Quit job, started own business: Can RAV help?

Visas, Permits, Passports and Naturalization
1
Hi everyone,

My friend quit his corporate job (notice period till end of September) and is starting his own small business. But it takes at least 1-2 years to build a business and until then he won't have enough income to make a living. Would RAV pay unemployment during the time he struggles?

Thanks in advance for your answers.

2
They will pay three months then he is on his own.

Unemployment is for people who need it. Not people who want it. They pay him to find a new job.

His business, his risk.

3
This document (German) explains how RAV can assist unemployed individuals to become self-employed:

https://www.ag.ch/media/kanton_aarga...e_20110726.pdf

Note that one of the requirements is that the unemployed person became unemployed through no fault of his own, i.e., did not voluntarily quit his employment.

Although this may not apply to your friend's situation, RAV will also consider some self-employment activities while unemployed to be interim work which will not cause the disqualification of unemployment compensation.

Also, in limited cases, unemployed individuals who start a business that does not get off the ground can enter the RAV unemployment system after a short period of time.

4
They will pay for 3 months during the planning stage, the day the business is open for business, assistance stops.

Thats part time self employment, it can be a percentage or the odd day here & there. I was part time self employed if I worked for foreign clients when receiving unemployment insurance.

5
Your friend better starts talking with his employer if for example 60% would be possible for a year, or even work 100% for a whole year and build up a financial buffer. No money, no customers and then to quit a job and thinking it needs 1 or 2 years before the business runs well is imho incredible stupid.

6
So your friend quit their job to start a business they can't finance... planning does not exactly seem to be their strong point.... they are already at the point where it is going to be luck rather than skill that will determine the outcome.

I would suggest they consider plan B - withdraw the notice if possible, create a realistic business plan, plus the ability to finance it and then make the jump.

All of this of course assumes your friend has the legal right and permit to do so.

7
If somebody came to me, after handing in their notice and asked to rescind it for whatever reason, i would say no !

For the simple reason, the guy wants to leave, something didn't work out for him, so he wants to come back, but for me, the writing is well and truly on the wall, he's just waiting for another opportunity to walk away.

If the business is going to take 1-2 years (wild estimate with 100% difference) is it really a going concern ready to go ?

8
As the great Philosopher Yoda said, "Do or do not, there is no try."

9
I did say: "if possible"

10
I'm curious about the flip side.

What if you

* lose your job through no fault of your own

* are receiving unemployment benefits

* are available for and searching for work per the requirements

* but also incorporate a GmBH or AG without acquiring customers or generating revenues.

i.e. you are looking for a job but incorporate a company on the side, with the expectation that it might grow over time but will not immediately generate any income in the near term. Will the RAV limit or stop your benefits even if you are still searching for a job and fulfilling those requirements?

By this, I am not speaking about the 90 day planning phase where the RAV doesn't obligate you into looking for a job.

11
I don't believe you can stay on with RAV.

A friend who was sacked about 20 years ago got his girlfriend & someone else to set up a GmBH, he did some part time work for this company for about 4 months, then bought half the shares & signed off from RAV.

12
Maybe a bit overlooked but you do not need to start any company for purpose of business activities in CH.

There is also something called "Bürgschaftsgarantie" so google for it.

Alos until you have BA - you may want to ask RAV for courses in areas of Marketing,finances,accounting etc which both would n raise changes of success

13
One other thing

Should you start company - you are eligible to do early withdraw from Pillar 2A (up to 12-months after company was started) .

So that with some already put aside capital , good business plan and above "state insured credit line" is pretty good for starting being your own boss.

Good luck & have fun !

14
Reading this thread, seems that business plan hasn't been worked on, if your friend is asking the state (RAV) for help (which they won't, at least for a long while as your friend left his/her job, meaning he won't see any RAV money for a while) before even starting, I wouldn't touch my 2nd pillar.

Please don't be one of those people who uses up all his/her funds without a solid business plan or a way to finance your business.

15
I thought it was for self employment?

16
would work for Einzelfirma or Kollektivgesellschaft

would not be an option for GMbH or AG

you can convert one to another . Depends what is the desired outcome you looking for I guess.

Best is go to Treuhander and get advise right there which route to take

17
Your friend was really not mature enough to start the business, that's stupidity or a strong self-confidence. I'd say now he has two options: 1 take the plunge and work out his business with no income during the first months, 2 look for another job plus seriously investing his personal time in getting into the business, who knows which one of the two paths will lead to success.

Oh, I'm as usual very tough/sarcastic. Sure, I can also understand that someone feel so bad at work that he's/she's quick to forge some plan on a thin air and hold on to it. I bet it's also quite justifiable for the unemployment, the system doesn't force people to hold on their jobs if they can't bear it.