If your business is struggling to make ends meet, then you may be considering taking the first steps to trigger the closure of your company so that no more money can be lost. However, it can actually cost you a considerable sum to close down your business if you fail to take the necessary steps to minimise the damage, leaving you even worse off in the long run. Fortunately this doesn’t have to be the case, as there are a number of simple ideas that you can pursue to start dissolving your business in the most financially sound manner. So, if you’re interested in finding out more, then keep on reading!
Give Your Staff Notice
One of the biggest payments that you will have to fork out for if your close your business in a poorly planned manner is for your redundancy costs, as failing to give staff any notice of your decision to close the company will leave them without access to work and the ability to earn money. Redundancy payments are often several months of pay and they should cover every full time member of staff inside your business should you decide to close within the next couple of weeks, so it could end up costing you hundreds of thousands of pounds depending on the size of your brand. Instead, if you take the time to let your team know that the business is struggling when you first spot the warning signs then they can begin actively seeking out alternative employment. Your staff need to have other jobs to go to before you can close your company if you want to save on redundancy payments, as this way their income will not be dramatically affected and they can continue working in their new role when your business has shut down. The more notice that you can give them the better, as it can take several months or even more to source a new job, especially if you’re a skilled employee with one main area of concentration.
Sell Your Machinery, Tools & More
It’s more than likely that your old business boasts a variety of diff assets. These assets can easily be sold to help gain back some of the money that you are losing due to your faltering business, so you must never skip over the opportunity to sell your machinery, tools, trucks and more! You can host an open auction day where you invite local businessmen and other interested parties to your commercial property so that you can start to sell what’s inside, or you can post advertisements for your items online so that you can appeal to buyers from around the globe. Some buyers look for specific items, so you can type in a phrase like sell my trailer to locate private companies who are always ready to buy second hand goods. You could make enough to pay your debts and break even, so never skip this step if you want to stand any chance of thriving financially after closing your business.