Dear Aunty B,
I have been running a small business making designer furniture for the past eight years. People who don’t like the furniture at Freedom or Ikea have been buying my tables and stands.
Since January my orders have dried up. Are things going to get better fast, or should I close because I owe money. And how do I “close” a business?
No, it is not going to get better for quite some time. Unless you go on a big marketing drive or change your business, then I cannot see how things will improve for you in the next 12 months. Seek some independent advice though, as I am not across all the facts. As for closing your business, here is a list based on advice from CPA Australia on how best to do it.
Set a date for closing and cut-off of everything.
- If the business is in leased premises, close the business when the lease expires or negotiate an arrangement with the landlord.
- Advise all suppliers and associates that the business will be closing on a particular date.
- Advise all customers of the same details, although make sure that they are advised a few days before the actual closure so you can extract maximum profitability right up to the end.
- Sell all the assets of the business and pay all the bills.
- Arrange the disconnection of utilities; water, gas, electricity and telephone.
- File all the necessary returns and financial accounts through your accountant.
- Close the doors and if there is any money remaining after paying all the debts, go and have a holiday.