There's a lot to cross off your list when you're closing a business. From processing your emotions to updating your clientele, it's easy to miss things along the way. Let us help take some of the stress away with our business closing letter templates and tips. It might feel like you're in this alone, but remember that you don't have to be. There's help waiting around the corner if you take the chance to look.
Business Closing Letter Templates
As you get everything in order, the two main groups whom you need to notify about your impending closure are your customers and suppliers. These separate letters may take on a slightly different tone depending on your rapport with each. Here are two sample letters for these specific audiences. To make things even easier, each template is a customizable PDF document that you can save and print as needed.
Related: Basic Business Letter Format + Writing Tips and Examples
Customer Notification Letter
This template will help you deliver the news to your beloved customers. Prepare for a range of emotions as you may learn how important your business was to others in the community. You may also get some heartening well wishes for your future endeavors. If your business deals in items that still need to be delivered to your clients, this is a helpful letter to send. They need to know everything about the timeline of when they can expect to receive their products, if you'll be issuing refunds, and so on.
Supplier Notification Letter
The suppliers and vendors you work with to keep your business running should be notified, too. This template is set up to let suppliers know that your organization will be ceasing operations. You'll want to provide sufficient notice so everyone can get the books settled, their final account invoices sent over, and all payments sent or received. The last thing you want is to be scrambling to get things settled at the end.
These form letters cover the basics — but they're not entirely comprehensive. Consider your business and the pieces of information that might be pertinent to add. Remember that every business closure is different!
Why You'd Write a Business Closure Letter
Before you hang a 'closed' sign on your door, you'll send a business closure letter to those most closely involved. A formal letter is the standard here. After all, these are the folks who have been key players in your business activities. They are the ones who purchased your products and services and, in the case of suppliers, provided you with products and services that were instrumental in your business operations. So as one of your final acts of customer service for this specific venture, you'll need to give them advance notice that your business will close.
Business closure letters aren't just goodbye notes, but they're also legal protection. Sending one of these with ample notice protects you from potential lawsuits by suppliers or disgruntled customers.
How to Perfectly Time Your Closure Notice
When's the perfect time to send the letter? Well, that depends. If your closure came out of nowhere and took you by surprise, you'll want a moment to digest the news. And you want to offer your customers and vendors the same courtesy. The sooner the better is often the best answer, but again...it depends on the situation.
Notify Customers as Soon as Possible
If you want to avoid speculation, notifying customers as soon as possible is ideal. Plus, these folks are the lifeline of your business — you wouldn't want them to show up to a shuttered shop. Having notice reinforces your gratitude for your customers' past support and gives them the chance to conduct any necessary final business transactions with you.
In general, consider mailing a closing notification letter at least 30 days before the closure date. For example, a service business like as a dry cleaner or repair shop will need to give customers enough time to come in and pick up their belongings. A retail business will probably want to leave lots of time for a sale to reduce its inventory, with the business closure letter being released before the sale begins.
Give Suppliers Ample Notice
When it comes to suppliers, you may want to give even more lead time. It's generally best to inform suppliers of your intent to close at least 60 days before your final date of operation. This will allow enough time for accounts to be settled and closed. Word might start getting out though, so you may want to consider alerting both suppliers and customers at the same time.
If you're selling a business and plan to open a related new business immediately after, you may want to minimize the amount of time between sending out the two.
What to Communicate in Your Letter
The main point of a business closure letter is to clearly express the details of your business closure and to sincerely thank the client for their business or service. These letters don't need to be long to be effective.
Consider including these elements in your business closure letter.
- Tell the customer or supplier the date the business will close
- Inform the customer or supplier of anything they need to do (such as pick up their dry cleaning, pay off their outstanding bill, or come in for the going-out-of-business sale)
- Tell the customer or supplier where to direct their questions
- Thank the customer or supplier for their business
The letter doesn't have to give a reason why you're closing down. If the reason is good news, such as retirement, you may decide to include it in the letter. Otherwise, it's usually best to concentrate the letter on subjects that are important to the client, like what they need to do and by when.
Share the Letter on Social Media
Snail mail is a classic way to share the news of the closure, and we still think this is the way to go for your clients and suppliers. But it's also a great idea to notify folks through social media, especially if your business communicated with folks this way. You can include all these tips in a newsletter emailed to customers as well.
These are some things to consider when sharing closure notices on social media.
- Share a copy of the note to customers but add some information about suppliers as well since many may also be reading
- For the supplier part, focus only on how you've appreciated them over the years — keep the business portion to the snail mail letter
- Add a meaningful photo to connect with your audience
- Tailor the notice to be a bit more informal, possibly including fun memories and events from over the years
- Announce a closing party/sales event if it's something you're planning
Finish Things off on a High Note
Endings aren't easy, even if they're happy. The most important thing when you're closing a business is to end your business relationships on a positive note. Show your gratitude for those who helped keep your business running, and you'll feel the love sent right back to you. And sending out a solid business closure letter is just a great way to show up for your clients one last time.
