Sometimes the best exit strategy is to simply close the doors and hang up the ‘out of business’ sign. While it may seem like an unprofitable approach, it’s actually a smart decision for many business owners.
Why Closing Down Works
Many businesses are just plain difficult to sell. They may be difficult to price or the business brand and success may be tied to the owner. For example, a service provider may have a difficult time selling the business because the customers are buying into not only the service but also the brand and person providing the service.
Sometimes it can also take years to find the right buyer. In that time, you could have closed the business and moved onto something else.
Closing down doesn’t mean necessarily letting go of everything. You can sell off your assets. If you have rights to digital products or inventory, those can be sold. You can sell the domain name and other business assets. There is still a way to earn a little extra money when you close down a business.
If you know that closing down your business is your exit plan of choice, you can plan ahead. A year or two before you close it down, you can pay yourself more and begin to sell off assets. Make sure debts are paid off and if you’re a service provider, you might even consider not taking on any new clients.
Closing down your business allows you to cut ties and end your business. There’s nothing to worry about and no clients to transition to a new owner. You can essentially wipe the slate clean and move on to whatever is next for you.
One of the reasons it is so important to integrate an exit strategy into your business plan is because you just never know what’s going to happen with your life or your business.
If you are interested in exploring a merger or sales opportunity, please contact me, I am always on the lookout. We can have a no obligation chat about your business to see if there’s a way for us to work together, or I can look into my contacts to see if I can connect you with anyone that would be better suited to help you.