Life after redundancy
Cathy has written blogs in the past on how a redundancy package/payment in lieu of notice is taxed by HMRC.
Whilst most people seek other employment, a sizeable number choose to set up their own business. There are some compelling reasons to start a venture while the economy stagnates:
- Better deals are available on rent, lower rates and other premises costs
- Other expenditure will be comparatively lower – such as advertising, set up costs and even staff
- Reduced competition as more established (and overhead heavy) businesses fail
- Potential customers are more motivated to look for better deals in a down turn, opening more doors than normal
SME businesses are a vital part of the UK economy, providing employment, creating growth and introducing new skills.
Individuals may prefer to buy an existing business – whether it is from a retiring founder, or if it is in a distressed state. With reduced profits and earnings multiples, we are theoretically in a buyers market.
For those individuals intending to run a business for the first time – good luck and make sure you take the necessary professional advice .
Julian Dobbin is a partner at Mercer & Hole. The views given in this blog are personal to the author.
Date: 29th April, 2010
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