When you own your own business, the purpose of running that business is going to be to make money, expand and be successful. This is all well and good, but unfortunately, sometimes things simply don’t work out that way. A lot of businesses often fall on hard times when they are trying to be successful thanks to the economy, the running of the business or other circumstances completely out of that business’s control. The fact of the matter is, especially in today’s climate, there are a lot of businesses that end up entering into liquidation.
If your organisation has fallen on hard times and liquidation is looking like the most feasible option then you are likely curious about some of the best ways that you can liquidate your business. There are many mistakes that organisations often make when they are liquidating their business, and these are easy to avoid so long as you keep them at the forefront of your mind when operating. These common mistakes are going to be discussed in more detail below so be sure to learn them and keep them in mind when liquidating and when working with a liquidation business.
Not Asking Others for Opinions
Anyone who knows anything about liquidation will tell you that your friends and acquaintances are incredibly valuable assets when it comes to you getting some information on not just the liquidation process but on who you should be using to help you through that process. Even if you are of the opinion that none of your friends have had any experience with the world of liquidation, they might know someone who has someone they can refer you to. Having people with experience in the process nearby is great given you will likely have a lot of questions and sometimes just want a simple answer.
It’s important to not make the mistake of avoiding asking people you know for their recommendations because no matter how much research you do, word of mouth and personal recommendations are always excellent. The recommendations you receive tend to be much more reliable and credible, and you will be a lot more likely to be informed about organisations you should look to avoid. Even if you are just doing some regular research on your own, you should ask around about whether someone has had any prior experience with the businesses you find, or whether they know anyone who has. If you are using a local or popular vendor then chances are you aren’t going to struggle to find someone who has prior experience.
Not Looking into the Different Payment Options
Unfortunately, as is the case in any industry, some liquidation companies simply aren’t legitimate and only want to rip you off. As such, you need to put proper research into the businesses you are looking at working with, specifically, consider what different payment options they offer for their services. You need to look for a business that accepts a few different payment options. Ideally, the business you end up working with will accept both debit and credit cards as these are some of the more manageable forms of payment.
Not Asking the Liquidation Business for References
Another pretty common mistake that a lot of organisations wind up making when they are choosing a liquidation business to work with is not asking said business for some references. You will likely already have some element of trust vested in them to get this far but the fact of the matter is, you can never be truly sure about how authentic they are until you get the chance to see some of their references.
Get some from the liquidation business and then contact a few. You can ask those references about what their experience with the liquidation business was and subsequently, whether or not they would recommend them. References are better than testimonials as testimonials are often pre-written and signed, when you get a reference you are truly getting insight into the business.
Not Looking into the Experience or the Price of the Business
It’s important that you take sufficient steps to avoid any kind of fraud and one of the best ways to do this is by not working with a vendor who costs more than you see on the market or does not have any kind of experience. There are a lot of suppliers out there who charge far too much and make a high profit compared to the actual quality of the service they provide. Some businesses don’t have the right experience so they can’t operate with the interests of both your business and creditors working in tandem with one another, which is one of the most important factors that should be present within a liquidation business.
Looking to Work with Too Many Businesses
You should certainly explore the possibility of working with a few different businesses but don’t overwhelm yourself with options otherwise you will just make that final decision all the more difficult. You need to be strict with who you genuinely consider working with. By doing this, you are making it a lot easier for you to pick the right people to handle your business’s needs. Make a longlist and then be strict with cutting it down, once you have cut it down you can reach out to the references of the last few businesses you are considering. This will make the final selection a lot easier in what can be a stressful period.
Are You Looking for a Liquidation Business?
If your organisation is currently looking into liquidation and needs a business to guide you through the process, then you should consider working with Simple Liquidation. We have worked with a plethora of clients and have a team of experts who will sit down with you to learn all about your business and your situation so we can provide the best advice moving forward. If you have any questions or require any further information then do not hesitate to get in touch.