The truth about business turnaround. Common mistakes & complete steps.
If you are looking into a business liquidation sale, the whole process
might overwhelmed and confuse you. You might not know where to start.
This isn’t, after all, usually an exciting time. Usually business
liquidation 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 business liquidation 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. Your accountant
and lawyer can provide you with information that can help with discharging
debt and in completing your business liquidation. This is not something
you should try to do alone. The fee you’ll pay your lawyer
or accountant could prove priceless down-the-line.
2. Figure the value of your liquidation sale and decide if it’s
worth it. After you figure out the value of your sale items, be sure
that your net profit is worth the effort. If, after you deduct the
cost of running the sale and paying debt, you don’t see a real
profit, it might not be worth the effort and small expense required
to run a successful sale. If it doesn’t seem worthwhile, be
sure to consult your attorney or accountant (step No. 1) for other
exit ideas.
3. Hire someone to handle the business liquidation sale for you.
This isn’t an undertaking you should handle alone. An expert
at liquidation sales 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 at liquidation sales
will know where to have the sale or might have their own site at
which to conduct a sale.
4. Be final in your terms during the business liquidation sale.
Don’t allow returns, and don’t offer to honor warranties
for the items you sell during the liquidation sale. You are moving
on to something else, whether that is a new business, a new job,
or retirement. You don’t want to get entangled in dissatisfied
customers, or the complexities of implied or stated 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.
Our
recommended procedure for turning around your business.
|