Is It Time To Close Your Small Business?

We all know that starting a new business is a calculated risk. Entrepreneurs weigh each and every option before finally deciding whether or not to move ahead with a new venture. However, when it comes time to close the business, the same kinds of considerations need to be made.

Years of hard work and planning went into opening and running the business, so why risk closing without first making sure you’re in an ideal position to do so? Making sure you’re legally and financially ready to move on allows you the freedom to move on to another venture, or enjoy your retirement.

Questions to answer to know if it’s time:

Why am I considering closing? – If the answer is because you’ve had a successful run and a fulfilling career and you’re ready to retire, then the only thing left to do is shutterstock_25793086make sure you have enough in your retirement fund and call your lawyer to start drawing up the legal paperwork. However, if your business is struggling and it’s beginning to feel like more trouble than it’s worth, then you need to ask yourself…

Am I still having fun? – Remember that excitement and drive you felt when you first started your business? You could work 20 hours a day and love every minute because you knew you were building towards something great. When running your business begins to feel like more work than it’s worth, lack of motivation starts to creep in and affect the way you run your business.

Am I making a profit? – If you can’t remember the last time you were in the black and the expenses to run the business are compounding, leading you to put in your own personal money to keep the business going, it may be time to throw in the towel.

If you do decide that now is the right time to close down, make sure you do it the right way.

  1. Pay off any outstanding debts you may owe.
  2. Notify clients, vendors, and neighbor businesses of the upcoming closing.
  3. Cancel any permits or licenses you acquired to run your business legally.
  4. Dissolve any partnerships you may have with the help of your business lawyer.
  5. Work with your accountant to close your businesses tax filings.
  6. Work with a local liquidation company to help in disposing of any excess inventory, office furniture, or large appliances that you’ll no longer need.

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