Making the final decision to close a business is really hard on a company owner. You registered the business and worked long hours and dedicated your life to this company, only to wake up and realize that it is no longer a viable business model for various different reasons.
But how do you know when the time is truly right to closure business? We will take a look at various scenarios that will help you make this final determination. A company strike-off is never easy, and removing your company from the business register might not be your favorite choice, but it is necessary in many situations.
Are You Experiencing a Health Challenge?
One unfortunate reason to close your business is if you are experiencing some type of a health challenge. It’s difficult to run a company when facing a severe illness. And keeping up with the day-to-day operations becomes impossible in some cases if the health crisis is very serious.
At this point, you should have exhausted all of your options.
Have you asked friends and relatives to take over the company while you recover?
Have you asked a trusted employee to manage the business while you are no longer available?
Have you considered a hiring a replacement on a temporary basis to manage the day-to-day operations while you recuperate from your illness?
Or are you so sick that the doctors tell you that you will not be around much longer?
If you’ve answered no to the relevant questions above in regards to having someone manage the company while you recuperate, and you just couldn’t seem to find the correct replacement, then it might be time to consider closing your business. A company strike-off seems like the best thing at this point even if it might not be your favorite choice.
Are the Business Fundamentals Still Valid?
The next incredibly important thing to consider is the business fundamentals.
It’s quite possible that the products or services that you once sold are no longer relative to today’s world.
As an example, let’s say that you currently own a brick-and-mortar digital entertainment store that sells CDs, DVDs and other forms of portable media.
At one time not that long ago; this was an incredibly successful business to own. Companies like Best Buy, Sam Goody, Tower Records and other media conglomerates had thriving businesses during the 1980s, 1990s and even going into the 2000s.
As we all know, times and technology have evolved since then. Most people use services like Netflix, HuluPlus, Amazon Instant Video or they illegally download torrents of their favorite movies and TV shows. Buying CDs is a primitive thing of the past, and the majority of people listens to or watches their favorite videos on YouTube or other music sharing services.
CDs and DVDs, while they are certainly not irrelevant, are in much less demand than they have been at any other time in the recent past. So the huge conglomerates that run the large media companies that sell music and DVDs are slowly but surely disappearing one by one.
So think about the fundamentals of your business. Do you offer a product or service that is no longer relevant? If so, it’s time to either change your business model or seriously consider closing your company. Hire bookkeeping services to help with the final shutdown and make sure that you capitalize on the full tax advantages afforded to you.