How To Close Down When You Exit
For some business owners, legacy is everything. They want the companies they have built to survive and their names to be remembered as the creators of these amazing businesses. However, others may not want to sell their company. They either have no desire to keep the business going or they are the business, and it would be impossible for the company to survive without them.
It may seem like they have no option but to keep the business running forever. This is not true. Successful exit planning will allow business owners to strip their company down of its assets, liquidating them, to gain what could be a sizeable profit (if the business was successful). This way they will have enough funds to prepare for their next steps.
Notify Your Employees
First thing you need to do is to tell your people. If you don’t, liquidating your assets could be made difficult. You need to be very careful how you communicate your plans with your employees. You will also need to keep in mind paying their final wages and tell them which date they can expect their final paycheck and make sure that you reimburse any out-of-pocket expenses.
Tell Your Customers
Not only do you need to tell your team that you are closing the business, you need to inform your customers. There are many ways to do this, depending on the size of your business - you can send out a press release, post on social media, or send out an email. Whilst informing your customers is important, you will also need to pay attention to any outstanding jobs you have. If you are unable to finish any of these jobs, you will have to make any refunds.
File All Paperwork
When closing the business, you need to ensure that all your papers are in order. File your final tax return and pay anything else that your business owes. Even if you desire to close your business you are still bound by all your tax responsibilities. You will also need to close all business accounts you own, this includes any registrations, licenses, patents and all credit and bank accounts. You will also need to file articles of dissolution everywhere you are registered to conduct business.
Sometimes closing down is out of your control and could be due to changing circumstances, health conditions, or unforeseen events. It may seem scary, but it allows you to start something new and focus on the next chapter of your life.
To learn more about exit planning you can read our pillar page.