Making the choice to liquidate your business or not isn’t an easy one, nor one that crossed your mind when first opening up your operation. We understand the passion you’ve put behind building everything that your business is and everything you wanted it to be. Unfortunately, as many business owners new and old come to realize, a decision needs to be made about liquidation. Here are some important considerations for liquidating your business.
What is liquidation?
It is when a business sells its assets in order to earn enough money to pay back business debts.
You are wanting to leave the business, but don’t have a successor.
Maybe you have been in business for years and are on the brink of wanting to retire. If you've come to realize that no family member is interested in taking over the business or if you haven't found a suitable replacement, this might be a good time to consider liquidation. This is especially true if you have many items or assets to be sold. This might be a good time for you to consider liquidation, especially if you have many items or assets to be sold. If you have any debts left to pay, the profit from liquidation will go towards those first and then anything leftover will be money you get to take with you into the golden years.
You are experiencing significant financial hardship.
Most often, business owners liquidate because their debt is becoming too great in proportion to what money is coming in. Maybe it’s a change in the market or a business venture that did not turn out as you had hoped. Whatever the case, the best choice to earn money to pay back creditors is often liquidation. This will enable you to get the money you need to pay back quickly and at a great rate if you choose an auction as your selling method of choice.
You have found a new business opportunity.
While we don’t recommend jumping ship at the first sign of another business venture, for some liquidating a business that is no longer profitable might be the right choice for you. Business owners who are excited about what they are doing often have better success than those who don’t. If this new business opportunity is time sensitive, liquidating items at an auction is going to be a great choice for you because the cash is typically quick and worthwhile.
When first opening your business’s doors, you probably weren’t thinking about future liquidation. However, if you find yourself in this spot, contact Backes for a quick turnaround on your business items.