The graceful exit: How to shutter a business when the pandemic forces closure

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Inevitably, the Covid-19 pandemic will force closures of many businesses; but the way owners and founders undertake that often painful process is pivotal. According to this Forbes piece, which is chock-full of tactical directives and informative tidbits for owners who might find themselves in the difficult position of considering closure, it boils down to  clear communication and treating people with respect. First, understand the various constituencies—investors, shareholders, employees, customers, suppliers—and how to communicate that news, with a clear focus on staff:

“They may not have been able to do it in person because of COVID, but you want to have personal messages to people, and you want to be transparent as to what’s going to happen to their benefits, their salaries, their severance, and what resources you’re going to make available to help them find new jobs.”

And though “many companies may not be in a position to do that last thing, and sometimes it’s hard to find the time and energy to do those things when the world is collapsing, … the more of those things a leader can do, the better it tends to go.”

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