When a company enters into a difficult financial position and company closure is inevitable, it’s important to know that you have a plan to cope with the eventualities that ensue. Thousands of businesses close every year, and with the aid of a company closure plan, this process is made a easy and hassle free as possible.
Creating a company closure plan will be made a great deal easier by referring to your original business plan to make sure that every aspect of your business is covered, with an exit strategy planned for. The best time to develop your company closure plan is within the original business plan when you start your business, putting into place all the necessary requirements for such an eventuality.
Planning for company closure is best done as soon as possible. As strange as it may sound, it’s best to create a company closure plan once your business plan is complete. If you create a detailed exit strategy as soon as possible, it’ll leave your company in a better position to cope with the difficulties of company closure.
When creating a company closure plan, it’s important to structure it in such a way that sets out clear sections designated to different areas. With each section given a heading, detailed instructions need to be added to each section which explain the procedure for dealing with different matters. Tax requirements, closing supplier and customer accounts and dealing with rentals and leases are just some of the typical factors that need to be taken into account.
Get Outside Support
The majority of small business will need a helping hand in the eventuality of a company closure procedure taking place. Solicitors, financial advisors and accountants will help to guide you through the difficult period, ensuring you’ve left no stone unturned. Estate agents, valuers, surveyors and auctioneers can also be of benefit, raising funds through the selling of assets.
Taking Final Payments
You must make sure that you’ve taken all outstanding payments, as you still need to pay for any outstanding tax up until the date your company closes. In addition, you should pay for any operating costs, payroll requirements and outstanding bills, such as utility and telephone bills.
You’ll almost certainly encounter a number of problems during the company closure procedure, but a company closure plan will at least make the process a lot smoother. Disputes amongst creditors and debtors are common, and in such cases, the assistance of an impartial mediator can help to bring a faster resolution.