How to Bounce Back After Liquidating Your Business
Nobody goes into a business expecting it to fail. Many businesses do not even plan for failure due to unforeseen circumstances. So if you do find yourself in a situation where you need to permanently liquidate your business, where do you start? Admitting failure is hard enough, but how do you take the next step of picking up the pieces and planning a comeback? Before you even get to that stage, you’ll want to make sure to tie up any loose ends with your business and completely shut it down before you pursue other plans. Read on to discover the steps you should take to legally close your business and bounce back from failure.
Legally Closing Down
When liquidating your business, make sure to take the proper steps to legally close down. The last thing you want is unfinished business popping up and causing you problems when deciding to start a new company in the future or plan other goals. The process of shutting down your company is called dissolution, and the route you take will depend largely on the reason as to why you are shutting down in the first place. There are different types of liquidations depending on your circumstances, so make sure you are being fully transparent and not cutting corners in this regard. If your business is solvent and not forced to close due to debts, the process will be simpler. In this case, you can usually strike the business off of the Register of Companies as long as all conditions are met and there are no objections from those who may share an interest in the company.
Take Time to Assess
Once you have finalized the liquidation process and completely shut down your business, you’ll start to consider what direction you’d like to go next. Brainstorming business plans and assessing your strengths and weaknesses is crucial during this time. You may also draw on support and advice from your peers and others to determine which path to take next. Regardless of what you do, always take time to assess the situation and understand what went wrong before you jump into the next business plan. It’s easy to get carried away trying to make a comeback and push yourself back into success. Instead, ease yourself in the direction you want to go and don’t make rash decisions or rush into anything. Starting a successful business takes extensive planning and research, as you will want to better understand your industry, consumers, and the market.
Find Your Niche
In order to build a successful business and get started on the right foot, think about the industry you work or have experience in and determine if there are any potential market gaps that you could fill. Consider the location you want to start your business in as well. What kinds of people live there, and what are their interests? Knowing your demographic and potential customers can help you set up the right business and ensure it is successful. Ultimately, find your niche or who you cater to and use that to add value to your business.
Register Your New Company
Once you’ve got all the details worked out and are ready to get back into business, you’ll need to register your new company. Make sure that you have a creative and identifiable company name and other requirements such as a registered office, founding documents, and a SIC code. While you should already know the process from your previous business, it doesn’t hurt to familiarize yourself with the process once again so that everything runs smoothly. You don’t hit any roadblocks along the way. Check the rules and guidelines in your jurisdiction to ensure you are up-to-date with the procedures.
If you find your business succumbing to financial or unforeseen problems, it’s better to act promptly and deal with the problem. The last thing you want is to have even more problems during the liquidation process if you wait too long to act. While it isn’t an easy decision to make, the sooner you start the process of dissolution, the sooner you can start to move forward and ahead with your life.
Indeed, failure is sometimes inevitable, no matter how hard you try. So if your business fails the first time around, try not to beat yourself up. Ambition, optimism, and gratitude for the skills and experiences you have will get you back up off the ground running in no time.
For more information on liquidation services in Toronto, please call Michaels Global Trading at 888-471-5066 or contact us here. We understand the challenges that many companies face and can provide valuable solutions and resources to liquidate your business quickly and efficiently. Contact us today for a free consultation!