Starting up a business is challenging, but you enjoy it as you get the flow of things. Most people enjoy being their boss, earning profits, and creating job opportunities for other people. Some entrepreneurs are successful because of their businesses.
However, not everyone is successful when it comes to business. Some people decide to shut it down. Some entrepreneurs explain it to be a difficult choice, while others are ready for it. As you shut it down, there are things you need to take into consideration.
1. Inform Your Customers
Getting customers to buy your products and even place their loyalty to your business is an uphill task. Some entrepreneurs even accumulate Twitter likes as a way to get more people on their social media page.
There are so many other marketing strategies that people use to make people buy their goods. Thus, as you choose to shut down the business, consider informing them. Let them know that the firm will no longer be in business.
Appreciate the time they bought their goods and wish them well. Also, if there is any customer who has not paid you, ensure they give you your money on time. It is not necessary to mention your reason for the closure.
However, some people will consider mentioning the reason because they don’t want to be misinterpreted by evil minds. It is also for maintaining a good reputation until the end because some companies were well known.
Thus, some people may take it into social media and create YouTube Vlogs, and bloggers may start running negative stories that are not true about the company. All in all, it is best to inform your customers about the business closure. You may need them in the future, that is, if the company will be shifting to another business
2. Inform Your Suppliers
Just like customers, it takes a lot of time and effort to get reliable suppliers. That is why you need to inform your suppliers about the closure. It will be best to maintain a good relationship with those who helped you build the company from the ground to the top.
It will also be best so that if any bills are not cleared, you can pay for them. Moreover, you will be preventing embarrassments of the supplier coming after you with legal charges.
Also, it would be best if you gave them a month’s notice so that they don’t have to book your supplies. Some suppliers import their goods. So, if you tell them earlier, they will be saving the chipping charges and thus preventing losses.
One last thing here, you can not only attract customers through Twitter engagements, likes and followers, but your potential suppliers as well so use social media wisely.
3. Inform Your Employees
Those who were running a sole-proprietorship may not be having employees. Thus, they will shut down the business without having to make any explanation to their employees. However, to some companies, they may be having more employees.
It is best to let them know that you will be closing the business. This information will make them ready to start applying to other firms. Also, you will be able to create a good relationship with them if you need them in the future.
Additionally, you need to pay for their salaries to avoid further complications. Wish them all the best in their future endeavors and appreciate them for their service.
4. Settle Outstanding Debts and Tax Returns
As you close your business, ensure you go home without debts. Settle any financial obligations to avoid complicating issues. Pay the electricity bills, rent, and any other bills.
Every state or country has its legal charges as a form of taxes. Ensure you make the final tax returns on time before closing the business.
5. File Dissolution Forms
Legal organizations and government officers may have registered some businesses. Thus, you need to file a dissolution form in advance to notify them early.
6. Close Business Bank Accounts
Some businesses create a separate account that is specifically for the firm. Saving money at the bank account is safe for your savings. It is also good to earn interest and to borrow loans. Thus, it would be best if you informed the bank that you are closing the business. Additionally, make sure you pay loans if there are any.
7. Take Stock Inventory
In most cases, not all businesses get to end their stock at the time of closure. As much as your business is shutting down, have a plan to liquidate the stock inventory. You can sell the outstanding business inventory at a wholesale price to another firm.
8. Remove Your Business Name
Some firms have the name of the business written on the walls and the doors. If you fail to cancel your business name, that means you are still in operation. Also, some people may still be using it to refer to that building. Thus, you can repaint the walls and close any account under the business name.
As much as it is not easy to close your business, you should do it properly. Make sure everything is in order even as you shut it down. Pay debts, suppliers, and employees. Ensure you don’t have anything that will cause you further issues.