When business is a “White Elephant”, should we still keep going?

When there is a downturn in a company, people may choose to make a clean break by liquidating the company. However, the procedures involved and the consequences are also intricate. With the deteriorating turnover, any rookie business owner will be scared to dead! You may think that a business without returns is worthless, but people with lofty ideals, apart from money, will find that years of business has infinite value.

So, is closing the business and leaving the market really the only way out?

Business returns comes to zero, transformation is required

In 2020, the world has been affected by the COVID-19 pandemic. It can be said that many business people are complaining, but inspirational stories are not rare. Please give Hong Kong businessman a big applause, under such harsh environment, we still strive to survive. Turn shops into online stores, bars into takeaway shop, and party rooms into multi-purpose event rooms for rent. Regardless of whether large or small, enterprises have their own ingenuity, broaden source of income and reduce expenditure, use new models to revitalize existing businesses to meet new needs, and strive to survive in the storm. Others are puzzled, but those who persevere among them understand the meaning of persistence.

Sellers looking for a way out, value continuation

After half a century of operation, “Kam Kee Cafe” has witnessed Hong Kong’s financial turmoil, “SARS” and other upheaval. So far, they are still stand firm. What is the secret of the boss? To meet with great difficulties but pull though, it all depends on a humanity. Kam Kee Cafe, formerly known as a food stall, was founded by the owner Chan Gui Chou in 1967. In 2012, due to the rent pressure, it faced a crisis of closing down.

“Rent pressure” is undoubtedly the number one enemy of small and medium-sized enterprises. No matter how good the business is, it is hard to beat the big rent hike. However, closing down is not the only way out. Selling your business is a good choice. Taking the catering industry as an example, whether the seller can present the business’s key factors to the buyer. The so-called key points, in addition to the lease term, average monthly income, employee salaries, purchase cost or other fixed expenses, potential buyers will also pay attention to the history of the brand, the founder’s philosophy, word-of-mouth and customer base.

Ray, a regular customer of Kam Kee Cafe, believes that the ice room contains the collective memories of Hong Kong people, and he can’t bear the waste of Mr Chan’s hard work, so he decided to take over Kam Kee. “Starting a business is difficult, but keeping a business is even more difficult.” It is even more difficult to take over a cafe that is on the verge of bankruptcy. Ray kept the nostalgic flavor of the cafe, but at the same time repackaged the brand and set off again, and more forward.

There will always be dawn after the darkness. How can the previous efforts be reduced to zero? It is the history, memories, feelings and taste of Kam Kee Cafe that Ray takes a fancy to. After being re-operated by fresh people, the continuation is not only a business, but also represents the inheritance of a generation.

There are always more solutions than difficulties. If you give up in setbacks, it is better to seek new opportunities. Compared with closing down, how would you choose?

Welcome to contact us for enquiries MAXI TAX 2761 0139

WhatsApp & Wechat: (852) 5236 2580

Website: http://www.maxi-solution.com/

WordPress: https://maxisolution.wordpress.com

#company liquidation #entrepreneurship #closing #Business Transformation #Management Secrets #Closed Crisis #Brand History #Founder Concept #Word of Mouth #Customer Group #Collective Memories #Entrepreneurship Difficulties #Running Business More Difficult #Business Selling #tax filing #tax #accounting #Maxi #limited company #unlimited company