Within the first five years of being open, half of small businesses will fail. If you realize that you can’t keep going, how can you salvage what’s left?
There are many reasons a small business will fail. Maybe you didn’t raise enough capital or didn’t market accurately, or maybe you made any number of other small business mistakes that are easy to make.
Don’t get discouraged. Even if you didn’t make it this time, you can learn from your mistakes and try again.
You might even potentially be able to make a little money on the way out. Here’s how to make the most of your failing small business and move on the right way.
Is It Really Over?
First things first: determine if it’s truly over. Take a look at your business and your recent behavior to see if it’s truly time to throw in the towel.
Are you lashing out at customers and employees? Do you dread getting up in the morning and going to work?
If the passion is gone and the money isn’t coming in, it’s a good sign you’re done for good. The best thing now is to keep a positive attitude and follow our tips for getting all that you can from your small business closure.
Know Your Worth
It’s important to start out with a clear picture of your company’s value. Go over everything from top to bottom to figure out how much you’re actually worth.
Learning your business’ weak spots and knowing how much you could sell your small business for is crucial. From here, you can figure out what your next steps are.
Figure Out Your Financials
Now is the time to get ruthless. You’re going to hack and slash in order to try to find some sort of profit from a failing venture.
Don’t just liquidate your assets. See if there’s old inventory that’s dragging the rest of your sales down and get rid of just that so that there’s still some value.
Make sure there are no surprise costs, like upkeep or back taxes. Transparency is key for any potential sellers.
Sales and Marketing
While this seems counterintuitive, don’t stop sales and marketing cold. Keep it up in order to show potential buyers that there’s still value in your business.
Promoting your business might actually attract the right potential buyer. Make a little cash by boosting sales and stay in the public eye before you close your business.
Find the Right Broker
It’s tough to sell your small business by yourself. You need help to figure out if potential buyers will really come through and give you the most for your property.
That’s why you need a business broker to handle the more difficult aspects of the sale. A service like fusionadvantage.com can help you during a time you need it the most.
Sell Your Failing Small Business
It’s never easy to admit it’s over and say goodbye. It’s important to stay positive and follow our guide when it comes to selling your failing small business.
Looking for more tips for start-ups and new companies? Check out our other business articles to learn more today.