According to the U.S. Small Business Administration, the U.S. was home to over 31 million small businesses in 2020. Many self-made entrepreneurs find success in the nation.
However, while starting a business is the dream for many, it does come with downsides like having to build a customer base and brand from scratch. Purchasing an existing one eliminates some of these concerns. However, buying an existing business involves many considerations, including an often overlooked one, the culture the buyer inherits.
Why does company culture matter?
Employers, managers and business owners need to care about company culture because the employees care about it. Company culture may affect many aspects of a business, from productivity to workers’ ability to cooperate effectively. Efficiency, atmosphere and more all may suffer negatively if the culture is toxic. Positive company culture is also more likely to attract workers. A survey by Glassdoor showed that 77% of individuals who took it stated that culture is one of the factors they look at before applying to a job.
What are ways to gauge a company’s culture?
Prospective buyers should do research online, looking at previous or current employee reviews, rather than simply taking the seller’s word. They should also ask for a tour during working hours to get a feel for the mood of the workplace and ask questions about policies on subjects such as time off, breaks and outside-of-work company interactions for team building. Buyers must assess whether the culture is one they support or if it is not if they are willing to put in the time, effort and funds to change it.
Buying a business is a major transaction. It is imperative for buyers to take into account important factors like the existing culture to ensure they receive a reasonable deal.