Common reasons cited for business failure include poor location, lack of experience, poor management, insufficient capital, unexpected growth, personal use of funds, over investing in fixed assets and poor credit arrangements. Sometimes even a profitable business decides to close its doors.
What to do when your business shuts down?
- Make the toughest decision.
- Prepare for an orderly and strategic shut-down.
- Get all decision-makers on board.
- Let your staff know.
- Collect on outstanding accounts.
- Alert your customers and begin closing accounts.
- File dissolution documents.
- Take care of your tax requirements.
What do you say when a business closes?
- Tell the reader the date the business will close.
- Inform the reader of anything they need to do (such as pick up their dry cleaning, pay off their outstanding bill, or come in for the going out of business sale)
- Tell the reader where to direct their questions.
Can a company shut down?
Business owners can close their businesses, whether temporarily or permanently, at any time they choose, provided that they take the appropriate steps to ensure the protection of employees and corporate partners, if applicable, as well as service providers, customers and vendors with outstanding orders.
How do you revive a failing company?
- Change your mindset.
- Perform a SWOT analysis.
- Understand your target market and ideal client.
- Set SMART objectives and create a plan.
- Reduce costs and prioritize what you pay.
- Manage your cash flow.
- Talk to creditors, don't ignore them.
- Organize your business.