If you've decided that's time to close your business, you'll need to do something with your equipment. The equipment that you used for your business are valuable assets that can be liquidated for cash. If you've got debts that need to be satisfied prior to closing, liquidating your assets is a great way to take care of those debts. If you don't have debts, you can use the cash for other purposes, such as beginning a new business venture. Before you start liquidating your assets, however, you want to make sure you take the right steps. Making mistakes during the liquidation process can leave you short on cash, and added benefits. Here are four important steps you should take before you begin the liquidation process.
Identify Your Assets
Whether you're in a hurry, or not, you need to slow down long enough to identify your assets. Not knowing what you have could cause serious problems during the liquidation. Use a journal to make notes about every piece of equipment you own, including the condition that it's in. You should do this throughout your office.
Take Care of the Repairs
When you start liquidating your assets, you'll want to get top dollar for your equipment. That will be difficult to do if your equipment is dirty or broken. To make sure you get what you want out of your equipment, take care of the repairs before you begin liquidating. Taking the time to get your equipment in clean, working order will ensure that you get the full value for what you're trying to liquidate. It's also a good idea to keep records of the maintenance. Thorough maintenance records can increase the value of your assets.
Maximize Your Benefits
If you're only thinking about the cash value of your assets, you might be missing out on some much-needed benefits elsewhere; specifically the tax benefits. If you've got a tax bill coming up, use some of your business equipment to offset the amount you owe. Making charitable contributions of your assets may just give you the tax break you need, especially now that you're going out of business.
Appraise Your Inventory Prior to Liquidation
You may think you know what your assets are worth, but if you can't prove it, you might not get the full value. Before you liquidate your assets, you need to have everything appraised. Having an accurate appraisal will give you an accurate starting place when setting the price for the sale.
Don't lose out on a good source of revenue. If you're going out of business, take the time to liquidate your assets. If the process leaves you feeling like you're in over your head, be sure to contact an asset liquidation service, like 2NDGEAR, near you.