At some point, it may become necessary to liquidate business assets. This can be done for many different reasons, but the end goal is typically to make as much money as possible from the sale of assets. When liquidation is needed, it is important to go through each step carefully and find the right way to liquidate to get as much money coming in as possible.
Determine What Needs to be Liquidated
What are assets that can be sold to bring in money? Before liquidating your shop’s assets, take the time to think about everything that can go and how much it’s worth. Do not think about the new value for items, as used items aren’t going to bring in as much. However, assess the current state of equipment and other assets, then determine how much they are likely worth in today’s market. This makes it easier to get a good idea of how much money can be made by liquidating assets.
Set Goals for the Liquidation
The goals for the liquidation may depend on the reason for it. In some cases, liquidation is done as part of shutting down the business permanently. In other cases, it’s done as a way to pay off debts and get the business back on track. Think about the end goals for the liquidation, how much money needs to be made, and how to get to that point. Setting clear goals makes it easier to track how everything is going and to know when to make changes, if needed, to liquidate assets faster or try to bring in more money.
Consider Different Liquidation Options
Liquidation can take on many different forms depending on the type of business, the assets to sell, the preferences of the business owner, how quickly they need to sell, and a lot more. Some of the most common ways to liquidate assets include the following.
- Auction – An auction can be a great way to get rid of assets quickly, but the income from the liquidation can be low. This is best for items like equipment or vehicles that need to be sold quickly.
- Online Marketplace – An online marketplace can be a great way to sell almost any type of asset, but it can take time for everything to sell. Each item needs to be listed separately, so it can take a while to get this set up.
- Liquidation Sale – A liquidation sale involves putting everything on sale and allowing anyone in the public to come purchase items or bid on them. This is a great way to sell items quickly, but it’s possible there will still be things left over after the sale. Typically, the percent off is low at first and increases over time to sell the rest of the items.
- Employee Buyout – If assets are something employees will want to purchase, it may be beneficial to have an opportunity for them to purchase items before they go on sale to the public. This is often done before a liquidation sale to give employees access to bigger discounts.
If your business needs to liquidate assets, take the time to learn more about how it works and what might be the best options for your business. With the right help, it may be easier to liquidate everything and bring in as much as possible. Talk to the experts now to learn more.
