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Between Covid-19 closing down cities, property damage and the shift in the market, many small businesses have taken a hit. Many companies are seeking bailout money that may never come. Some businesses have had to close their doors due to debt, bankruptcy, or their uncertain future. But, before you close your doors for good there’s still ways to recoup some of your financial investment. And in a time when cash is king, your company’s old tech can be a treasure trove to help you bounce back.
Sadly, in our current climate, technology can be like a new car. It starts depreciating in value once you drive it off the lot. Or in this case, take your drive out of the box. When you factor in the pressure of newer, better, faster it can be easy to forget the intrinsic value of our technology. We can get so bogged down in our personal bottom line we forget the market at large. There is a market for someone who may need a server upgrade, copier, or some of your other office equipment and they are also a bit cash-strapped. Just because your equipment may not be worth the sticker price anymore does not mean you should ignore the potential financial benefits. Re-selling your office equipment and supplies can help you pay off outstanding debts, eliminate financial pressure, and clear some space.
It can be sad to think of your company as a liquidation sale. So… don’t think of it that way. Put on your accounting hat and figure out how best to get back in black. Managing a business can be like riding a wave. You cannot control the market, your customers, or the industry you are in. All you can control is your reaction. Sometimes, you grow quickly and sometimes you have to reign in some of that expansion. So look at your business objectively. By shifting a few things around and offloading excess you can give your business a shot in the arm or at least preserve your financial future.
Step 1: Take Stock
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Closing a business can be overwhelming and traumatic. But those feelings aren’t something you can do anything about. Channel them in doing the best you can for your future and your former employees. Take stock of all of the items of value, unsold inventory, and the other assets of your business. This can help you create a strategy for eliminating items and in getting the best price. The more clarity and care you give to this process the more effectively you can get the best price. You can also locate any licensing, warranty, and vital information about your equipment for the next owner.
Sell, Sell, Sell
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The idea of selling the pieces of your business can seem daunting or even depressing. But capitalize on the one resource you now have…time. Now that your workload may have dropped you can focus that energy to research, listing, and actively selling your old assets. Remember that your time is valuable, every time you try to dodge doing the work. Getting the most from your old computers, appliances, and even office supplies can be the most important business decision you make. It sets the tone for the next phase in your life and can help you eliminate debt. Investigate your options. Companies like Talented Technologies can purchase your servers, drives, and other technological equipment. You can also investigate selling them on your own. Remember, you’re still in charge.
Take it to the Taxes
Big ticket items like servers, copy machines, and other expensive tech equipment can be filed as an expense or claimed as an asset in your business taxes. If you claimed them as an asset, you can write off their depreciation each year. So, if you were to sell your existing technology equipment you may be able to break even because you included the depreciation in your taxes. By ascertaining the fair market value of items, not only can you properly write off the depreciation, you can also be sure you recoup the remaining amount by selling them at a fair price. You can also investigate the tax benefits if you end up donating any equipment. Closing your business will have tax ramifications so make sure you deal with them strategically rather than just learning on April 15th.
Closing your business can be a tough pill to swallow. But only you can decide if it’s medicinal or poisonous. With proper planning and strategy you could potentially downsize your operation or save your business. Or you can recoup a lot of costs, investments and potentially break even. The challenge is to do the research, work, and never forget the value of a dollar, your skills, and your time.