Closing down a business — exiting what you have worked so much on — can be difficult and devastating. Deciding whether to keep the business or close it down is already a difficult decision in itself, so proceeding to start the exiting process is a whole different story.
Here, we will discuss a couple of things that you should remember when it comes to closing, exiting, or selling your business in Salt Lake City:
Inform the Management
The first thing that you should do is to inform the management about the exit and the company or business closing down. They are as involved in the process as you are, and they deserve to know what is happening to the business as well. Make sure that they have a clear view and consensus of its goals. You would not want to have some type of bad blood with your management and employees, which is why you should definitely let them in on the process.
Decide What You Want to Do Next
Before closing your business, make sure that you know what you want to do with it — its staff and operations. Decide whether you want to sell it to another party or completely close it down. However, you should remember that when it comes to selling, you might not get the amount you want to claim. Buyers may ask for discounts and may even negotiate with you for a much lower price, so decide if you are open to that. Leave an amount for yourself, as you definitely would want to pay yourself when it comes to selling the business.
Get a Team That Can Help You Transition
Remember that you cannot do everything by yourself, which is why it is important to get a team to help you with the process. Get a couple of professional advisors who can help you with the transition, as well as lawyers who can advise you with its important legal matters. You can also ask your entrepreneur friends what they have done and how they transitioned when they were in your position.
Deal with Liquidation
If you want to turn your business into cash, then go ahead and liquidate it. Liquidation is not just for insolvent businesses, which means that you can turn your business assets into cash. Call an insolvency practitioner who can help sell your assets, as well as distribute the proceeds to all of the business’ shareholders. This type of liquidation is called Members Voluntary Liquidation (MVL).
If you have debts that have piled up and you cannot pay them anymore, then chances are creditors are running after you. Consult trusted lawyers about this so you would not do anything that could cost you your business, assets, and lot of money. Hire a professional to help you with this step just to be safe. Never act on your own unless you know what you are doing, so you will not be caught up in some type of legal issue or problem.