The first 100 days after you buy a business

Settlement feels like the finish line. It is the start. The first few months after you take over a business set the tone with staff, customers and suppliers, and they are when the gap between what you expected and what you actually bought becomes clear. A plan for the first 100 days helps you protect what you paid for while you learn how the business really works.

The guiding principle

In the first 100 days, your main job is to keep the business running smoothly and to learn. Most of the value you bought sits in relationships and routines that were built before you arrived. Big changes made too quickly can damage those relationships before you understand them.

That does not mean doing nothing. It means doing the right things in the right order.

Before day one

Some of the most important work happens between signing and settlement.

Handover plan. Agree with the seller how long they will stay, what they will do, and how introductions to staff, customers and suppliers will be made.
Banking and payments. Open new business bank accounts, set up merchant facilities and arrange for customer payments to reach you from settlement.
Registrations. Make sure your entity has its ABN and, where required, GST registration in place. Register for PAYG withholding and set up superannuation arrangements for employees. If payroll tax applies in your state, register for that too.
Insurance. Arrange your own cover to start from settlement.
Accounting system. Decide whether you will keep the seller's system or move to your own. Moving at settlement is often cleaner than moving mid-year.
Staff transfer. Confirm which employees are transferring, their terms, and how accrued entitlements have been handled in the sale agreement. Prepare letters of offer or employment documents with your lawyer's help.

Days 1 to 30: listen and stabilise

Meet your people

Talk to every employee early, individually where possible. Tell them who you are, why you bought the business and what will and will not change in the short term. Uncertainty is the main reason staff leave after a sale. Clear, honest communication reduces it.

Ask each person:

What works well here?
What frustrates you?
What would you change if it were your business?

Listen more than you speak. You will learn more about the business in these conversations than from any report.

Meet key customers and suppliers

With the seller, contact your most important customers and suppliers. The aim is continuity. Reassure them that service, quality and contacts will stay steady. Watch for any relationships that depend heavily on the seller personally, and plan how to transfer them during the handover period.

Get control of cash

Set up weekly cash reporting from the start: cash in the bank, what is owed to you, what you owe, and what is due in the next few weeks. Acquisition debt means you have less room for surprises than the previous owner did. Make sure the first loan and vendor finance repayments are planned for.

Days 31 to 60: understand the numbers

Build your dashboard

Agree a small set of measures that tell you how the business is going each week or month. For example:

revenue against the same period last year
gross margin
wages as a percentage of revenue
debtors overdue by more than 30 or 60 days
cash position and the forecast for the next 13 weeks
one or two operational measures specific to the business, such as jobs completed or orders shipped

Compare reality with due diligence

Check the business's actual results against the figures you relied on in due diligence. Look for differences in margin, costs and seasonality. If something does not match, find out why early. If the sale agreement includes warranties, retentions or an earn-out, keep records carefully; see earn-outs explained.

Look at compliance

Review that payroll, award coverage, superannuation, BAS lodgements and any industry licences are all in order under your ownership. Problems inherited and left unnoticed become your problems.

Days 61 to 100: plan improvements

By now you should understand where the business makes money, where it loses it, and who it depends on. This is the time to plan, not yet to overhaul.

Pick a small number of priorities

Choose two or three improvements that are high value and low risk. Common examples:

Pricing. Many owner-run businesses have not reviewed prices for years.
Debtor collection. Faster collection improves cash without any change to customers.
Systems. Replacing manual processes that depend on one person's knowledge.
Reporting. Monthly management accounts prepared promptly, so you can act on them.

Write a plan for the next year

Set out what you want the business to look like in 12 months, the main initiatives, the cost of each and who will lead them. Share the parts that affect staff, so they can see where the business is going.

Changes that should usually wait

Some changes are best held back until you understand the business fully:

renaming or rebranding the business
restructuring roles or letting staff go, unless there is a pressing reason
changing major suppliers
large capital spending
big shifts in the services offered

There are exceptions, such as urgent safety or compliance issues, which should be dealt with immediately.

Working with the seller

The seller's knowledge is valuable for a limited time. Use the handover period well: ask about the history behind decisions, unwritten customer arrangements, supplier quirks and seasonal patterns. Set a clear end date for their involvement and plan for the business to run without them before it arrives.

In the first 100 days, protect the relationships you paid for, get a firm grip on cash, and earn the right to make changes before you make them.

Looking after yourself

Buying a business is demanding. Long hours in the first months are normal, but they are not sustainable for years. Build a team and routines that let the business run without you being involved in everything, because that is also what makes it valuable when you eventually sell.

How we can help

Kainos Consultants supports new owners through settlement and the months that follow: setting up registrations and accounting systems, building monthly reporting and cash flow forecasts, and reviewing results against the deal. Learn about our accounting service, or contact us to plan your first 100 days.

This article is general information only and does not take into account your circumstances. Speak to a qualified adviser before acting on it.