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Publication: SoHo News and Tips
Getting Help When Closing a Business

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                   SoHo NEWS & TIPS
Helping You Make the Most of Your Small Office/Home Office
                    SoHoTIPS.com
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Greetings,

When closing a business, whether or not to seek professional 
help is a something you must consider. Hiring someone to help 
take care of your left over inventory may cost you more, but 
there are other advantages to consider. Check out more details
in the article below.

Best,
Mandi

P.S. You can discuss this issue or any other topic in the 
new SoHo News & Tips forum. Check it out here...
SoHo News & Tips Forum

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- The government released data this morning that shows that 
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- Crude oil fell on signs mild weather will curb heating 
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inventories remained above seasonal averages.

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Getting Help When Closing a Business 

Liquidators are experienced at advertising sales, enticing 
shoppers to show up, and pricing merchandise appropriately so 
it sells in a timely fashion. Small shop owners, on the other 
hand, may not have the expertise or adequate cash to arrange 
such an orderly sell-off on their own.

This decision also may depend on your financial and legal sit-
uation, and you may want to consult a lawyer beforehand. If, 
for instance, you pledged your inventory as collateral on a 
loan, the creditor may want a say in how you liquidate the 
goods. Or, if you're planning to file for bankruptcy 
protection due to overwhelming debt, the cost of hiring a 
liquidator is probably worthwhile, says Bob Eisenbach, a 
San Francisco bankruptcy lawyer.

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If the decision is purely economical, then you should pencil 
out your best estimate of what it will cost to hold the sale 
yourself, factoring in advertising and any additional rent or 
payroll you might owe if it takes you longer to sell the 
goods. Compare those estimated costs of doing it yourself with 
the price quotes you're getting from liquidators. Also, 
realistically assess how successful you'll be at selling the 
goods yourself without professional help.

"It's December, and if her store does particularly well around 
the holidays she might want to do it herself," Mr. Eisenbach 
says. Otherwise, a liquidator might be able to do it more 
efficiently, so you may actually reap more profit by hiring 
one.

Some liquidators will actually buy the inventory, taking on 
the entire burden of selling it themselves. Others charge a 
flat fee or a percentage, such as 25%, of gross sales. Some 
liquidators include advertising in their fees, while others 
expect you to pay for it.

startupjournal.com
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DID YOU KNOW?

Faxing is great in that it transcends all time 
zone barriers, but beware the cost of sending 
faxes internationally because these costs can 
mount quickly. Using the Internet and e-mail for
international communication is much cheaper.

So what did you think about this issue? Drop me a line and let 
me know at mailto:mandi@gophercentral.com 

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