When a business closes due to extenuating circumstances such as the owner’s failing health, it can still be positioned as an ongoing concern despite being temporarily closed. A closed business does not necessarily equate to a failed one, especially if it retains key elements such as hard assets, a recognizable trade name, and goodwill in the market. In fact, selling such a business can present a substantial opportunity to the right buyer. The key is to communicate its value as an operational entity that simply requires new ownership to reopen and resume operations.

A business that is closed can still be considered an ongoing concern if its core infrastructure, systems, and relationships remain intact. This includes hard assets such as equipment, furnishings, and physical infrastructure. Businesses in industries like restaurants, retail, or specialized services often have significant investments in equipment that can be reconditioned or repurposed. If well-maintained, these hard assets can offer a tangible starting point for a new owner to quickly get the business up and running.

Another valuable aspect of a closed business positioned as an ongoing concern is the real estate or lease agreements. If the business occupied a prime location with favorable lease terms, the lease itself can be a key selling point. For buyers, an existing lease at a desirable location saves time and effort compared to negotiating new agreements. A stable and advantageous lease, especially in high-traffic or strategic areas, reinforces the business’s potential for continuity.

An often-overlooked asset in a temporarily closed business is the customer database and proven business system. Even if the business is not currently operating, a detailed and well-maintained database provides an existing customer base that a new owner can immediately engage. This established audience represents relationships and loyalty that have already been developed, allowing new ownership to build on them rather than starting from scratch. Additionally, a proven business system documented in an operations manual offers a clear path for relaunching and achieving success. Having step-by-step guidelines for key processes, vendor relationships, and staffing can allow a new owner to seamlessly transition into running the business.

In the digital age, a strong online presence is another crucial component of a business positioned as an ongoing concern. Digital assets such as a professional website, social media accounts, an email list, and other digital marketing tools are integral to reestablishing the business. A business that has invested in a digital footprint, SEO, and customer reviews holds an advantage in retaining and attracting customers. Even if temporarily closed, these assets reflect ongoing engagement and brand recognition, which is invaluable to new ownership. Coupled with goodwill and a recognizable trade name, the business retains substantial brand equity and customer trust.

Financial performance and historical sales data further strengthen the case for a closed business to be viewed as an ongoing concern. Financial records showing consistent revenue trends, profitability, and growth over time can reassure potential buyers of the business’s viability. Even if the closure resulted from external circumstances, such as the owner’s health issues, historical data proves the underlying business model and market opportunity. Buyers can use this data to project future growth and identify areas of improvement, reducing the perceived risk of purchasing a temporarily closed business.

One of the critical assets of an ongoing concern is the staff or key employees who have experience and knowledge of the business. While some employees may have moved on after the closure, key personnel often have a vested interest in the business and may be willing to return. Retaining experienced staff members can ease the transition for new ownership and provide continuity in operations. Highlighting the availability and expertise of key employees reinforces the stability of the business and reduces the learning curve for the new owner.

Goodwill in the community remains a significant asset even if a business is not currently operational. A temporarily closed business that had a positive reputation and strong ties within its community can leverage this goodwill to regain its footing quickly. Customers often remember and appreciate businesses that have provided them with reliable products or services. Buyers can capitalize on this goodwill, recognizing the business as a known entity with an existing market presence.

Selling a temporarily closed business as an ongoing concern requires a proactive approach in showcasing its assets, history, and potential. Business brokers and online marketplaces can effectively reach interested buyers, but it is essential to craft a compelling sales package that emphasizes the business’s continuity. This package should include an inventory of hard assets, lease details, customer database insights, historical financial data, digital presence metrics, and other essential value propositions.

Transparency is vital in this process. Sellers must be open about the reasons for the temporary closure while clearly communicating that the circumstances were external and unrelated to the business’s fundamentals. Framing the closure as a pause due to specific extenuating circumstances allows buyers to recognize the opportunity without associating it with undue risk.

For buyers, acquiring a business positioned as an ongoing concern presents a chance to step into an established operation with existing infrastructure and market presence. This scenario offers a more stable and strategic entry point compared to starting a new business from scratch. Buyers should focus on evaluating the assets and opportunities within the business while identifying areas for growth and addressing previous challenges.

A temporarily closed business that is positioned as an ongoing concern can still offer substantial value and potential to the right buyer. By highlighting key components such as hard assets, digital presence, lease agreements, customer relationships, goodwill, and financial history, sellers can communicate the business’s viability and attract motivated buyers. Even if the doors are closed temporarily, the foundation remains intact, presenting a valuable opportunity for new ownership to relaunch and revitalize the business.

Make today a great day. Make it happen. Make it count!

About the Author

With more than 40 years of experience in small business, restaurant, and franchise management, marketing, and development, Paul Segreto is a respected expert in the entrepreneurial world, dedicated to helping others achieve success. Whether you’re an aspiring or current entrepreneur in need of guidance, support, or simply a conversation, you can connect with Paul at paul@acceler8success.com.