Starting and selling a business

Complex economic outlook

The Covid-19 crisis would appear to have stalled most prospects of starting a bricks and mortar business in the first half of 2020. Opportunities to develop a long-planned idea online may have more time to flourish if, for example, you are a furloughed worker, but even then potential suppliers, not to say customers, are also likely to have been affected by the sudden change in everyone’s fortunes.

Looking a bit further ahead, the UK’s long-term relationship with the EU should also be of prime concern. The transition period is currently due to end on 31 December 2020, and a subsequent no-deal exit has not been completely ruled out. Combined with a quite probable recession fuelled by the Covid-19 fallout, the UK’s economic outlook is not looking particularly good over the next 12 to 18 months.

When it comes to selling a business, the current climate again appears to constrain prospects. Under normal circumstances, 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 to the time to do that planning.