Thousands of businesses are forced to close down every year, so whatever the reason may be, you should ensure that you have a well structured and formal written plan. A company closedown plan will make the process as easy as possible for you, and with the aid of your business plan, you can make sure that all necessary areas are covered. You may have taken the adequate foresight in your original business plan to include procedures and strategies to follow in the event of a company closedown becoming necessary.
When you start a business, it may seem bizarre to consider including a company closedown plan in your business plan. However, ensuring that a detailed exit strategy is in place is essential if you intend to cover all your bases.
Ideally, your plan will list everything that needs to be done, broken down into a series of headings. Each heading will be dedicated to instructions on what should be carried out in such an eventuality, including matters such as tax requirements, rentals, and leases, closing accounts with customers and suppliers, and so on. Your company closedown procedure will be greatly enhanced by attributing a specific date or timescale in which each section should be completed.
Small businesses almost always need outside help to facilitate a company closedown procedure. You can use professional advisers such as solicitors, accountants, and financial advisors to ensure that you are taking the necessary and correct steps. If you own assets that need to be sold off in such a situation, you may require the assistance of an estate agent, valuer, auctioneer, or surveyor.
It’s important that you collect all the money that you are owed when proceeding with a company closedown, so that the correct amount of tax is paid.
Ensure all of your outstanding bills and operating costs are taken care of, too. Utility bills, telephone, bills, and payroll requirements will need to be dealt with for the period up to when your company closes.
Encountering Stumbling Blocks
It’s not uncommon for disputes to arise when dealing with a company closedown, especially with creditors and debtors. In such an eventuality, it’s often helpful to acquire the assistance of an outside mediator to offer an objective viewpoint and guide both disgruntled parties to an amicable agreement.