Business Liquidation

 

Help with your business liquidation

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Steps to Business Liquidation Sale Simple,

Straightforward

You can still save your business from liquidation. Here's how.

 

 


If you are looking at the possibility of a business liquidation sale, the whole process might overwhelmed and confuse you. You might not know where to start. Usually most business owners doing a liquidation sale are under stress, both personally and financially. The need to liquidate assets means your business is going bankrupt, has garnered more debt than it can carry or you have simply chosen to close the business.

In any event, it’s important to know the steps you want to take to have a successful sale. Do it properly and maximize your profit. Then make a clean break. Otherwise its effects can come back to haunt you later when you are trying to move on with your life.

Here are a few suggestions to having a successful sale.

Four No-Fail Steps to Successful Business Liquidation Sale

1. Talk with your accountant and your lawyer. Getting correct and useful information as you begin this process is important. These professionals can provide you with information that can help with unloading debt and in completing your business liquidation. The fee you’ll pay your lawyer or accountant could prove priceless down-the-line. Remember the goal of your sale is to get rid of as much debt as you can and to turn a small profit, if possible.

2. Find out the value of your liquidation sale. You must do this estimate to be sure that your net profit is worth the effort. Make sure your estimates are reasonable and don't forget to include the expense needed to run a successful sale. And be careful. Many business owners think their assets are worth more than they are. Remember the price you can get for most equipment is not the price you paid, but the going market value for the used item. Also the value will depend on the condition of your equipment or inventory. Once you do some quick estimates, you might find a liquidation sale isn't worth your time. If this is the case, make sure to consult your attorney or accountant for other exit strategies.

3. Hire someone to handle the business liquidation sale for you. There are firms that specialize in this area. An expert can come in, price your items, handle the sale and train your employees for your newest endeavor - shutting the business down. In addition, if you cannot hold the sale at your business site for some reason, many experts will know where to have the sale or might hold it at their own location.

4. Be final in your terms during the sale. Don’t allow returns, and don’t offer warranties for the items you sell. You are moving on to something else, whether that is a new business, a new job, or retirement. Don't to get tangled up with dissatisfied customers, or the complexities of warranties. Be clear about your terms of sale and have those terms posted in many visible places, and be firm. It's worth it in the end to make a clean break.


The one sensible way to turnaround your business and stop business liquidation.

 

How Do You Decide To Close Business?

What problems have arisen to force you to close doors? Do you owe money to the IRS, individual agencies, or contract workers? There are many items to consider when you close business.

How will you meet the obligations of your loans and lease? A business cannot just close shop and expect loans and other obligations to dissolve into the wind. A business owner may have to file Chapter 7 bankruptcy, where the court liquefies business assets and distributes them among creditors. If a business owner feels they can negotiate directly with those they owe money, then they can try to work out a deal before it goes to court. However, this is not always the case, as it can be difficult to find a mutual standing ground with certain creditors. A court system can release financial burdens from leases, union contracts, and long-term lease agreements. By going the way of the court system, a business will dissolve quietly into the night.

It will not be easy to see the labor of love to close business. A business owner should seek advise from professionals, read the literature on the topic, and most importantly come to terms with the business failing. If they succeed in distancing themselves from the painful experience, then the prospect of moving into a different venture may not seem too far-off in the future. It can become a reality and a business owner may find the right approach the next time.

 

 
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