Foreign Perspectives

When you buy a new business you’re keen to make your mark on your purchase and tell everyone you know about it, aren’t you?

Sure, you’re going to tell everyone that you know, but should you tell everyone else too? Should you really tell the customers who may have been loyally buying from the previous owner for many years?

If they have been buying from him/her for many years then the question you have to ask is: what is it about the business that they’ve been “buying”? Is it the charisma of the previous owner, or something that’s part of them that they’ve been buying? If it is, you’d better find out pretty darn quick because you’re going to lose those customers if you can’t replicate the reason for them to come to your business and you best not hang out that “under new management” sign either.

However, if you’ve bought a business which is in need of turning round then that’s quite a different matter. Did the customer base drop away because of something that the previous owner was doing wrong? Was it that the previous owner just put off the customers? In these cases, then, yes, you would want to advertise that the place is under new management as you will want to disassociate yourself from the previous owners as soon as you can.

Think carefully about it though. Once you’ve hung out that “under new management” sign, then it’s too late to go back and try to regain any previous base of loyal customers that the previous owner may have had.