1) Liquidate and close the business.
It’s hard to shut down the business you worked so hard to build, but it may be the best option to repay investors and still make money.
There are two main ways to liquidate your business:
- Paying yourself until your business funds run dry, and then closing shop. The benefit to this method is that you will still get a paycheck to maintain your lifestyle. However, you will probably upset your investors (and employees). This method also stunts your business’s growth, making it less valuable on the market should you change your mind and decide to sell.
- Close up shop and sell assets as quickly as possible. Simple, and happens very quickly, the money you make only comes from the assets you are able to sell. These may include real estate, inventory and equipment. Additionally, if you have any creditors, the money you generate must pay them before you can pay yourself.