You can still save your
business from liquidation. Here's how.
If you are looking at the possibility of a business liquidation sale,
the whole process might overwhelmed and confuse you. You might
not know where to start. Usually most business owners doing a liquidation
sale are under stress, both personally and financially. The need
to liquidate assets means your business is going bankrupt, has
garnered more debt than it can carry or you have simply chosen
to close the business.
In any event, it’s important to know the steps you want to
take to have a successful sale. Do it properly and maximize your
profit. Then make a clean break. Otherwise its effects can come back
to haunt you later when you are trying to move on with your life.
Here are a few suggestions to having a successful sale.
Four No-Fail Steps to Successful Business Liquidation Sale
1. Talk with your accountant and your lawyer. Getting correct and
useful information as you begin this process is important. These
professionals can provide you with information that can help with
unloading debt and in completing your business liquidation. The fee
you’ll pay your lawyer or accountant could prove priceless
down-the-line. Remember the goal of your sale is to get rid of as
much debt as you can and to turn a small profit, if possible.
2. Find out the value of your liquidation sale. You must do this
estimate to be sure that your net profit is worth the effort. Make
sure your estimates are reasonable and don't forget to include the
expense needed to run a successful sale. And be careful. Many business
owners think their assets are worth more than they are. Remember
the price you can get for most equipment is not the price you paid,
but the going market value for the used item. Also the value will
depend on the condition of your equipment or inventory. Once you
do some quick estimates, you might find a liquidation sale isn't
worth your time. If this is the case, make sure to consult your attorney
or accountant for other exit strategies.
3. Hire someone to handle the business liquidation sale for you.
There are firms that specialize in this area. An expert can come
in, price your items, handle the sale and train your employees for
your newest endeavor - shutting the business down. In addition, if
you cannot hold the sale at your business site for some reason, many
experts will know where to have the sale or might hold it at their
own location.
4. Be final in your terms during the sale. Don’t allow returns,
and don’t offer warranties for the items you sell. You are
moving on to something else, whether that is a new business, a new
job, or retirement. Don't to get tangled up with dissatisfied customers,
or the complexities of warranties. Be clear about your terms of sale
and have those terms posted in many visible places, and be firm.
It's worth it in the end to make a clean break.
The
one sensible way to turnaround your business and stop business
liquidation.
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