In the fast paced world of retail, making tough decisions is a part of the job.
If you have a formally drawn up partnership agreement there may an exit strategy, but surprisingly many businesses don not have this.
But one of the most challenging decisions you’ll ever make as a business owner is whether to close your retail store.
If you factor in having a business partner, the decision becomes even harder.
When it comes to this important decision in your business journey, communication is key.
The art of talking to your business partner about the possibility of closing your retail store can be tough, but we’re here to help.
At Silverman Consulting And Retail Services, we understand the intricacies of closing your retail store, and how complex it can be.
Let’s explore how to navigate this crucial decision, ensuring that the both of you are on the same page and can make informed decisions about the future of your retail venture.
Have An Idea Of What You Want To Talk About
When it comes to discussing closing your retail store with your business partner, having a clear plan in mind is essential.
This conversation is not one to be taken lightly, as it involves decisions that can impact your partner.
So, it’s important to take a proactive approach.
Before approaching your business partner to have the conversation, it may be helpful to jot down notes of discussion points you would like to address.
Begin by outlining your reasons for considering store closure.
This can be due to things like:
- Diminished cash flow
- Having trouble retaining customers
- Rampant shoplifting due to being in a high crime area
- Feeling burnt out as a store owner
- Feeling like you’re ready to retire
- Feeling like your store is no longer relevant
- And many others
Ask yourself if there’s anything your partner could do to convince you to stay on in the business.
If the answer is no, stick with that.
You’ll have to discuss the specific details with your business partner, including how best to liquidate your assets, choose a store closing sale event consultant, how to break the news to your employees, and more.
Be Open And Honest With Your Partner
Confronting the challenging conversation of closing your retail store with your business partner means you’ll need to commit to open and honest communication.
Candidly sharing your reasons for wanting to get out of your retail business sets the stage for a meaningful and productive dialogue.
This helps your partner understand your reasons for getting out of retail, of course, but it can also help them appreciate the necessity of doing so.
By painting a vivid picture of the challenges your retail store is facing, you create an atmosphere that’s favourable to rational decision making.
It’s also essential to delve into the financial aspects of closing your store.
Be prepared to discuss the various costs associated with this step, from lease terminations to inventory liquidation and employee severance packages.
Addressing these financial concerns upfront helps make sure both you and your partner are fully aware of the economic ramifications.
You can then collectively assess the potential impact on your business in its final days.
Embracing transparency in this process demonstrates your commitment to your partnership, even as you ask to dissolve it, and your willingness to adapt to changing circumstances.
Listen Actively
While you’re engaging in an open and candid conversation with your business partner about the potential closure of your retail store, remember that your partner will have a lot to say as well.
Open and honest communication is the foundation of a successful partnership.
After you’ve begun the conversation by sharing your reasons for considering store closure, don’t stop there.
Actively seek your partner’s input and insights.
Encourage them to share their thoughts, concerns, fears, and ideas regarding the situation.
Ask questions to delve deeper into their perspective so you can better understand their position.
This demonstrates that you value their input and are genuinely committed to finding the best solution together.
Remember, listening actively involves more than just hearing words.
It requires empathy, understanding, and compassion.
Be Compassionate
As you broach this sensitive topic, this discussion not demands not only active communication and listening, but also a generous dose of compassion.
This conversation isn’t just about your business.
It’s about your partner’s life too, and they may not have seen it coming.
Remember that your partner’s reaction may be an emotional one, as this news might be unexpected.
Compassion in this context means acknowledging and respecting your partner’s feelings, even if they react strongly.
Stay composed and avoid reacting emotionally as your partner processes the information.
Remember – you’ve had months to think about this, while your partner is just hearing it now.
Listen attentively and validate their emotions.
By demonstrating empathy and compassion, you create a safe space for your partner to express themselves.
This will not only strengthen your partnership, but also help navigate this process and next steps more effectively.
Openly Discuss Your Options
While discussing the possibility of closing your retail store, exploring the various options at your disposal becomes crucial.
Your business partner’s input plays a pivotal role in shaping the path forward.
After all, your partner might want to buy you out and keep running your retail store on their own.
If so, are you open to that idea?
If you are, what might you need to give you security as you walk away from your business and into the next phase of your life?
Will your partner be able to afford to buy you out?
Do you trust that their plan will allow them to hold up their end of the deal, or are you worried they may continue to rely on you for your skills and input in the operations?
These are important questions to ask yourself.
On the other hand, maybe they’ve been thinking of getting out of retail as well.
In that case, should you close or sell your business?
The timeline is another critical factor.
Are you willing to continue to run your business for another year or two?
Or do you want out sooner than that?
By thoroughly discussing these options and considering the implications of each choice, you and your partner can collaboratively navigate this situation.
This will help make sure your choices align with your shared goals and individual aspirations.
Contact Silverman Consulting And Retail Services Today
Making the decision to close your store can be incredibly difficult.
When you find yourself facing the conversation about closing your retail store with your business partner, it’s helpful to seek guidance from those who understand the intricacies of the retail industry.
This is where we come in.
At Silverman Consulting and Retail Services, we’re here to help navigate the closure process smoothly.
We’ll work with you to evaluate your options and put together an exit plan together with you and your business partner.
That includes running a store closing sale to help you liquidate your assets, make as much as you can from your store in its final days, and help you move into the next stage of your life comfortably and confidently.
Contact Silverman Consulting And Retail Services today.
Silverman Consulting & Retail Services229 Yonge St suite 400,
Toronto, ON M5B 1N9, Canada
1 (888) 955-1069