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Is it Time to Shut the Doors?

March 26, 2019 by OSYB Staff

Coming to the realization that your business dream is facing dire difficulties is a reality that no entrepreneur wants to face.  However, there is a time that you will have to make that decision before you find yourself in a greater predicament.  Ken Boyd of QuickBooks Resource Center shares areas to think about while making the right decision for you and your business.    There are some telltale signs that you should look at:

  • declining operating income with no viable plan to swiftly turn it around
  • shrinking profit margins
  • insufficient cash flow

Once you have looked into these areas and if you come to the conclusion that you are realistically unable to reverse these trends, it is time to make a clear-cut decision.  But, don’t make this important change in a vacuum,  get some objective advice from  professionals and personal friends and family to make a mindful decision.

When you have decided to close your doors, here are some tips on how to do it:

  • get the word out to all the people and businesses who will be affected by your closing
  • take this time to reach out to your business supporters and thank them for their business
  • work with your financial professionals (account and tax preparers) to shut the business
  • address the fixed costs that don’t end because you are closing the business like a rental lease
  • liquidate the business
  • be mindful of the way you manage your non-financial costs like letting employees go and your reputation

Remember, most successful business owners have many failed businesses before they find the business that they can ride to the top.  As difficult as it may be to close your business, sometimes it is the right decision to make.  You can always re-boot as long as you learn from mistakes and are thorough and respectful as you close your doors on this dream.

For more details:  Should I Close My Business?

Image Credit:  Deposit Photos