Briggs AnalyticsHow to wind down a small business without leaving money behind
In this article
Tell people in the right orderCollect what you are owedSell what the business ownsCheck the records before you cancelPay what you oweFinal paperworkTell people in the right order
Staff first, with their final pay date. Then customers with open work, then suppliers. A clear date and a plan keep relationships intact, which matters if you sell anything to them later.
Collect what you are owed
Send final invoices for open work and chase what is overdue. Customers pay closing businesses slowly, so start early.
Sell what the business owns
Equipment, vehicles, inventory, the phone number, the website and domain, the customer list if your contracts and privacy rules allow it, and possibly the business itself to a competitor or an employee.
Check the records before you cancel
Your field service app, your bookkeeping file, your CRM and your email hold years of jobs quoted, done and paid. AI companies now pay for records like these, licensed as a copy, with personal details removed. Google bid $10 million for Spirit Airlines' records (Business Insider); a small business is worth far less, but it can be found money at the end.
Software companies delete closed accounts on their own schedules. Export everything, or at least keep one admin login alive, until you know what you have. What to export first, by industry.
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Lenders, taxes, final wages and suppliers. If the business cannot pay everything, talk to a lawyer before you pay anyone, because the order can matter.
Final paperwork
Dissolve the company with your state, cancel licenses and permits, and file final tax returns. The SBA has a short guide to closing or selling a business, and the IRS lists the federal steps for closing a business. Cancel the software last.
In short
- Tell staff, customers and suppliers in that order.
- Collect what you are owed and sell what the business owns.
- Export your records before you cancel software. They can be worth money to AI companies.
- Pay what you owe, dissolve, and file final taxes. Cancel software last.
Questions owners ask.
What should I do with business records when closing?
Keep what the law requires, and export the rest before cancelling software. Years of operating records can be worth licensing.
Can I sell my customer list when I close?
Sometimes, depending on your contracts and privacy laws. Ask your lawyer. The records of how the work got done are usually the more valuable asset.
How long should I keep records after closing?
Your accountant and lawyer will tell you; tax and employment records have their own rules.
Is my small business too small for anyone to want its data?
Not necessarily. Years of history in your systems matter more than headcount. The estimate takes about two minutes.
