Whether you have lost your passion for your venture or felt the need to cut losses, closing down a small business is not a walk in the park. Deciding to close a business can be due to financial issues or plans to move on to bigger ventures.
To help you get through this major decision, below are a few reminders.
Inform Your Stakeholders
Start with one of the most considerate things to do – informing your employees as soon as possible. Word about a business closing down travels fast, and you do not want your workers to hear the news from the grapevine. Be honest about what led to your decision and continue to assure them of their livelihood until the chosen final date of operations.
Inform both your customers and suppliers of your plans for the business. Work with your people in closing any accounts with by paying out balances and completing all pending orders. Make sure to provide your customers with a reasonable timeline and delivery schedule. Select a final date for your business transactions and inform your customers and suppliers about it.
Lastly, inform the proper government agencies of your plans of closing down. Cancel your VAT registrations and submit your final payroll return to the HM Revenue and Customs. Don’t forget the final Pay As You Earn (PAYE) taxes and National Insurance contributions for everybody.
Hold a Closing Sale
If you’re in the retail business, a closing sale is a good way of letting everyone knows of the future of your store. It is also a great way to recover costs still tied up with the business. Marking down goods can be a good way to avoid additional expenses like trucking and warehousing.
Clean up the place
As one of your final responsibilities, and a way to bid farewell to your shop, you can clean up your space to make way for the next store. Enlist the help of a waste management company like LKM Recycling to properly dispose of rubbish and collect recyclable materials. You can return your business premises to the landlord in its original state to ensure you get your deposit back.
Closing down your small business does not happen overnight. Take heed of these reminders to make the closing process easier.