Startup Funding Espresso Preparing To Shut Down a Startup
Preparing To Shut Down a Startup Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. Sometimes the startup you launched does not make it and must be shut down. In shutting down a startup take the following steps: Give an early warning signal to the employees. Let them know what is happening such as we\u2019re raising additional funding. Give them a few month's notice but make clear if things don\u2019t turn around a shutdown may ensue. When it becomes clear a shutdown is going to happen, then set a closing date. Give notice to the employees about the shutdown date. The more notice you give employees the better. Inform the investors of the shutdown. Own the failure with investors and articulate the mistakes you made. If you have any customers, notify them of the shutdown.\xa0\xa0 If you have meaningful revenue then you should consider selling the company.\xa0 If you can\u2019t sell the company then you should transition the customers to other solutions. Finally, close all contractors, bank accounts, and credit cards, and shut down the legal entity. File your taxes and leave nothing left standing as it could come back to bite you. It\u2019s tough shutting down a business but there\u2019s a proper way to do it. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .