How To Liquidate Your Store
There are many things that need to be considered when it comes to liquidating your store. One of the first steps is understanding exactly what a liquidation is. Liquidation in the most general sense is the complete cancellation or disposal of all of your company's assets by all parties involved in a company transaction. Once this transaction has been completed and all outstanding debts have been satisfied, the company can be dissolved. However, before you can start the process of liquidating your business, you must first learn about the different methods available. To help you with this, here is a short overview of the three most common methods used today:
First, a company must first determine the best method for how to liquidate a business. After all, there are several different types of business transaction liquidation. Some require extensive research and analysis, while others can be resolved rather quickly. In the case of a business that is facing bankruptcy, liquidation can even be mandatory. Therefore, you must have an understanding of all the available methods so that you can make an informed decision.
Second, you must develop a list of all of your company's assets. This will not only include tangible assets such as furniture and equipment, but also intangible assets such as goodwill and trade names. The good thing is that these types of intangible assets do not have to be sold to pay off debt. You can cancel them altogether or use them as a basis for a financial transaction with another company.
Third, you must decide how to properly liquidate your business. While it might be tempting to simply call a local bankruptcy lawyer or sell your business into the hands of a buyer, this would be extremely dangerous. First, you run the risk of offering your business at a ridiculously low price. Second, the buyer may not follow through with their end of the bargain and run off with your business instead. Selling your business in this manner could open your business up to federal and state tax liens.
Fourth, you must consider each method of liquidation differently. If you are selling your business, you must consider selling at a good price. How to liquidate a business? Sell it to another entity in which you will receive a large profit. However, if you are considering bankruptcy, the most obvious option is to liquidate the assets of your business and use them to pay off debts.
Fifth, when you liquidate a business, you must always remember what caused it to go under in the first place. It may be a poor product, bad business decisions, employee problems, financial difficulties, or any number of reasons. If you can not find the root cause of the failure, then you will never learn from your mistakes. As a result, you will always repeat the process over again. Thus, the more you delay in making changes, the more likely your business will continue to fail.
Finally, how to liquidate a business is not an easy question. You must take into account all the costs involved in liquidation, including taxes, attorney fees, and more. You must also consider the value of your home, inventory, equipment, and property. If you are unable to find a buyer for all of these assets, then liquidation may be the only option. Again, this process is rarely an easy one, but if you do it right, you will emerge from it better off than when you started.
Hopefully, this brief article has given you some ideas on how to liquidate a business. Like any large decision, it is important that you take the time to think about your options carefully. While it is true that many small businesses are able to continue operating with only a small amount of cash, others are not as lucky. If you are faced with this decision, it is always a good idea to consult with a lawyer before proceeding.
Once you have examined all of your options, and feel either pressed for time, or simply want an exit through you can turn assets into cash, you might consider hiring an auctioneer to auction off your assets. In the New York and New Jersey area, there are experienced auctioneers, such as Eliot B Millman, AJ Willner, and David Maltz, who specialize in auctioning off retail businesses.
You can also offer the contents of your business on Craigslist, as well as setting up Buy It Now and auction listings on eBay.