When a Sydney business fails, it can be a highly emotional and stressful time for the owner. The facts are that new business ventures have a tough road ahead if they are going to succeed and not all new business ventures get off the ground the first time around. The key thing to remember is that nothing is forever, and everything is a business learning.
When you come to the realisation that your Sydney retail store is not performing, that you are ready to retire, or you have a new venture which takes up your time, then there are some essential tips to closing a store with the minimum of disruption, stress and financial loss. Below are our practical tips to close down a retail store.
Planning is key
A plan is essential to the smooth winding up of a business and by writing everything down, you can slowly prioritise and put dates in place. Tasks for consideration are:-
When is the lease up?
What are the terms of the lease?
What stock do I have?
Can I return any unopened stock?
What items can be put on sale
When should I start my sale?
What notice do I need to give staff
It may seem daunting, but it’s amazing just how much better you feel knowing you have a plan of action.
A sale is a great way to not only reduce stock but to bring in as much revenue as possible before the store closes. If you have been in business a while, show your loyal customers some love with a pre-sale event for them. You can also upsell with sales such as ‘buy a dress, get a free scarf’, or ‘buy a 3-seater couch for the price of a 2-seater’. Advertise as much as you can and get your customers to help too! Maybe offer a competition on Facebook to encourage shares and likes.
What do I do with the fixtures and fittings?
These items cost a lot, and you may also be required to take them with you as part of the retail lease conditions. There are plenty of Sydney wholesalers who may purchase your fittings; Gumtree is also a great place to sell racks and fixtures, while local Sydney rubbish removers can come and take the rest away. They can even help with the removal and breakdown if you don’t have the manpower.
Leave on good terms
It’s an emotional time, but leaving all parties on pleasant terms is a must for your own self-worth, and you never know who you may need to call on in your next venture. Talk professionally to your real estate agent. Ensure your staff remain warm and friendly until closing day, so your reputation remains intact, and ensure that all your suppliers and utility providers are paid up accordingly. Also, make sure all rubbish and waste is removed from the site. Sydney is a booming city, but it’s still relatively small, and you never know who you may bump into down the track. You need to preserve your professional reputation.
The closing of a retail store may seem daunting, but it is just a step into the next chapter of your business, personal, or retirement life!