Liquidating a business may happen for a number of reasons. It may be due to a change in location or even retirement. If you intend to liquidate your business, here is a simple overview of the process.
Step 1: The first step in liquidation is to value your assets. This includes your furniture, your fixtures and any equipment which is used. It is important that you get a close estimate for these assets. In order to determine their value, you should seek the help of a CPA.
Step 2: Do not order any more stock from suppliers, as you need to get rid of all stock in order to sell and move out. New stock could prove to be difficult to return and will take up precious time and resources when you are trying to sell it.
Step 3: Check on return policies then aim to return as many items as you can to suppliers. Some suppliers may issue you with credit instead of actual cash. However, if you are moving from your current location, it is advisable that you don’t accept credit.
Step 4: Take time in selling your assets. Spending more time trying to sell can enable you to get the full market value. If you are in a hurry, you can speed up the selling process by offering discounts on the stock.
Step 5: It is important to protect your asset. Some of your staff might not react positively to the close of the business. They may try to take a part of your company’s assets or try to sell something in order to make money as compensation. To prevent this from happening, you should collect all the keys from your employees.
Step 6: Hire a liquidation company and advertise the liquidation.
Follow these steps for liquidating a business and get the best value on your assets.