mark in tx
New Member
Just wanted to share some lessons learned about recently shutting down a sign shop.
Making the decision to shut down or sell your shop should be made as dispassionately as possible.
After a few years you can tend to forget to make a business decision, you start to think about how the business is running in emotional terms ie. "I have put my heart and soul into this", "I bet my future on my shop", etc... instead of "I have had 2 quarters of 40% sales decline and the attempts to increase sales have not been successful." "At the current monthly Net I will be dipping into savings to meet payroll within 2 months" "Losing my biggest wholesale customer has cost X amount per month and the newly acquired 3 wholesale customers have not filled that gap."
Don't be afraid to get outside opinions from other business owners, accountants or even SBA.
If you are leasing or renting your shop space and you decide to sell your business, it is only worth the equipment and supplies you have on hand.
Unless you have contractually obligated production sales your customer list does not guarantee the new owner will be liked or trusted or given the time of day by your customers. Even contracts can be broken by enough lawyers.
The equipment is worth what people are willing to pay, not what you think it is worth.
Your lease may not be able to be taken over.
Until the money has changed hands and the sale contract is signed, buyers can and will change their mind the day before or even the day of the anticipated sale of the business.
The wonderful company that sold you the equipment originally may not buy equipment at all.
Suppliers will give you absolute bottom dollar for your equipment. That is a good thing to know though as it helps your knowledge to true market value.
Don't mess your employees over! Take care of them.
Move heaven and earth to get them that last paycheck. Call the other shops around town and let them know you have good people that would make a good fit for them. If you had 401k, or any other benefit programs for your employees get them the information and the contacts they need to handle those benefits.
Also, you just might have an employee or a group of employees that might be in a position to buy the business!
Utilities, insurance, alarm service, internet, subscriptions, credit card machines, etc...
You can't ignore them. They want to get paid and they will come after you to meet contracts.
You are not alone!
You might be surprised at how many people will offer moral support, you will need it. You might be surprised at how many people will try and work with you, nobody wants to see your dream die. Leasing agents, insurance reps, merchant services, suppliers all will try their best to help you if they can, just be honest with them.
Sometimes just moving out of a retail space and setting up in your garage can cut the bills enough to continue the business.
Even if you have to put all the equipment in storage and get a job at the liquor store, you still have options.
Life goes on, doors close and open.
At least you didn't open a restaurant and lose 3 million dollars, am I right?
Making the decision to shut down or sell your shop should be made as dispassionately as possible.
After a few years you can tend to forget to make a business decision, you start to think about how the business is running in emotional terms ie. "I have put my heart and soul into this", "I bet my future on my shop", etc... instead of "I have had 2 quarters of 40% sales decline and the attempts to increase sales have not been successful." "At the current monthly Net I will be dipping into savings to meet payroll within 2 months" "Losing my biggest wholesale customer has cost X amount per month and the newly acquired 3 wholesale customers have not filled that gap."
Don't be afraid to get outside opinions from other business owners, accountants or even SBA.
If you are leasing or renting your shop space and you decide to sell your business, it is only worth the equipment and supplies you have on hand.
Unless you have contractually obligated production sales your customer list does not guarantee the new owner will be liked or trusted or given the time of day by your customers. Even contracts can be broken by enough lawyers.
The equipment is worth what people are willing to pay, not what you think it is worth.
Your lease may not be able to be taken over.
Until the money has changed hands and the sale contract is signed, buyers can and will change their mind the day before or even the day of the anticipated sale of the business.
The wonderful company that sold you the equipment originally may not buy equipment at all.
Suppliers will give you absolute bottom dollar for your equipment. That is a good thing to know though as it helps your knowledge to true market value.
Don't mess your employees over! Take care of them.
Move heaven and earth to get them that last paycheck. Call the other shops around town and let them know you have good people that would make a good fit for them. If you had 401k, or any other benefit programs for your employees get them the information and the contacts they need to handle those benefits.
Also, you just might have an employee or a group of employees that might be in a position to buy the business!
Utilities, insurance, alarm service, internet, subscriptions, credit card machines, etc...
You can't ignore them. They want to get paid and they will come after you to meet contracts.
You are not alone!
You might be surprised at how many people will offer moral support, you will need it. You might be surprised at how many people will try and work with you, nobody wants to see your dream die. Leasing agents, insurance reps, merchant services, suppliers all will try their best to help you if they can, just be honest with them.
Sometimes just moving out of a retail space and setting up in your garage can cut the bills enough to continue the business.
Even if you have to put all the equipment in storage and get a job at the liquor store, you still have options.
Life goes on, doors close and open.
At least you didn't open a restaurant and lose 3 million dollars, am I right?
