No one sets out to fail, but sometimes, businesses can be too expensive to run, costing you more than they are able to make. You can try to reduce your costs and to improve your earnings but, at some point, you might have to recognize that it’s time to close up shop. Whenever you do that, you want to ensure that you’re able to make as much money in the closing so that you can pay off debts and get some return for the work and time that you put into it, helping you reduce the personal cost of starting a new business in the future. As such, here are a few ideas on how, exactly, you can get the most out of your closing business.
Ensure you collect on your receivables
When you’re closing down your business, work has to be put into informing those who need to know, be they stakeholders, clients, partners, vendors, and the like. You’re also going to have to make sure that you’re paying anything that you owe. Similarly, however, you should make sure that you are paid what you owe. If you operate on any invoices or have money owed to you from any patient clients or customers, ensure that you collect now, as it can be tricky to collect when you’re no longer officially operating as a business.
Make the best use of your assets
In the process of closing down a business, you’re going to want a full accounting of all of the assets that you have at your disposal. There’s a good chance that a lot of them are going to be worth some money. Rather than simply selling them all off to the same place, however, you should make sure that you sell them where you’re likely to get the most money for them. This is especially true of the most specialist equipment and technology you have; if you want to sell hospital equipment, for instance, then you should sell it to those who specialize in buying it. This way, you’re more likely to sell it to someone who can really appreciate its worth.
Sell the business wholesale
Of course, if you’re able to sell the business, as it stands, in one swoop to a new owner, then that could be the best possible outcome. If a business is on the decline, it can be a tough sale, but finding a buyer is not impossible. There are those who could see potential in what you have set up, and have the capital that you might not to carry out the transformation that would see it become profitable. Similarly, a lot of franchises and larger operations are more than happy to buy their smaller competitors out of business. It can make stepping away from the business a lot easier and personally profitable.
It’s usually a sad time when you have to close down a business, but when it happens, being savvy about how you do it can give you the best chance of a positive start in the next step of your entrepreneurship.
