Many of us put a lot of ourselves into our business but unfortunately, there may come a time when we need to close our doors. When that takes place, we need to act appropriately to ensure that we restrict our losses. One of the ways that many businesses are able to do this is by liquidating their business assets. What are some of the things that need to be kept in mind in order to take care of this necessary matter appropriately?
Get Legal and Financial Advice - One of the first things that you should do when closing a business is to speak to your accountant and to a lawyer. They can help to describe the basics of liquidating your business, both from a legal and financial standpoint. They can also help you to put a plan together so that you can deal appropriately with your creditors and avoid any delays that could occur, if you do not have their cooperation.
Look at Your Assets - You may not be fully aware of the extent of your assets and inventory. It will be necessary for you to look at each individual item and to prepare each of them for sale through liquidation auctions. Those auctions may either occur in your local area or they could occur through an online service, which many business owners find to be convenient. As you are reviewing the items that will be sold through the liquidation sale, look for ways that you can increase their value. In some cases, it may be as simple as cleaning the item or painting it. If the liquidation auction is going to be held on your premises, make sure that it is neat and presentable. It may help to increase the amount that you make during the process.
Review Your Options - Not all businesses are going to find that selling their inventory and assets is worthwhile. One of the things that should be considered in this regard is the net sale proceeds, less the costs that are associated with the sale. Those costs may include advertising expenses, commissions, labor, rent and credit card fees.
Pay Attention to Security - Securing your items before sale can help to reduce the possibility that you will lose some of them, prior to the sale taking place. Move the items to a secure location and keep them under lock and key. Keep in mind, it may not only be outside resources that are after those items, it can also be disgruntled employees. Employee theft is on the rise, and a review of 23 retail companies showed that 71,000 employees were apprehended in 2012 (Source:http://www.businessnewsdaily.com/4657-employee-theft-rising.html). Those numbers may even be higher if the employees are upset over their upcoming job loss.
Consider the Sale - We briefly discussed the possibility of selling your items at auction, but you need to consider all aspects of the upcoming liquidation sale. This includes the value of the merchandise that will be sold, as well as the location and the best time to hold the sale. With those details of the sale established, you have a greater likelihood of profiting.
Lillian Dawn had experience working with asset auction companies. She has collected from a variety sources including http://www.hgpauction.com to write this article. Feel free to connect with her over at Google+.