Closing a Business

Shutting down a business is a process.

You must always protect yourself from focusing on problems and the resulting feelings of despair or helplessness. Instead, ask yourself, "How can I achieve the positive results I desire? How can I get it right?" This is particularly critical if you have a history of thinking negatively or have too many negative influences around you.

The hardest lesson to learn is that you're not going to be right all of the time. If you don't quickly begin to focus on persistence and new knowledge of a better way of doing things, sooner or later you'll suffer some very large losses. We have known several highly intelligent, educated men and women who were wiped out because they weren't open to the truth of what they were and weren't doing. Brains, experience, ego, stubbornness, and pride are deadly substitutes for having and following sound strategic and quantification processes. It may be a hard decision, but when you are ready to shut your business down, there is a process to consider.

11 Steps to Shutting Down a Business

Step 1

Reach agreement and obtain authorization from the owners. 

Step 2

Engage professional consultants as team members.  For example, Lawyers, Business Consultant, CPA, etc.

Step 3

Prepare a list of assets and perform a physical inventory.

Step 4

Prepare a plan and assign responsibilities.

Step 5

Develop a schedule for implementation.

Step 6

Release announcements and notices to customers, suppliers, bankers, and employees.

Step 7

Implement the plant

Step 8

Transfer or conclude contract obligations such as uncompleted work, leases, etc.

Step 9

Plan time and date to close the operation.  This would be the time when operations must seize.

Step 10

Net Cash flow and value plan and schedule of stopping operations.

Step 11

Select security and maintainance services.

This is really a summary list of all of the activities.  This is an emotional process.  But don't beat yourself up.  Your not a failure and you may not realize that now, but everything you learned through owning a business will benefit you in the future.  There are few people who even attempt to become business owners, so be proud of yourself and what you have accomplished.  The tricky part is getting rid of the emotions attached to the concept of your business.  The fact is that you must take the time to think clearly about your goals for after shutting down the business.  Take the time, set your goals, create a plan of action and move forward.