A couple of weeks ago I wrote a post on avoiding the business wind-up, which we’ve been hearing a bit about in the media over the last few months. This post I wanted to address how to make the best of it if winding-up your business is no longer a choice.
Closing a failing or insolvent business, or selling a business because you need to, can be a bit of an emotional roller coaster. Often business owners feel a mixture of relief that it’s going to be ‘over’, but that’s usually coupled with some grief around the loss of the business. After all, what on earth does one do with their time now? And going back to working for a ‘boss’ once you’ve tasted a certain level of freedom in your work day can be tough.
Many business owners think they can just close the doors and walk away. However, that’s a bit of a furphy. There are still creditors to be paid, staff members with entitlements (for which most business owners and directors are now personally liable), legislative requirements and business assets to be dealt with.
So how to you make the best of it? In a nutshell, seek advice.
5 reasons to seek accounting advice on business windup
- There may still be things you haven’t thought of to turn the business around. Just because you can’t see the possibilities, doesn’t mean they’re not there. A seasoned business advisor, may be able to find a way forward you haven’t yet tried and can work with you to help you achieve it.
- A business advisor brings objectivity. Having a business advisor with an objective viewpoint will help you take the emotion out of any decisions you’ll have to make. They’ll help you understand the reason why your next set of actions are really necessary. And whilst it’s still a hard road to walk, it’s better having a companion to walk along side.
- They have a process that will help you make the best of situation in which you find yourself. If you’re feeling overwhelmed, knowing there’s a tried and trusted process with an end point can often take the angst down a notch or two.
- They’ve done this before – unless you’re a serial entrepreneur, you’re probably not aware of all the things that need to be done in order to properly close (or sell) your business from a legislative perspective. They are and they’ll help you get everything done.
- They can maximize your outcomes. No matter how dire things seem, chances are there are parts of your business are valuable – your IP, your mailing lists, your existing customers and your business’ assets. A good advisor will help you value those, find ways of maximizing their value and help you appoint a liquidator or buyer.
It’s not an easy time, but a good business advisory or accounting firm will help get you through as well as they possibly can.
If you’re struggling with your business or you’re considering closing your business – we can help. Even if you just want a conversation or a second opinion, please feel free to give either Greg or I a call on 6023 1700.