Starting and selling a business

Complex economic outlook

The Covid-19 crisis has stalled most prospects of starting a bricks and mortar business through most of 2020, with recurrent outbreaks and further rounds of local, tiered restrictions announced in October impacting a widespread return to normal economic activity over the next few months.

Looking a bit further ahead, the UK’s long-term relationship with the EU should also be of prime concern. The transition period will end on 31 December 2020, and leaving without a UK–EU trade deal in place is looking increasingly likely. Combined with the current recession fuelled by the Covid-19 fallout, and most likely worse to come when the employee furlough scheme is replaced from November by the less generous job support scheme, the UK’s economic outlook is looking challenging over the next 12 to 18 months.

When it comes to selling a business, it doesn’t matter whether you are developing a business idea to quickly cash in before starting all over again (the typical serial entrepreneur), planning a smart career move (with the successful sale of a self-started business looking very good on your resumé) or are in for the long haul – planning your exit strategy at an early stage will ensure you don’t pay more tax than necessary. This might be just the time to do that planning.