Technically, closing or selling the business can be done whenever you make the decision to do it; however, there may be sound financial and professional reasons to choose your timing more carefully. For example, if you're a retail business and your best sales of the year are made during the run-up to the holiday season, you could consider closing the business in January. That would allow you to take advantage of increased sales in November and December to boost revenue and decrease inventory. The balance of your inventory can be sold in a January closing-out sale, when people tend to be on the hunt for bargains.

If you're a service-oriented business owner, consider the natural peaks and valleys of your year. For many service providers, the summer months are slower paced than the seasons between September and May. Perhaps it makes sense to scale down and then close the business during the summer. You'll be inconveniencing fewer clients at that time, while giving them a chance to find someone to replace you before their own busy seasons start to pick up.

Understand, too, that closing or selling the business is not a single action where you lock the door and walk away. It's a process much like starting a business so it needs to be planned just as carefully. Give yourself the time you need to handle all of the tasks and paperwork involved and seek legal and tax advice from your advisors. Tax advice is particularly important when it comes to the timing of your closure: Depending on how much money you'll gain or lose on the sale or closure, you might want to choose the time of your fiscal year in which you leave the business.

Of course, if you're in dire financial straits and are facing bankruptcy, your best choice might be to close the business as quickly as possible to limit further debt. This might also give you more control over the sale of your assets, maximizing the amount that will be available to repay your debts. Again, legal and tax advice is essential.