When you have a company that isn’t performing as you had hoped, you’re faced with difficult decisions. You have to figure out if you want to keep going, grinding away at the company until it succeeds, or if you want to close up shop and move on to bigger or better things.
There are two questions involved:
• When to shut it down.
• What to do after you’ve decided to shut it down.
These both have different answers. We will explore these ideas in this article.
When to Shut it Down
First and foremost, it’s time to shut down your business if you don’t want to do it anymore. Passion is the most important part of a successful business, so if you’ve lost that passion it’s time to close your doors. However, there are other factors involved as well:
• Debt – If you’ve creating a lot of debt with your business and you’re struggling to pay the debt back, it may be time to shut it down. Debt is a heavy burden, and when the debt has grown to the point where even a turnaround with your business may not be enough to pay it back, it’s probably time to close doors.
• Years of Profit – The rule of thumb is to keep working on your business for 3 to 5 years. If you have struggled to turn much of a profit (or one to your liking) for 3 to 5 years, it’s probably time to close doors.
• Branding and Marketing – It’s also important to figure out where you are in the marketplace. Have you successfully marketed your company and still have had poor results? This may be a sign that your products/services aren’t ideal for your area.
• Merger Potential – Finally, you can see if there are other businesses that may want to merge with you. If you have something that other businesses can benefit from, this is a something that you may want to seek out.
If you’ve also run into financial struggles that make it hard to continue operating, it may also be time to close up the business. If you can’t afford to keep the business successful, then no amount of turnaround is going to save it.
What to Do When You’re Closing Up
Once you’ve decided to close up your business there are several options:
• Put it For Sale – If your business has a great brand and may be desired by others, you can try putting it up for sale. The reason for your closure will affect the sale price. If you’ve lost passion but you’re profitable, selling the business will be easy. If you’re struggling, it may be more difficult.
• Close Doors, Do Nothing – The least desirable option is to close your doors and store or trash your business. This is a waste of resources because your assets still have a lot of value.
• Liquidate Your Assets – You can also send your items to a liquidation company. Liquidation companies will turn the assets that still have value into cash, so that your business is still able to make you money.
Sale and liquidation are two strategies that will ensure your business is still paying you back for your hard work. It is hard to close your business. But just because you’re closing your business doesn’t mean you can still make money, and whether you choose to sell it or liquidate your assets, your business still has cash value.
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By | 2017-05-20T18:11:42+00:00 August 15th, 2014|Categories: Uncategorized|0 Comments

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