Before you consider the most appropriate vehicle for your business, a limited company or self-employed, there is another issue you might want to consider.
We have witnessed many individuals who were displaced, made redundant, by downturns in the economy. Understandably, the insecurity this experience breeds leads to a yen to try something different and start their own business.
Using a redundancy pay-out, they follow their dream.
One of the first questions we ask a budding entrepreneur is to ask this question – what experience do you have?
A dream is likely to be a romantic association based on anything but what a new business owner is qualified to undertake. For example, the engineer that has always had a yen to open a restaurant, or the office worker that wants to lay bricks.
Unless you are willing to undergo a period of retraining, to gather the skills your business will demand, think twice before investing your redundancy pot, savings or the second mortgage you may have taken out, to fund your new venture.
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