What To Do After You Buy a Business: A Playbook for the First 90 Days

Just bought a business? Your first 90 days as an owner set the stage for your entire journey. Whether you're a first-time buyer or expanding your existing portfolio, these early months are crucial.

This guide provides practical steps, drawing on hard-earned lessons from seasoned operators, on how to successfully navigate the critical first 90 days after buying a business.

The Operational Transition: Getting Organized Quickly

If you've acquired your business through an asset purchase (most common among acquisition entrepreneur deals) the logistical transition is significant. Your first week should focus on critical administrative tasks. Note, in a stock purchase most of this doesn’t matter since the existing systems largely stay in place post-close:

• Set up new business bank accounts immediately
• Establish payroll systems and collect all required documentation from employees and contractors (W-4, I-9, EIN)
• Transfer or initiate accounting software and financial reporting processes
• Update licenses, vendor agreements, customer contracts, and essential software logins for any accounts associated with the previous business entity

Note: This does mean lines of credit and terms with vendors could be in jeopardy in asset sales!

Tackling these immediately avoids ongoing disruptions and ensures operational continuity. The last thing you want in an ownership transition is to mess up your first payroll! Mistakes are costly when you’re trying to earn the respect of your new employees.

Communication With Your New Employees

When you acquire a small business, employee uncertainty is common and to be expected. After all, they didn't initially choose to work for you, and who’s to say that you’re going to keep their livelihood (i.e. their job) safe? It is paramount that you quickly step in and build trust with your employees, establishing credibility and setting the stage for a swath of operational changes to improve the business. Without employee respect, employees could just leave outright, but even if they don’t, you’ll have a tough time getting buy-in for all those amazing changes you thought of during the diligence process.

Here’s how to approach employee communication:

• Schedule a short, transparent meeting within your first few days
• Clearly communicate your intentions: you're here to learn, support, and eventually grow the business
• Avoid making promises you cannot immediately fulfill
• Demonstrate your commitment through quick wins: quickly fix minor pain points that matter to employees at all levels

People respond positively to authenticity. Be honest about what you don’t know, and focus on listening and learning from your new team. Even though you might technically “be the boss,” it’s more likely than not that your team will know far more about the subject matter than you will. The worst thing you could possibly do here is be a “know-it-all.” Your first few months are about learning the ins and outs of the business.

How (and When) to Announce the Deal to Customers

Communicating your acquisition to customers depends largely on your business type:

• B2B with long-term contracts: Consider a quieter, gradual transition to avoid unnecessary client anxiety.
• B2C or service businesses: A thoughtful customer announcement can solidify relationships and even drive short-term revenue, especially if combined with introductory offers or continuity promises.

A proactive and transparent approach typically generates trust and goodwill. But be careful about telling your top customer (who’s best friends with the previous owner) about the transition too soon. Ultimately that will be your judgment call on when to tell them.

Employee Retention: More Than Just Financial Incentives

It’s tempting to throw money at potential retention issues. However, monetary retention bonuses can sometimes backfire:

• You risk misjudging appropriate bonus amounts, leading to confusion or resentment.
• Bonuses may inadvertently signal excessive financial resources, distorting team expectations.
• Financial incentives alone don't cultivate true loyalty or commitment.

Consider alternative strategies:

• Work with the seller to create meaningful, personalized "thank-you" bonuses that can double as retention incentives.
• Structure these bonuses so they're partially paid upfront, with the remainder held in escrow and released after a defined period.

This personalized approach enhances employee morale and aligns team interests with business continuity. If nothing more, make sure you have these tough conversations with yourself in the mirror before you close—we’ve seen numerous scenarios where the key employee (or employees) walk in the door Day 1 with new ownership and demand a raise. These conversations can be effectively navigated, but they do require a plan and serious thought about your approach.

Making the Business Your Own

Becoming comfortable as the new owner takes time, often much longer than anticipated. It’s common to spend months, even years, before the business truly feels like your own.

A critical milestone in this journey occurs when you clearly articulate and implement your own standards for quality, customer service, and team culture. Rather than relying solely on pre-existing standards or external benchmarks, trust your evolving expertise and intuition to shape what excellence means for your business.

Prioritize Building Trust

During the initial 90 days, your most crucial KPI isn’t profitability or operational efficiency—it’s trust (which obviously is harder to measure). Prioritize building credibility with employees, customers, and vendors through transparency, responsiveness, and consistency. Follow-through on key initiatives and promises is a major key to developing trust over your ownership period. And this trust translates directly into business performance and long-term success for your team.

Final Thoughts

The first 90 days after buying a business are challenging but pivotal. Focus on clarity, honest and frequent communication, thoughtful employee engagement, and clear customer messaging. Remember: Your role as an owner isn't to have all the answers immediately but to learn, adapt, and lead authentically.

Your ability to manage this critical transition period well sets the foundation for sustained business growth and personal satisfaction as an entrepreneur.