Close it
Closing the business is the one option I have experience with. Selling it or bequeathing it never crossed my radar. I was in my 40s, too young to think about writing a will (no children, who cares if I live or die?) and there wasn't anything of any real value to sell. By that I mean, no real estate. It never occurred to me that someone might want to buy my sewing business. So closing was the option for me.I've already told you how much I hated to sew. It should have been clear that my business was doomed from the start. I thrashed all I could out of the business, racking up $20,000 in credit card debt to keep it alive, and finally had to admit defeat. I wasn't ready to go down with the ship. Once I made the decision, everything happened fast.
I called my best customers and gave them the sad news. They were sad. I was happy. Come get your stuff. Whatever is left will be sold. I gave up my studio on La Brea and had the mother of all yard sales, liquidating sewing machines, fabric, notions, pattern paper, whatever people would buy. I was thrilled to unload it all. It took about five yard sales before it was all gone, at least all that I was willing to part with. I kept my old crappy plastic Singer (worth nothing, and who knows, I might have to mend something someday). I kept some buttons, no idea why, I just like them.
When you are done, you can just take down your sign and walk away. You'll file a final Schedule C with the IRS, and that's that.
What did I do after that? I guess that is a story for another day.
Sell it
If you have built a brand, or have a great location, or maybe your employees want to keep it going, you can opt to sell the business. I have no experience with this. You probably know more than I do. One thing I would recommend, though, is that you get an attorney, an accountant, and an appraiser to help you figure out what your business is worth and help you with the paperwork. You will want to do this legally. There are tax implications if you sell the business entity or just sell the assets. Get help!
I wish I had thought to sell the business instead of just liquidating my assets in a yard sale. Someone might have been willing to buy my client list, along with all the machines and other junk. To me it had no value, but now looking back I realize my inexperience may have caused me to lose out on my ten-plus years of sweat equity.
If, on the other hand, your hands are the business, without you there is no business, good luck trying to sell the business as a going entity to anyone else, unless you plan to work there yourself as an employee. That idea would have made me puke, but you might find it a relief to work for someone else doing what you do best. Not everyone is destined to be an entrepreneur. There's a lot to be said for a regular paycheck.
Bequeath it
If you are a sole proprietor, when you die, the business dies with you. You might want to consider incorporating your business if you want to easily transfer ownership to your heirs. I'm no expert. Get expert help with this. Consult an estate attorney and a tax attorney. If you haven't already, get a good accountant. If you have spent years building up a business and developing a solid brand, don't let it die when you do. If your heirs want the fun of operating a custom clothing business, let them have at it. Every day they sweat over the machines and soothe irate customers, they will think of you.
Now you know everything I know. Or at least, all I can think of at this moment. I'll add to this as I remember things. You know how memory is as we get older. Well, maybe I'm the only one that has that problem.
Happy sewing, if that is what makes you happy.
