Most business owners don't begin a business with plans to one day sell off all their assets and close the doors forever. Unfortunately, in today's market it happens often, with very little information available to assist proprietors in how to start or begin the actual process. This unfortunate fact is quite disconcerting considering that most likely, a good portion of the owner's lifetime savings is tied up in the inventory, and that turning this inventory to cash can be critical to his or her financial future. Here are some tips aimed at helping proprietors liquidate their assets and exit their businesses: 1. Allow sufficient time: Businesses ideally will need to allow enough time for furniture to be evaluated, disassembled and removed. Many businesses will start planning their relocation up to a year in advance but often leave their furniture removal as an afterthought. Many times it's not possible to anticipate a last minute choice, but good time management helps to ensure the maximum value of the furniture assets by giving the liquidation firm the time necessary to find the best secondary buyers. 2. Select a good professional: Many businesses will hire professionals that are not office furniture liquidators. A good furniture liquidator will understand all the details involved in the process: how long it will take, how much it will cost, how to work with the building and its management team, how to ensure a company's leased space is ready to turn back on time, and how to maximize the value of the existing furniture. Liquidators can usually start a sale in a relatively short period of time and develop a plan tailored to fit your business. But you shouldn't choose the first one you find on the Internet. Evaluate each of them carefully before making a decision. 3. Take inventory: It's common to assume that preparing a line by line inventory of every piece of furniture enhances the value of the liquidation of assets. However, it's not really necessary to incur the cost of this service if you plan on using a liquidation service. Any reputable liquidation company will desire to perform their own inventory check and evaluation during a walk through. This inventory check will become a part of their proposal. If you decide not to use a liquidation professional, preparing a current inventory of your business assets in preparation for your sale is an important first step. Try to include photographs, serial numbers, and a brief description of the condition of each item; doing so might save you considerable headaches, especially if you're later asked to explain your sale to creditors or the IRS. 4. Should you move furniture to storage or liquidate?: Many businesses don't understand and will often over look the total costs involved in the process such as; removal, labor costs, transportation costs, unloading costs, damaged product, storage fees, reloading costs, transportation costs to the new location, and installation. With a liquidation, the moving costs are typically incorporated by the liquidator and without any ongoing storage costs. 5. When the whole is worth more than pieces and parts: It's beneficial to consider liquidating the entire inventory and have it be evaluated as a whole in order to maximize a best final return. Piecing off and selling of select items to "specialists" may often result in an overall loss of value to the business. The "cherry picking" of furniture often ends up leaving the less desirable pieces and typically won't offset the additional cost of removing the lesser valued furniture items. 6. Hire a furniture wholesaler vs. a furniture broker: It's typical of many brokers to not commit to removing furniture until after they have it sold. Depending on your circumstances, your business can run a risk of lease violation if the deadline is missed. A furniture wholesale liquidator will commit in the proposal to purchase, incur all labor costs, and remove the furniture within a specified time frame. Be sure to ask questions so you understand what is to be expected of your liquidation specialist whether they are a broker or a wholesaler. If you are interested in obtaining a free quote for liquidation services, contact us today at (503) 780-9500.
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