Going Out Of Business: What Happens Next
Every business experiences issues with cash flow. Some may not recover and, as a result, have to close. Going out of business involves several steps to ensure nothing is forgotten.
1: Do You Need an Attorney?
If you’re closing due to financial distress, you may not be able to afford an attorney. However, many free resources are available. You may need one to help you negotiate debt.
2: What are Your Personal Liabilities?
If you have liens on your business, then you may not be able to sell if that’s an option you’re considering. Therefore, you’ll have to pay those loans back to have the liens removed.
3: If Possible, Sell Your Business
If it’s an option, sell your business to a competitor, another interested party, or a vendor. Remember that your asking price may go down several times during negotiations. You may have the option of being hired as a staff member by the new business owner, too.
4: Shut Down Your Online Presence
Your online presence, including social media accounts, must be shut down. If you’re selling your business, all intellectual property must be transferred to the new owner. IP includes social media accounts, too.
5: Cancel Your Commercial Real Estate Lease
Getting out of your lease may be tricky. Often, commercial space for lease is for several years. If you’re going out of business before your lease is up, expect some pullback. If you hire an attorney, they may be able to help you with this step.
6: Alert Your Existing Customers
The last thing a customer wants to encounter is a closed sign when they expect to do business. If you have a client list, send them a notification regarding your upcoming closure. In doing so, this may also help you liquidate.
For more information about what to do or where to turn when you’re going out of business, contact Harkins Commercial Real Estate.