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Yesterday I talked about signs that it might be time to close your craft business. Today, let’s look at what you need to do to shut down your business.
Basically, you’ve got two options: Liquidate your supplies and inventory or sell your business. In general, if your business is not profitable (you aren’t making any money) I’d recommend liquidating your supplies. If your business is profitable (making money) I’d recommend selling it to another crafter.
A Checklist of Things to Do to Close Your Business – Liquidating
- Make the decision to close your business. Don’t take the decision lightly, and definitely don’t feel guilty about it.
- Sell off all unnecessary supplies and inventory. Host a ‘Going out of Business’ sale.
- Pay off any remaining business debts. If your business is closing, you’ll want to make sure you get rid of debts and credit card balances related to your business.
- Say goodbye to your customers. This could be as simple as a notice on your website or on social media or a goodbye to your email subscribers.
- Let suppliers know you are closing. If you have relationships with wholesale suppliers, drop them an email to let them know you are closing.
- Unpublish social media pages. You don’t have to delete them, but I would recommend unpublishing them.
- Unpublish your website and remove product listings online. This includes any marketplaces you sell through like Etsy or Amazon Handmade.
- Stop all automatic billing services and close accounts. Services that you might need to cancel include accounting programs, website hosting plans, photo editing software subscriptions, mailing lists, domain names, and so on. Additionally, don’t forget to close any business accounts you may have.
- Dissolve your company. If you are a registered company, you’ll need to contact your state, county, or city to find out how to dissolve your business. If you do not officially dissolve your business, you will still be responsible for tax and business filings.
- Keep the records. You’ll want to keep all business records on hand for use the following tax year.
A Checklist of Things to Do to Close Your Business – Selling Business
- Make the decision to close your business. Again, there’s no need to feel guilty about it.
- Decide on a price for your business. Either sell off just the business or your business and your remaining supplies. Be prepared to back up your asking price with business documentation. Also, be clear on what is included with the business sale.
- List your business for sale. You can sell it through crafting groups, online marketplaces, Etsy, and more.
- Get documents. Create or obtain documents that spell out the purchase price, date of transfer, and what is being transferred to a new owner. I’d recommend having an attorney draw up a document for you and your buyer.
- Let customers know. A quick note to your customers about the ownership changing hands is usually sufficient. Don’t forget to thank them for their support and get them excited about the new owner.
- Transfer everything. After you’ve received a cleared payment, you’ll need to transfer your website or shop to the new owner. Don’t forget to also transfer social media pages, subscriptions, and email addresses.
- Cancel/close anything not being transferred. If it isn’t being transferred to the new owner, don’t forget to close or cancel it. This includes bank accounts and credit cards.
- Contact your state/county/or city. Depending on your agreement with the new owner, you may still need to dissolve your company in your state/county/city.
- Be available for the new owner. Likely, the new owner will need a little bit of training or support to get started. Be available for them for a predetermined period of time.
- Keep the records. Of course, keep all records of your business and the sale filed away until the next tax season.
Closing your business can be a lot of work, but once it’s done you can return to your life. Or, move onto your next big thing.
Help another crafter out and save the image below to Pinterest.