How to Liquidate Inventory
Liquidating an inventory generally means that one’s business is closing for several reasons. These most common reasons for such business closure are retirement of the owners or that the owner of the establishment is planning to go to other places or locations.
If you are one of these people who are closing their business for whatever reason there is, you will need to know the proper ways of liquidating your inventory so as to acquire your target amount of money.
In liquidating your business inventory, there are a couple of things that you will have to do so that you will not regret closing your business establishment. Here are the proper ways of inventory liquidation.
Value Your Items
First thing for you to do is to value all your furniture as well as the equipment and your fixture. You have to bear in mind that everything that you see in your establishment has value regardless if it is very old and is nearing antiquity. In connection to this, you will also have to know the current value of all the things that you have valued. If you have your own certified public accountant (CPA), you can ask for his or her help and advice in assessing the cost of the items that depreciated.
Communicate With Your Suppliers
The second thing that you must do is to cease on ordering any new inventory and items from your suppliers if you have decided to liquidate your business establishment. In this case, you must set a goal and that is getting rid of all the items in your business instead of bringing any additional inventory. If you have received new items from your suppliers because of your last orders, return these items. You will have to contact your suppliers in this situation and then figure it out with them the items that you can return. Typically, some of the suppliers will come and get the products. Some of them will also give you a refund from what you have paid. Check with the suppliers what their specific return policy is, just to be sure. This is because there are some of the suppliers that will issue only a credit instead of giving you monetary refund with all you have paid them.
Sell Your Assets and Advertise
The next thing that you must do is to sell all your assets so as to liquidate your entire inventory. You might acquire the full or entire market value for the entire inventory of your business. This will however depend on the time that you will spend on your liquidation process. If you will be in a rush to do the liquidation process, you will have to discount some of your assets in order to sell them in a more speedily manner. Advertise your liquidation but do not forget to protect the assets of your business. You will have to think about how your customers and employees are going to react when they get the news of your business’s closure.
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