Closing the Doors

Posted At : August 27, 2008 10:26 AM | Posted By : ISBDC Manager
Related Categories: Legal,Business Practices,Human Resources,Financing,Accounting

When a business decides to close its doors, it must do more than simply lock the doors. Just as in the beginning, there are specific steps to follow to dissolve a business. If that business has been incorporated, there are a few additional steps.
 
From a simplistic accounting viewpoint, it is a matter of emptying the balance sheet. Assets are liquidated, creditors are paid, and shareholders are given their respective portions of the liquidation. By state statute in Idaho, the dissolution must be filed with the Secretary of State. The necessary form is found on the Secretary’s website. And of course, the IRS must be settled with as well.
 
The IRS provides a checklist for businesses seeking to dissolve. Among others, this list includes:
  • Make final federal tax deposits
  • File final employee pension/benefit plan, final quarter or annual employment tax return and final tip income and allocated tips information return (if applicable)
  • Issue final wage and tax withholding to employees and payment information to any subcontractors
  • Report from W-2’s and 1099’s issued
  • Report capital gains and losses, partners’ or shareholders’ shares, corporate dissolution or liquidation, and sale of business assets or other exchange of property.
To read the full checklist, including links to the appropriate forms, visit the Closing a Business page within the Business section of the IRS website.  To read more about dissolving a business, check out these guides from AllBusiness.com and Quamut.com.

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All For One

Posted At : August 21, 2008 3:57 PM | Posted By : ISBDC Manager
Related Categories: Marketing

Horizontal marketing is a form of promotion that thrives on creativity and fosters a collaborative relationship with neighboring businesses and even competitors.  Horizontal marketing occurs when two or more businesses that overlap clientele join together in their marketing efforts.  For example, a printer company and computer company bundling their products for a special discount.  The two companies are both trying to reach the same audience.
 
MSNBC recently featured an article written for Entrepreneur.com by Sarah Pierce that along with some real examples listed three benefits of horizontal marketing. 
  • Cross endorsement – Both companies benefit from the single campaign.  This is particularly beneficial to a small company that is able to partner with a larger, more visible one. Denise Patrick, Pierpont Communications, gives the example of a local miniature golf course offering free passes through the large movie theatre.  The movie theatre gets a free gift to pass on and the golf course gains access to their large teenage customer base that is looking for entertainment. This is a situation where the two companies could view each other has competitors, but using this approach both are able to benefit.
  • Spread out the cost - Horizontal marketing allows the participating businesses to share in the fixed cost. 
  • Offer a full brand experience without increasing your overhead – By banding together, businesses can reach individuals that may not have been specifically looking for their business, but found it through the connection with another business.  Ms. Pierce shares an example from Michael Hart, a business marketing consultant. He helped a heating and cooling company unite eight other home services related companies to produce a coupon catalog that featured each of them individually. According to Hart, the catalog increased each vendor’s sales by 20 percent, expanded client base by eight fold, while decreasing advertising and mailing costs.
     
    Horizontal marketing requires thinking outside the box and viewing your business neighbors in a different light.  It can be as simple as a coupon catalog or as visible as giving away a car with a home purchase.  Either way it can effectively pump new life into your marketing strategy.

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