Buying a new business - should I clean house?

[The Stealthy One]

I am purchasing a struggling bricks-and-mortar business. I have a team of people I could bring in to fill positions in the business if necessary.

Should I clean house of all current employees, or evaluate each on a case-by-case basis? It's a delicate situation where I've got about two months to start turning things around. I need to hit the ground running (will probably close in January). Just wondering if I should even bother keeping any current employees on.

By the way, it's a retail business grossing roughly $280k pa.

[Ftalgen]

I would evaluate on a case by case basis because you do not want to lose current employees which have the potential to help you turn the business around. But on the same note I would def. bring in my own people to implement your new vision and strategy for the business. In short, go with a combonation of both the old and the new.

[dslackman]

Evaluate each. Why waste a good experienced employee if you don't have to.

[joshuaeric]

Also remember, you may have customers that are attached to employees.

Sometimes employees may know how to get things done fast. This usually is more applicable to technology, such as knowing the system.

When I was in the corporate atmosphere, I worked at a store where the managers did not know how to work one of the exchange systems for products. Imagine if both of those employees left, it would have been a nightmare.

That is the only thing I would worry about when cleaning house.

[biijuu]

I think you have to retain as many employees as possible.

Good luck

Biju
www lenvica com

[Journals009]

With so many options available to you, the question will become which vein of the business ownership arena should you pursue? Between franchises, existing businesses, start-ups, home based businesses and MLM's, it does become a bit overwhelming. When reviewing all of the possibilities you have to decide what will work best for you however, your chances of success are clearly best when you buy an existing business or franchise resale for many of reasons. With any new business you have two challenges: developing the product or service and then seeing what if anything, people are willing to pay you for it.

[Ryan Heatherson]

You may evaluate your employee on a performance appraisal basis and choose them up to their performance and qualities and then make up a team on this basis and also make some advertisement for new employee hiring and sets your mind free from your business. Take every one's advice but always make your own firm decision.

[draz]

I would look at evaluating each employee on a case by case. Keep in mind it's more cost effective to fix up someone's mistakes rather then go and train a new employee who doesn't know much about the business. You will also find that existing employees have a good feel for the environment at hand and this comfort should provide effeciency for the work at hand being done.

However at the same time, some employees don't like change within an organisation, i.e. new management taking over etc and you may find that they will in fact do a worse job then what they are doing. This being the case if your budget is sufficient and you feel as if the only way to guide the business is from starting fresh then do that, but remember to be really hard pressed on how the new culture will be etc. Also in terms of cultures you may find it will take years before one is established.

Hope this helps

[InvestInPixels]

Evaluate each one against how much they're bringing in for the company against how much they're taking out.

Good luck!

[vafire]

Sounds like fun! Ask the employees who does not do their job and who does a good job.. They are your eyes and ears when you are not around.

[stoneman]

Stealthy One - just came across your old post and was wondering what you did and how it worked out. I'd be really interested in how it worked out for you. In a similar situation, I kept the whole staff and slowly cleaned house and on reflection think I should have cleaned sooner.