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're raising additional funding. Give them a few month's notice but make clear if things don't 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. If you have meaningful revenue then you should consider selling the company. If you can't 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's tough shutting down a business but there's a proper way to do it. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let's go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.