If a small landscaping company went out of business would liquidation be a good option?
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This is for a homework assignment in which I am making a business plan. The theoretical company has only been open for a few months and only has about $1,500 in capital. I"ve heard that selling capitol is not usually very profitable, but I'mk thinking that sense the company is going bankrupt, there probably won't be anyone wanting to invest in it. Therefore, I will liquidate the company. If it is open for several years, grows into a larger company and then for some reason I want/need to quit, I will sell it to my employees or another individual. Does this sound like a good idea? Thank you!
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Answer:
Does the company have any loyal customers? Business assets are more than just capital.
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