Essential Steps Towards a Profitable Business Liquidation
Most companies will face financial hardships at some point during the business lifecycle. If a company has outstanding debts that it needs to pay off, then one way to do so is via business liquidation.
The process, however, can be quite time consuming. There are steps that you can take that will allow you to accelerate and simplify the process. Here, we will provide the essential steps that will help ensure that your business liquidation is a profitable one.
Inspect your assets
Depending on your enterprise, it may be difficult to find assets that you can liquidate. Begin by going over all of the inventory that you have. You should also assess all of the assets that your company utilizes in the production of inventory.
You may also discover assets that are precious or essential to your company, but that you do not use frequently, if at all.
Prepare your assets
It is one thing to inspect your assets. It is a whole other thing to prepare them for liquidation. If your company owns cars, production equipment, office furniture, inventory, computers, and real property, then you may be able to liquidate your assets.
However, if all of the assets that you wish to sell are pre-owned, then you may need to spend some money and time fixing your used assets. By fixing your assets, you will help make them more attractive to prospective buyers. As the saying goes, “You need to spend money to make money,” and liquidation is no exception.
Organize your paperwork
It is vital that you have all of the necessary documents on hand. All papers and files should also be in order and all dossiers that are related to inventory management should be prepared before you begin the liquidation process as well.
By having all of the relevant documents, you will be able to maximize or optimize the sales rate of all of your assets.
Get help from appraisers
We would suggest that you hire an appraiser. They will be able to provide you with an accurate appraisal of all of your business assets. A restoration professional will be able to increase the rate of gadgets, tools, and equipment as well.
Your assets will receive a better grade due to their superb performance and longer lifespan. It is important to know the actual value of your assets before you try and liquidate them in order to maximize your return on investment.
Decide who you want to sell to
Before you actually begin liquidating your assets, it is essential that you know who will be interested in buying them. Your business type will determine who will be interested in buying your assets.
If you are the proprietor of a retail outlet, then your regular customers could buy your items at a discounted price. Reach out to friends, family, affiliates, and clients in the community to try and find other people who are interested in purchasing your products.
Hire a reliable liquidation company
Liquidators are experts at their craft. They will be able to start a sale in a very short period of time. They will also create a customized plan that caters to your unique needs. Once the plan is devised, they will execute it in rapid succession.
However, not all liquidation companies are the same. Most will promise the moon, but underdeliver in reality. Take the time to perform the necessary due diligence. Ask friends, family, and trusted members of the community if they can recommend a liquidator for you.
Check reviews online to help you make up your mind. Compare and contrast rates, services, and ratings before moving forward into the liquidation process.
There is hope
If your business is in dire straits, then you may be thinking of a way to generate cash flow as soon as possible. Liquidation may be a viable option if your corporate assets can quickly generate income for your business. The revenue can be used to pay off your creditors or to fund other business plans. For some companies, liquidation may be the only option available to them.
For example, if you are forced to close your business for good, then liquidation may be one of the last steps towards bankruptcy. It can be difficult to give up on a business and start on a new path, but it may be the wisest business move available.
While it may be tempting to simply sell all of your assets on Craigslist, Kijiji, Facebook Marketplace, Amazon, Etsy, and/or eBay, some business assets may be hard to liquidate using classified or auction sites.
You may also have to deal with seller fees, shipping costs, and fraudulent buyers. A quicker, easier, and more effective way to liquidate your assets is to work with a liquidation company, as they specialize in liquidating business assets.
