When A Company Closes Down: What Next?

Unfortunately, these days we are constantly reading about failed businesses.

When a company closes down in the direct sales industry it can have devastating consequences for fearful consultants both within the company and those with other companies.

Our sympathy goes out to Pink Papaya distributors everywhere!

The news of a direct sales company going out of business puts fear into the hearts of all direct sellers, hosts and supporters of the industry.

No one in direct sales wants another black mark that the naysayers can point to saying… told you so!

Home Party Plan – Direct Sales Viable

When A Company Closes DownIf you are one of the unlucky few who must endure your company closure – we feel your pain!

While it may be a traumatic time for those directly involved, remember that all is not lost!

If you decide, you can choose to start a new business and that does not mean you are starting at zero again.

Your skills and experiences to date give you leverage to grow quickly and chances are many of your team members and customers will join you when you select a new company.

The industry is strong!

The 2013 estimated retail sales of USD $32.67 billion for the direct selling channel were up 3.3% in the United States, from USD $31.63 billion in 2012. (DSA)

When A Company Closes Down

When your company closes you must act quickly and also take your time!

Don’t let fear become panic! The result will be that you are likely to make poor decisions about your career and money.

Direct sellers who take control of the fear and use it to motivate themselves to a positive change when determining their choices will move themselves forward.

If you let your fear turn you to depression and take no immediate action, you may miss out on rallying your team,  customer service opportunities or closing sales.

Whatever decisions you make for yourself, you want to provide the service and support that your hostesses, customers and consultants need during this tough time.

  • So, act fast!
  • And, act with deliberation!

Be fast in reaching out to your team, engaging your client base with sales or end-of-business income opportunities and embracing your client base.

Be deliberate and take your time when making a choice regarding joining a new company.

You may want to read the page on this site regarding how to pick a home party plan company.

The decision to join a new party plan should not be made quickly.  Deliberately research and make your decisions whether you will be joining another company or not and which one is best for you.

My Company Is Closing Down

You can survive your company closure!

  • Tidy up your finances
  • Tie up loose ends at the company
  • Protect your customers & team
  • Support your team
  • Decide whether to find a new company
  • Grieve – then, start again

Company Closing = The Recruiting Frenzy

A company closing often results in a recruiting frenzy!

Distributors of every other company begin to recruit and (probably) overwhelm those still in shock as a result of their company closing!

It becomes an unflattering frenzy that makes the industry as a whole look bad.

Yes, you would like to have them join your team but do it in such a way as to set yourself apart from the rest!

  • Offer sympathy – really…when a company closes down the reps are in shock!
  • Send a real note – offer support and condolences.
  • Support the consultant in any sales or closeout opportunities.
  • Stay connected without soliciting!

Both online and offline, friends and not-so-close acquaintances… the answer is to just be there for them.

When you treat the business closing with respect and support those in grief, they will remember you.

Set yourself apart from the frenzy. Stop recruiting and start being a friend!

Chances are you will end up signing a few of the consultants as well!

Comments

    Shared by: Sabine:

    Yup, been there. It is true. just be a friend.

    Shared by: Sue Kaup:

    Sadly, in today’s economy, this could happen to anyone. That’s why it is so important to brand yourself and offer amazing customer service.

    Shared by: Bev:

    Good advice. I have never dealt with this personally and hope I don’t. But it is good to know what to do in case it does.

    Shared by: Jessica Kaiser:

    This is a great read and a good reminder to share with my team. Sadly too many people had to deal with this in 2016.

    Shared by: carrie douthit:

    I have not had a company close, but I have left a company. I also see the sharks circle when the “bleeding” begins, and it shocks me. I love the support and connect suggestions.

    Shared by: Ann Wills:

    Luckily I have not experienced this personally but I have seen it happening in some FB groups when other companies have closed & the sharks start circling. Not a good look.

    Shared by: Phyllis ONeill:

    This would definitely be devastating!! I pray I’m never in this position, but no one does, right? I’ve seen this happen several times and it’s so sad (not to mention, disrespectful!!) when consultants from other businesses start pouncing!! ? We must let these consultants grieve and come to terms with what happened! If they are your friend, they already know what business you are in, so please don’t be in their face about it. This breaks my heart when I see this happen. For those who do go through this loss (business closing), do your research thoroughly before jumping into something you’re not 100% sure of. There are lots of great companies out there and there is definitely one that is perfect for YOU!

    Shared by: Linda Rennie:

    I loved this one, especially the the 1st 4 of My Company is Closing Down. We should be doing this all the time, several times a year reviewing this. Not everyone has experienced “the missing upline” or “the only time I hear from them is when they want something from me”. This is a reminder of how we should be conducting our biz all the time.
    We all need to be there and be present- hopefully our company isn’t closing. But if it is, your posting is a very good reminder of how we should be responding.
    Thank you for this one.

    Shared by: Rita Bosh:

    another goodie

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