5 Factors to Consider Before Closing a Business

An estimated 200,000 American businesses closed for good as a direct result of the pandemic.

Are you currently feeling forced to think about closing a business amidst Covid-19? If so, then you’ve got a lot to consider before you shut down. Not only do your employees deserve notice, but you need to follow the law, too.

We know how stressful, trying, and emotional closing up your business can be. There’s no need to panic, though. Read on for a comprehensive list of what to consider before you make your business closure final.

1. Your Future: Personal and Business

Closing up a business is not a lighthearted or easy decision. Before you make a final decision, you must consider the future of both yourself and your business.

First, you need to consider why you are contemplating walking away. Starting up your business likely was an uphill battle, so don’t be quick to disregard your own hard work. Consider your options such as:

• Seeking financial help from the government
• Getting a loan
• Selling your business
• Asking your loyal customers for help

Have you already gone through all your options? If you’re sure about your decision, then it’s time to move on to step two.

2. Your Employees

Once you’re sure that you need to close your business, you need to inform your employees.

This will be one of the most challenging aspects of a closure. Don’t forget that you’re dealing with people’s livelihoods. Be as gentle, calm, and reassuring as possible.

3. Your Assets

Depending on your business niche, you likely have a lot of assets, too. Don’t let that valuable property or merchandise go to waste. You can cut your losses by selling your unneeded business assets now.

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4. Your Customers

Don’t make the mistake of closing up shop without considering your customers! Your loyal fans have been with you from the beginning, so don’t ghost them. Give them a formal ‘goodbye’ or special sale to celebrate the end of your journey.

5. The Law

As always, you need to follow the law when closing, too. Make sure you cancel your registrations, licenses, permits, and business names. Dissolve your business legally, and you’ll be on your way to the next step in your journey.

Closing a Business: Your Last Resort But a New Hope

When you’re closing a business, it can feel a lot like the last whispers of your hopes and dreams. While closing up shop is often a last resort, it doesn’t have to be the end of your business journey. There’s always a new hope on the horizon.

Use this opportunity to think about your next big business idea. The pandemic is creating new markets, trends, and desires. So, what can you create to help during this unprecedented time?

Are you looking for more inspiring articles to help you keep your hopes up this year? We’re right here to deliver! Browse through our main blog page now to see more of our best content.