Closing Shop 101 (Week 7): The Final Touches

This week we officially wrap up our “Closing Shop 101” series. To date, we’ve gone through your options for permanent exit strategies (such as selling, hiring a manager, or piecing it out) as well as short-term leave solutions. Each option has it’s pros and cons, which we’ve tried to lay out for you.

We end the series with some final thoughts and considerations. Some are logistical matters you’ll want to cover. Others fall more in the “strategic planning” realm.

• Transitioning your clients. I’ve mentioned before that this series is primarily geared towards service-oriented businesses as opposed to product-oriented business. As such, there’s a different type of relationship we have with our clients…which means there’s a different way we have to communicate and take care of them. Be thoughtful and purposeful when planning how and when to tell your clients you are leaving. When I closed my private practice this spring, I handled each client in a different way, depending on their needs. Some I told sooner, others later. Some I helped hand-pick and train a replacement, others I provided a list of possible replacements. Each client had different needs and I tried to adapt my approach to best meet their needs.
• Paperwork and Phone Calls. There will be some extra legal and financial legwork you’ll need to take care off if you move or close down a business. This will be different for each situation. If you move to a different state, you’ll have some work to do to officially close your business in your old state (though this isn’t necessary. It may be an option to keep running your business out of your old state, even if your clients are in a different state. That’s a question for your attorney). If you had employees, you’ll have some unemployment insurance, worker’s comp, and state income tax paperwork to take care of. If you are completely closing your business, there may be some federal work (e.g. with the IRS) that needs to be taken care of. In a nutshell? Consult with your attorney and accountant and make sure you are legal and legit.
• Take a Breather. This is my personal recommendation. Closing a business is a major decision and requires a major transition–especially if it’s paired with moving! I highly recommend you take a little time to breath, re-group, and refresh before jumping in to your next endeavor.

If you have any other suggestions or questions, please leave a comment in the field below. And if you enjoyed this series, you’ll love the newsletter! It’s a free monthly newsletter sent right to your inbox and it’s chock full of information for you. Plus, I’ll send you a free little goody for subscribing. Click here if you’re interested.

Tagged as: employee, employer, Exit Strategy, Private Practice