If you are intending on liquidating a business but don’t know how to go about it, here is a simple and quick guide that can help to point you in the right direction.
1) Evaluate your assets: The first step in liquidating a business is evaluating your assets. You should value your furniture, fixtures and equipment. Basically, you should value everything that your company owns, no matter how old it is. You should know what the current value for these assets is, by enlisting the help of a professional.
2) Do not order: The next step is to stop ordering fresh supplies. Do not order any more stock once you know that you will be liquidating your business. Your goal is to get rid of everything in the business effectively.
3) Return stock: Find out about the returns policy from your suppliers and return as much as possible. Do not accept credit notes from your suppliers as you won’t be able to use them.
4) Sell your assets: You should try and get full market value for your assets if you aren’t in a hurry. For a speedier selling process, you should try and offer a discount on your assets.
5) Advertise: You can announce your liquidation inside and outside of the business. A press release in a newspaper is always a good move.
Provided you follow the recommended steps and seek the help of professionals, liquidating a business doesn’t have to be stressful.