Closing a business often requires the equipment, products, and any other assets to be sold. This helps pay off debts to ensure the business owner doesn’t owe further money once the business is closed. If you’re planning on closing a business, make sure you know the steps to take to liquidate your assets before closing. This will help you keep everything organized so it’s possible to get more money for any assets that need to be sold.
Determine What Needs to be Sold
Begin by creating an inventory list of all assets that need to be liquidated. Rabin.com recommends creating a list with a detailed description of each item, as well as other information like purchase information and warranties. You’ll use this list to determine how to sell equipment and products as well as to track the sales.
Prepare Items to Sell
Equipment being sold should be in good condition to get the most money for it. Check any equipment that needs to be sold to ensure it’s in great shape. If necessary, paint or repair the equipment. This will help you get more for the equipment that needs to be sold.
Determine the Value of Items to Sell
Check out various sources to determine the value of any items that need to be sold. This should not be the full value of the equipment or other products if they were purchased new. Instead, it should be the value that you can reasonably expect to get if you sold the products today in the condition they’re in. Online resources can make it easier to determine the value of used equipment, but it may take some research to figure out how much you can get.
Check Out Different Ways to Sell
There are many different ways to sell used equipment and other products today. When you’re ready to think about selling your equipment, look into all of the different ways you can sell it. Products can often be sold to customers at a discount, encouraging the customers to buy more products. Large equipment and vehicles can be sold at an auction. Other items, equipment, and any other assets might be sold to a private buyer who is interested in buying the business as a whole or who might need the equipment and products to start their own business.
Create Detailed Records of Sales
Use the inventory list and update it as needed to create a record of the sales. A wikihow.com article on selling business assets suggests creating a list that includes the date sold and the amount of money received. This list makes it easier for you to do your taxes at the end of the year.
Start going through your assets today to determine what you need to sell, how much you could obtain for it, and how you’ll want to sell everything. Start planning for the closing early on to ensure you have plenty of time to sell all of your equipment or products and to make sure you know how you want everything to be done. With the right planning and preparation, you may be able to get more money for the assets you need to liquidate.
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