There are many reasons why you might be considering shutting down your business. It could be that you are moving abroad, COVID-19 has taken its toll, or you're taking your career in a different direction. In this article, we'll discuss the things that you'll need to know if you are closing your business.
If you've made the big decision to shut down your company, there's a lot of different people that you'll need to notify. Obviously, if you have any employees, they will need their required notice so they can prepare both financially and emotionally. You should talk to them before anyone else.
You also have to consider your creditors. Notify your suppliers, lenders, utilities, and any service providers that you are closing up shop. This way, you can avoid later charges and fees.
And don't forget to make the announcement to your loyal customers! For this, you can utilize your social media channels.
Sell all of your inventory
The next step in the process is to get rid of all of your inventory. The last thing you want is mounds of stock leftover that you can't sell. Try hosting closing down sale so you can get rid of as much as possible, and still make a bit of profit. If you still have things left over, you might consider donating them to a charity.
Consider your storage options
If you do end up with inventory that is leftover or other items from the business (such as machinery), you might consider hiring a storage space. There are many options, like these at Safestore. This way, you can work out what you are going to do with the extra items without having to pay rent at your business location. It will also eliminate extra expenses that may cause you to lose more money.
Settle and pay debts
Chances are that you have accumulated debt from running your business, whether it's loans from a bank or family member. It's vital that you settle and pay these off as quickly as possible. The last thing you want is to be paying things off way after shutting down your business.
Liquidate your assets
The next step is to write yourself a list of all your business assets so that you can liquidate them accordingly. This could include your machinery, real estate, office supplies, and business equipment. Make sure that you keep records of all of your sales, as you will need this information for your tax return.
Cancel permits, business cards, and subscriptions
The final step in shutting down your business is to cancel all of your permits, licenses, and subscriptions that you no longer need. This includes your business cards, magazines, business websites, and software. You certainly don't want to be hit with a bill later because you simply forgot to cancel your subscriptions.
By following the steps above, you'll ensure that you do everything necessary to properly shut down your business. Just make sure you also follow all of your state laws and regulations and don't forget to file your last tax form correctly. Good luck on your new adventure!