Howdy Searchfunder!

If you buy a business, expect profitability to drop for 6-18 months. Prior owner kept it lean, you have debt payments, and errrybody wants a raise suddenly. Seeing this a lot lately and it was a common these at SMBash conference.

5 tips to help post close:

1. Have +3 months cash and a line of credit to buy time while you acclimate

2. Drive more sales with grass roots marketing and new owner energy

3. Focus on gross profit margin - the most important KPI to control by raising prices or getting more efficient

4. Speed up cash collection through online payment and chasing AR

5. Hire a bad bookkeeper so you never realize profitability declined