As the COVID crisis drags on, there are many operators who are contemplating closing up shop and walking away. Before it was hard work and OK profits, not it’s still hard work and no profit for the forseeable future.
The best way to get out is to sell your business, and a good broker will help you to do that quickly. But what if that’s not possible?
Here are some resources that could be useful…
- The Australian Tax Office has a long checklist of what’s involved in selling or closing a business – tax, company issues, employee issues and business registrations.
- If you default on your loans and stop paying – Business Victoria goes through the options.
- Manage your creditors as fairly as possible – many of them are small businesses just like you, and unpaid bills make their life difficult. You don’t need more negative comments.
- Check your personal Credit Report – it could be affected by what you do.
- There are different ways you could terminate or break your lease.
- Understand what’s involved for staff and employers if a business goes bankrupt or into liquidation.
- Talk to a Small Business Financial Counsellor for advice and referrals. Your lawyer will also be an important source of advice and support.
- It’s important to know what’s involved in Bankruptcy, Insolvency, Voluntary Administration and Liquidation.
- Look after your mental health and wellbeing – this can be a very stressful time.
- Protect your reputation – there’ll need to be an announcement to staff and customers. Be clear and honest, and talk about how you’re moving forward. Keep in mind the many ways that word of mouth spreads.