October 03, 2010

Starting a business

Sometime last year, my company merged with another company and as a result of the merger, there were about 40 redundant positions. All employees were offered an opportunity to opt for the voluntary separation scheme, which offered compensation of up to two months for every year of service. Since the package was better than what most of us expected, so many people applied for it, resulting in it being oversubscribed by three times. I too applied, but unfortunately my application was rejected.

Nevertheless I'm really happy for colleagues who got it as it was really a once in a lifetime windfall. Many found a new job very soon after they left the company, while several others used the cash to start up their own business. One particularly ingenious ex-colleague set up a company that offers support services relevant to our business so the company is now engaging him on several projects.

When I met up with him the other day, he shared with me on how he went about setting up his company, how we went needed to purchase a business insurance policy to protect his interests and a business car insurance for his company car. And since he recently hired several employees as his business grew, he is now evaluating various group health plans to ensure he gets the best medical and hospitalization coverage for his employees.

No comments: