Explains why you should write a letter for closing a business, how to write one, and examples of letters to customers and letters to suppliers.
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If you want to close a business or dissolve a company, there are a lot of legal and contractual matters you have to take care of. Terminate rental and lease contracts, supply contracts, leasing contracts, license contracts, loan and maintenance contracts as well as all other contracts (municipal utilities, waste disposal, electricity, telecommunications, license fees, software, magazines, rental linen) in good time. After the closure, entries in telephone and yellow pages and online portals should be deleted, the homepage adjusted and the mail forwarded.
But one of the most important things to do is to notify business suppliers and customers in advance by sending a letter for closing a business. Why is this important?
- They will need to know in case they have to make other arrangements or prepare paperwork for you.
- It is good business practice and makes sure that the relationship with them ends on the best note possible — which is important if you want to set up another business in the future.
- It is a chance to thank them for doing business with you.
Letter for closing a business: examples
Each close company situation has different details. The nature of the business will dictate what actions your customer or supplier must take before the deadline. To develop a personalized letter to meet your needs, start with a sample business assignment letter and wrap text to accommodate the details of your particular situation.
Letter to customers
[Name of company that is closing]
[Address]
[Date]
[Customer Name]
[Customer address]
Dear [customer’s name – For example: Dear Tom or Dear Mr. Johnson]:
We will be closing [name of activity that is closing] on [closing date]. You need to come and [what the customer will do – for example: take the TV set not repaired] before that time or [what happens – for example: the TV set will go to charity]
I would like to thank you for your expired business and tell you how much we enjoyed being you as a customer. Don’t hesitate to call if there’s something I can do for you before [the end].
Kind regards,
[Signature of sender]
[Sender name – example: Mary Thompson]
[Title of the sender – example: Store Manager]
Letter to the supplier
[Name of company that is closing]
[Address] [date]
[Name of provider]
[Address of the supplier]
Dear [Name of Contact Supplier – Example: Dear Sir or Madam, Joan Smith]:
We will be closing [name of activity that is closing] on [closing date]. We will not be placing orders with additional [manufacturer name]. Over the next 60 days we will review our financial reports and pay any outstanding bills. If we haven’t already, we will be in contact with you to confirm our current balance sheet and ensure the resolution of any outstanding questions.
I would like to thank you for your expired business and tell you how much we enjoyed being your supplier. Don’t hesitate to call if you have any questions or if there is something we need to do to close our balance sheet with [manufacturer name] before [close].
Kind regards,
[Signature of sender]
[Sender name – example: Jane Bryant]
[Title of the sender – example: Owner]
Reasons to write a letter for closing a business
Once you make the decision to close your business, don’t just want to hang a “closed” sign on the door. You need to announce the closure to your customers, suppliers and business stakeholders. These people were the partners of your activities with the buying of products and services and, in the case of suppliers, the products and services that were instrumental in your business. As one of your final acts of customer service, you need to give them a notice that your company is no longer available to them.
Writing a letter for closing a business is a great way to:
- Thank them for their business
- Thank the providers for their service
- Explain the actions your customers and suppliers can take in closing your business
- Create a professional finish for your current business relationship
When to send the letter
There is no hard and fast rule too when you need to send a closure letter. The effective date mail depends on several factors:
- Going Out of Business Selling – You want your customers to know about your business closing by giving you something special, not by having an “out of business” sign hanging over the front door. Announcing strengthens your customers who think they are special and gives them the opportunity to finalize any business required with you. You must send a letter in your monthly invoice, or a copy, at least 30 days before the deadline.
- Accounting Status – You must notify suppliers and creditors at least 60 days before the deadline to allow enough time for the accounts to be settled and closed.
- Type of activity – A business service called a cleaning or repair shop, customers have time to come and take their things to give. A retail business will likely want enough time to leave a sale to reduce their inventory, with a business closure letter to be released when preparing for the sale.
- Your Future Plans – If you are selling a business and want to open a new related activity right away, you can minimize the time between the two companies. For example, you may decide to wait, send out the letter of closing until just before the deadline when you are selling your cleaning franchise and open your own cleaning service.
Letter for closing a business: What to include
The main goals of a business closure letter are to articulate the details of the closing of a business and to sincerely thank the reader for their business letters or closing service. Business does not take long to be effective. The letter should:
- Tell the reader the day the business will close
- Let the reader know of something they have to do (how to collect cleaning, keep paying your bill, come and go out of business selling, etc.)
- Tell the reader where to direct their questions
- I thank the customer or supplier for their company
The letter doesn’t have to give a reason why the business is closed. If the reason is good news, you can include the reason in the letter. Otherwise, it is usually best to focus on subjects that are important to letter readers as they have to be done and when.
Maintaining the relationship
It is always better to end a letter for closing a business on a positive note. Even if you think you aren’t going to see or work with an individual again, it is always best to be helpful, positive, and honest in business termination letters. Your professionalism will make it easier to close the business and can give you a head start if your future business plans lead you to work with the same people in the future.
