Recession Is The Best Time For Company Formation
In a recent survey, many law firms in the US and UK have reported that the first
two quarters of 2009 have seen more company formations than the same period in 2008. Recession seems to be a catalyst for small company formation. Interestingly, company formation by big corporates seems to be dropping during the same period.The lesson? Small companies are learning to swim where their big brothers - the top-heavy, organizational behemoths - have sunk to the bottom!
Much of this is because of the recession itself. Many people who have been working in the top rungs have been sacked or have had to take a serious pay cut. In both instances, it makes more sense to cut through the clutter and reach out to customers directly. The solution? Forming your own small company to deals with customers directly.
As a result bankers are offering banking and investment tips through small consultancy boutiques. IT geeks are setting up shop in small offices to sell their wares directly to clients across geographical borders and so on.
SMEs in the US and UK have leveraged on the recession to find creative solutions to the cash crunch problem. Surprisingly, more than 70% of such companies felt that since they were born in the hotbed of the recession, their companies will emerge from the recession stronger than ever before.
Entrepreneurs are discovering that as their business grows, there comes a time when they need to give it a name and a legal status. Company formation is the natural course in the path and it is the logical next step if they want to keep their business alive and strong.
Fortunately, company formation is no longer the complicated process it once was. In fact, this is one more reason to be thankful for the recession. New laws implemented in October 2009 have made company formation and registration much easier and attractive. As more small companies started finding their way to the fore, the company formation process has become simpler and shorter. The strategy is clear: give small businesses all the support they need so they can pull the country out of recession.
However, in spite of the benefits that are offered, company formation is not a decision to be taken lightly. It is a process that requires precise thinking and decisive action. Once you decide to form a company, experts can take you through the process of company formation in a seamless and easy manner. Getting expert help will help you avoid the potholes that lie in the way. Besides, you get more time to focus on the business itself.
Indeed, a recession is the best time for company formation. A company formed during such times has everything to make it big. History has witnessed this. Recessions are always followed by periods of boom, although no one can predict when the boom will come. However, if your company survives and grows at the time of a recession, you can very well expect to reap rich rewards when the boom is here.
Visit http://www.a1companies.com/company-formation.html
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