Learn how to write a letter closing a business so you can keep your customers, creditors and financiers informed of the situation. More than just a mere business announcement, a letter of business closure allows for vital communication and can help you liquidate inventory and prepare to settle outstanding debts.
Business Closure: Making It Public
When writing a letter for business closure, it is necessary to release the pertinent details concerning the closure. This serves a dual purpose: First, it gives your customers a chance to learn about your business closing and any impending liquidations they can take advantage of. Second, it gives your creditors ample notice and allows you to begin finalizing your business affairs. This can give you a head start in preparing for the closing of your business.
A business closure takes considerable planning and forethought, so your announcement should set a schedule that lets recipients know what to expect. Building a reliable timeframe will depend heavily on critical details, such as the size of the business as well as the business owner's personal role in the company, whether he is operating as a sole proprietor or as part of a partnership. Liquidating assets and hedging liabilities will require time that must be accounted for before the doors close for good. To ensure consistency, letters of business closure should be written and mailed as soon as possible so customers and creditors have time to prepare for the change.
Outlining And Writing
Many parts of this letter will seem familiar. The business-style introduction and closing should be implemented. The body of the letter should be in standard business block style. The contents of the letter should cover points outlined in your public announcement, including any crucial details that will affect your standing with creditors and regulatory agencies. Most important, include contact information if any creditors need to make claims.
Creditors Versus Customers
The business closure letter can be written in a general manner to address several purposes. Writing specific letters to address different audiences may be in order if certain sensitive information is inappropriate for one party but essential for another. Customers will want to know about important dates regarding liquidation sales and the final closing day. Creditors will be interested in knowing when you will make final payments on outstanding debts, close accounts and terminate contracts.
The process of writing a letter closing a business can help you clarify your plans as you prepare to shut down. The more detail you add, the fewer questions will arise, and your creditors and customers will feel that you are working to hold up your end of the deal.