13 Tips | What To Do If Your Business Shuts Down
Preparing for the COVID-19 shutdown before it comes could help you restart your business again with fewer losses. You should know what to do if your business shuts down due to the COVID-19 pandemic. The temporary closing of your business is different from a permanent shut down. In a permanent shut down you get rid of everything but in a temporary shut down you need to be prepared when you open back up again
Depending on the type of business you own you may just need to shut down the physical property but could continue your work from home as a lot of financial businesses. But for retail businesses, there is no option for work from home and may need to shut down for a while.
1. Work with Your Vendors
Many Companies which are facing financial difficulty during the COVID-19 pandemic have been issued statements from service providers, banks and utility providers. If your establishment is not running and you aren’t able to pay your bills in the coming months talk with your vendors and discuss what you can do. If you are planning on shutting down you should let them know you won’t be receiving their products for a while.
2. Hold on to your tax payments
Tax payments for your company are regularly paid every year. So if you have been saving some money aside for the taxes you can keep it back. The IRS has issued a 90 day extension period for all small businesses. This means that the tax returns for 2019 have gone from April 15 to July 15 2020. So take this time and prepare yourself for your business shut down.
3. Client Communications When Closing Your Business
You need to explain to your clients the situation that your business is in right now. Post this information on your website and all social media accounts. Not knowing how long you are going to stay shut down. Explain that due to the pandemic you are not shutting down indefinitely. Communication is a key to any industry. It is important to know what to do if your business shuts down.
4. Consider emergency loan options
Many Loans are given by the US Small Business association to help progress your business. There are a number of loans that the US government has been giving small companies. They are giving it to them hoping that they can bring their businesses back up. As the small businesses profit so does the economy of the country profit.
5. Look for government relief packages
Due to the COVID-19 pandemic many small businesses have been affected all over the US. To help such businesses the federal government has recently passed a relief bill. This coronavirus relief bill that has been passed will provide a major economic stimulus for these businesses.They are sending relief checks to all the small businesses which have been affected by this pandemic.
6. Store Security
Make sure to keep all your security devices up to date, if you don’t have one you should probably get one. Remove all personal valuables from the store. Don’t leave any money or high priced items in the store before shutting it down. Even if the business is shut down you may still have items in your locked down property. It needs some security to protect it while it’s closed.
7. If Possible Start Work From Home
Now is the best time to try out work from home whether you have done it before or not.Unless you plan to Permanently or temporarily shut down the business. Every Business has been finding alternate work methods or the business is shutting down itself. You may need to hire commercial movers in Encino to help you move your items from your property.
8. Move Items from your workplace
If you are moving your work online or closing it down temporarily you may need to move some stuff from your commercial site to your home. You need to hire a moving company in Los Angeles to help you with this process. As a business owner when the business shuts down you need to empty all your belongings and clear the area.
9. Thorough inspection of your floors
Note what needs attention before you close. Make sure to remove all valuables within the building. Do a deep clean. It is important for businesses to do a thorough inspection of all of their floors to make sure nothing goes wrong once they shut down.
10. Keep Your Employees Posted
It is important to keep all your employees up to date. Make sure to let them know you are shutting down. It is important to give them information for the COVID-19 safety. Make sure to give them the information they need for stimulus checks. Whether you are moving online or are temporarily closing the business or shutting it down permanently.
11. Liquidate your business assets
You need to make a list of all the property your business owns and all the money you owe or are owed from someone. You need to figure out the price of items. Your list should contain the information of the following items:
- business equipment, such as computers, phones, cash registers, and credit card machines
- office furniture, art, and supplies
- real estate
- security deposits with landlords, utilities, or taxing agencies, and
- prepaid insurance premiums you can get refunded to you.
12. File IRS Form if you sold assets
When Shutting down your business you need to sell all your assets either to a company or individuals in order to empty your storage as much as possible. By doing so you are required to sign an IRS form containing all the information regarding the items sold in order to formulate a plan for you.
13. Consider bankruptcy
Bankruptcy is more of a last resort move, though sometimes it’s the only option. It is a legal process designed to help individuals and businesses get a financial fresh start by wiping out their debts or making a more manageable repayment plan. If anything happens you can uses these tips to help you in what to do if your business shuts down. There are different types of bankruptcy so you should know what type of bankruptcy you should apply for.