| This current recession in 2008 and 2009 is | | | | the profit that allows them to keep their doors |
| marked by how low the economy has gone, the | | | | open. However, some of these businesses are |
| increase in unemployment, but most frustrating of | | | | rich in assets. If this is the case, a real option is to |
| all, how long it has taken before the "green | | | | manage down the assets to either keep the |
| shoots" appear. If your business is struggling and | | | | business going or get the best price possible for |
| you think your only option is to close the door | | | | the assets. Here are some suggested strategies. |
| and hand the keys back to the landlord, here are | | | | If the business has a lot of excess inventory but |
| some things to consider. | | | | limited cash, move the excess inventory. This |
| First, it's rarely as simple as closing the door and | | | | means going through each piece of inventory to |
| handing the key back to the landlord. If your | | | | make sure it's in good condition. If its condition is |
| business has a lease you obviously need to | | | | questionable, discount it but get it sold. Better to |
| discuss the situation with the landlord. If you have | | | | have a few dollars in the business and free up |
| a good relationship and feel you can handle it on | | | | some space than have it sit around and collect |
| your own to save hiring help, take care as you | | | | dust. This is especially true if the business is |
| handle the issue. Bear in mind the landlord is no | | | | paying to store any inventory as costs can be |
| different to you. They lease the real estate to | | | | reduced by eliminating unnecessary storage space. |
| make money. If you close the doors, they need | | | | Most buyers are interested in two things when |
| to find a replacement for you which may take | | | | buying a business; cash flow to service debt and |
| time to achieve. This can be a talking point with | | | | provide an income to sustain the buyer's lifestyle |
| the landlord as you may be able to bring a tenant | | | | and potential. Buyers are not excited about buying |
| to replace you. If this is the case, make sure this | | | | a business and managing it down to a smaller |
| is correct as the landlord may become frustrated | | | | business. If you own a business that is challenged |
| if the person changes their mind. Similarly, the | | | | by cash flow and limited potential, your buyer |
| landlord is not required to accept the person you | | | | may be someone in the industry who is looking to |
| bring so be aware the landlord has options. | | | | add the assets of your business to their business |
| Second, and this is the main reason for this article, | | | | and therefore take you out as a competitor. |
| some businesses are cash poor and so are | | | | These buyers can be harder to find and they are |
| struggling to keep their doors open. That is, they | | | | almost always only motivated by paying as low a |
| are unable to generate enough sales to produce | | | | price as possible. |