Shutting Up Shop In 5 Steps

Shutting Up Shop In 5 StepsSource: Flickr

For most people, realising that it is time to bring your business to an end and closing your company can be a very sad time. Other people might be a bit more optimistic and might see this as a chance to start on some new and exciting ventures. No matter how you feel about this, though, you need to make sure that you close your business by following the correct steps. That way, all your loose ends will be tied up, and you will be able to walk away from the company in a very dignified manner.

1. Get Payment for Unpaid Invoices

If you have any outstanding invoices, it is important that you call these clients or customers to ensure that they pay you as soon as possible. You might need this cash when you get to the next step! If your clients are slow to pay up, be sure to send a couple of reminders to them. If that doesn’t get the ball rolling, you will need to issue a final demand. You could even add on interest at this point. Still not been paid after sending a final demand? Then it’s time to get a lawyer on board to get the case to court.

2. Pay Outstanding Bills

So, your clients have all paid up, now it’s your turn. You will need to pay off all your debts before you can officially close your business. If you are still struggling to find the money needed, you might have to look into some same day business loans so that you can clear all your debts. If you are unable to pay, then you will be the one who is taken to court!

3. Give Your Employees Notice

You need to now consider your employees. Ideally, you should give them at least a month’s notice that they will be made unemployed so that they have plenty of time to line up a new position. You will also be doing them a favour by writing outstanding letters of recommendation. No matter how bad your finances may be, you should also pay your employees a final paycheque so that there are not too many hard feelings.

Shutting Up Shop In 5 Steps

Source: Pexels

4. Terminate Your Office Lease

You will also need to make sure that you terminate your office lease in good time. In fact, your lease or contract will probably state how much notice you need to give the property company. It is important that you give plenty of notice before you move out so that they can find someone else to move in after you. If you don’t give them enough warning, you might be slapped with a massive fine.

5. File Your Final Taxes

Just because you are closing your company before the year is up doesn’t mean you get away from tax! If you earned enough to pay tax, you need to file your taxes. Otherwise, the tax man will be after you…

Once you’ve followed these steps, you will be able to move on to whatever exciting plans you have!