Knowing How To Close A Business Requires Far More Than Putting Up A Few Signs
Running a successful retail store takes a level of commitment and perseverance to learn how to be successful, and when the store must come to an end, regardless of the reason, the same level of commitment to learn how to close a business must be there as well.
You’ve put your heart and sole into your business. You’ve spent countless hours giving it everything you had to make it successful. You’ve established relationships with many of your loyal customers. When you decide or are forced to go out of business because of economical conditions, family issues, legal issues, marketing issues, or some other reason, knowing the details on how to close a business should be at the forefront of your mind.
It is not uncommon to go through the process above. Nor is it anything to be embarrassed of. It happens every day, but when you get to this point in your business you must be savvier than ever before or you could lose you proverbial butt.
The reality is that, more often than not, successful businesses do not go out of business or close. They either continue on or sell as a going business to another family member or outside buyer, but this is seldom the case with a declining or sagging business. And even when a declining business DOES sell to another buyer as an ongoing business, it’s usually at a greatly discounted price.
So what are the alternatives for these small business owners that want or need to close their store, but can’t find a buyer to pay them what the business is worth? A store closing sale, of course. But knowing how to close a business profitably with a store closing sale requires far more than a few signs as many people think.
A store closing sale, done legally, is a one time affair. Meaning, you get one shot at it, and if you mess it up, then you stand to not only lose your shirt, but possibly your dignity as well.
There are strategic ways of making minimal price reductions on the right items and departments at the right times and at the right frequency to create as much profit as possible. There are also certain types of marketing and advertising that work better than others. And what about negotiating advertising rates? Yep, that can play a major factor in how much profit a business owner can make with a going out of business sale.
None of these issues include the liquidation of fixtures and equipment. They, too, need to have some specialized attention. So, in essence, aside from the need to actually run the business itself and all that requires, running a retail liquidation sale requires many different things to be managed.
Knowing how to close a business for profit is an art and science that transcends beyond the boundaries of regular daily retail. It’s far more involved than simply taping some signs to the windows and in the store if profit and speed are the number one objectives.