down each one’s pros and cons. Make some preliminary contact and explore working together. You could even give one or more a trial run in order to determine how well it does or doesn’t work. How to Patch-Up a Sour Business Relationship Now, if there is a possibility that the relationship can be reconciled, there’s no real good reason not to try. Although, it will take quite a bit of commitment from both parties in order to have a viable future. Here is some effective advice for how to mend a broken business relationship: Start with introspection. Humans are keen on shifting blame away from themselves. People not only dislike making mistakes, but they also do not like being in the wrong. So, it’s up to you to take a good look at yourself first and be willing to accept any blame you deserve. Be humble but honest in your approach. Next, try to reconnect on a casual basis. If you have mutual interests, that’s a good place to start to reconnect. If necessary, take a gradual, measured approach and go slow. When the time is right, you can have a more candid discussion about what transpired but, don’t be blameful. Agree to leave the past behind for the sake of the future. Both of you will have to keep this promise in order to have any chance of working together again. Make it a point to put sensitive topics or events off-limits and focus on your future working relationship instead. Keep an open line of communication flowing. Once you agree to work together again, don’t let the same things get in the way. Stay in regular contact so that everyone’s expectations and needs are known. This will be a great way to help the relationship flourish and be beneficial to both parties. What other advice would you give entrepreneurs about patching up a sour business relationship? Please share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

These Two Words Reveal Bad Leadership Skills

September 14, 2020 No Comments

Harry Truman once said, “It is amazing what you can accomplish if you do not care who gets the credit.” Ronald Reagan echoed that sentiment. JFK famously said, “…ask not what your country can do for you — ask what you can do for your country.” Taking credit, even when legitimately earned, doesn’t sit well with others. People often take it as pompous, even narcissistic. That’s because it simply comes across that way, even if you don’t mean it at all. That’s why two simple words can give you a glimpse into someone else’s leadership style. Language Reveals a Lot about Personality The two words that serve as warning signs of bad leadership are merely pronouns — “me” and “I.” Someone who repeatedly uses “me” and “I” are subtly (perhaps overtly) expressing their worldview. That’s right, he or she is the center around which everything revolves. Leadership is one of the most important factors determining the success of a company. Poor leadership can seriously affect employee morale and even cause the company’s bottom line to plunge. Bad leadership leads to poor employee retention and demotivates the remaining employees, causing them to be much less productive than they would otherwise be. —Houston Chronicle Small Business Okay, that’s cliche, but it exposes a hard truth. We don’t like to think of ourselves as selfish, so we also don’t like to apply that label to others. Though, when the behavior is egregious, it not only seems appropriate to think of as an undesirable quality, but almost a necessity to call out. 3 Devastatingly Poor Leadership Traits While there are certainly numerous bad leadership attributes, three are among the absolute worst. They undermine the very role of a leader. So, doing any one of them (or more) will only be counterproductive. Here three hurtful leadership characteristics to avoid all the time: Micromanaging. Unsurprisingly, this makes the top of the list. Micromanagers are among the most despised people because their behavior is completely counterproductive. Insisting on control of everything means there’s really no need for anyone else. It’s so hated, this trait ranks among the highest in dissatisfaction among people in survey after survey. It shows you have no confidence in anyone else. Plus, it proclaims you’re the only competent person in the workplace. Not recognizing others. This isn’t much different from micromanaging because it stirs up just about as much resentment. It shows a lack of care and regard for others. It also says that you have little respect for the work others work so hard to produce. If you aren’t encouraging others through recognition, you’re insulting them in more than one way. Failing to share information. When you aren’t transparent and open about what’s going on or what’s expected, you’re effectively sabotaging anyone without that information. “To be unclear is to be unkind” the saying goes. It speaks volumes because keeping too much too close to the vest shows a real lack of trust. Without trust, there’s no way to have a working relationship. What other signs tip you off to a bad leader? Please share your thoughts and experiences by commenting! Others can greatly benefit from what you have to contribute. Interested in learning more about business? Then just visit Waters Business Consulting Group.