Small Business Closing....What to Do
Recently, I was asked what to do about closing a small business. Here's my answer. Hopefully, none of you will have to experience this....but if you do, here's some information to get you started. Hello Jenn: First of all, I am sorry that you have to close your business. Owning and operating a business is tough....even in the best of times. You may consider hiring a business broker to help you sell what is left of your business. But before doing that, please ask yourself the following questions: Did a bank provide financing to startup your business? If so, the bank will most likely have a "first lien position" on all your assets. So when you sell those assets, the funds have to go to the bank first to pay down any of the debt. If not, then you are free to sell those assets. What assets do you have to sell? Inventory? Furniture, equipment? What is the market value (i.e. what do you think it would sell for)? Are you currently in a leased space? If so, make sure you talk