Could a Change in Circumstances Be the First Step to Company Formation

As the economic climate shows no immediate sign of improving, more and more people are under the threat of redundancy, In this post, we consider enterprise after redundancy and changes in personal circumstances both of which, many successful entrepreneurs cite it as the impetus they needed to take the plunge.

Advantages

• If you are starting a business in a recession, there will be low start up costs.

• Redundancy payouts can provide an opportunity to invest in a start-up business.

• If your personal circumstances change, starting your own business – though time consuming – can allow you to the flexibility to work around your family.

Disadvantages

• A huge change in personal circumstance can be stressful. Company formation requires clarity of thought and considered action.

• Forming a company is a huge financial commitment and it is unlikely to turn a profit. Therefore, relying on your newly formed company, as a revenue stream is not viable initially.