Many people dream of maintaining their firm. Sadly, many firms do not make it, and their owners are pushed to shut their doors or file for bankruptcy. In these cases, the owner needs to make the process as painless as feasible by seizing funds as best they can. Sometimes this involves a process called liquidation, where all of the business’s assets are sold off to buyers. This may incorporate stock, furniture, intellectual properties, or other equipment. Under some Chapter 7 bankruptcy cases, liquidation is needed as a way for a business owner to allocate funds to pay off debts to creditors.
On the surface, liquidation is a reasonably simple process, but executing it successfully can be deceptively difficulty. This is particularly true since a person considering liquidation is likely under the pressure of closing their business and is likely in the process of filing for bankruptcy. Thus, it is very necessary to have a solid plan for making your small business liquidation as thriving as possible.
First and foremost, you should consult a lawyer and an accountant. A skilled legal professional can help negotiate the terms of a bankruptcy case and make sure your rights are being preserved. Some people think that they have full understanding of the law to get through a situation without the help of a lawyer, but it is always better to be safe than sorry.
You should cancel any orders your business may have on file and return items to suppliers if it is at all feasible. Return policies will be distinctive for different companies, so this will need some research. The next step is to evaluate the value of your assets and plan the features of your liquidation sale. You may contemplate advertising your sale to attract more potential buyers.
If you decide that the liquidation process is not something you want to deal with individually, there are specialty firms that will send an expert to handle it for you. This will, of course, come at a price (often a percentage of the money made from the sale), so it may not be a practical option for those in a bankruptcy case.
While closing a small business may designate the end of one stage of a person’s professional life, a good liquidation sale can help make the transition to the next frame a little easier.
And remember one thing, never give up. Life is bigger than a failed business venture.