Everyone is excited about starting a business, growing it, and being among the giant companies in the world. However, no one talks about shutting down. That is because most companies are quiet when shutting down since this was not the intention from the beginning. Startups fail, but life must go on.
Shutting down a startup you once had a lot of hope about is like grieving. However, if this is the last option, you must go through the process. Accepting the fact that your startup is going down is devastating. However, you need to know the best way to shut your startup down and move on with life gracefully.
Continuing with a startup that has already failed can waste time and money. You could keep it with the hope that things will change, but false hope can be unkind. Therefore, the best thing to do is to swallow the bitter truth and shut your startup down the right way. Here is what you need to do.
Get Professional Advice
The best thing to do if you think you are on the verge of closing your startup is to seek professional advice. If you have partnered with another business, a professional can advise you to dissolve instead of shutting down. They will also help you to know what you need to dissolve a business in Missouri for example. So, getting advice from an expert is the best thing to be sure you are making the right decision.
Inform Your Staff Early
Telling your staff that you are about to shut down the business may be the hardest thing to do. However, one point on how to close a business is informing your staff early. Understandably, you want to save your workers. However, if nothing else can be done, you will need to tell them to ensure they are not stranded. Informing them early gives them time to look for opportunities elsewhere.
Notify Your Investors
You have worked hard and put a lot of effort into getting investors and earning their trust. Unfortunately, it is time to hold that dreadful conversation with them. Maybe they already knew you were shutting down from how you performed. However, it does not mean you should not tell them. If you know how to dissolve an LLC in Nevada, then you already know how crucial it is to tell your investors about your finality.
Control The Media
One of your fears will be how this will turn out in public. However, you have the power to control the news. Ensure only the relevant information reaches the media. Create the narrative. And let everyone know your initial intention and how some of the things you set out to do did not work.
Handle The Legal Matters
Before you close the startup down, it can be a good idea to look at LLC termination vs dissolution. Check what every option involves and all the requirements. You will need to get your name off the bank account, credit account, and legal agreement. You must also file the final taxes and comply with all the formalities.
In The End
These processes are not easy. However, they are necessary if shutting down the startup is your finality. Move forward gracefully and try something else.