London is not only the capital city of the UK, but it is also a central hub for housing market and business growth. In theory, this makes it the ideal destination for any aspiring entrepreneur who is hoping to establish a brand new venture, especially those who have a certain amount of start-up capital to cope with the cities vast living expenses. It is important to make an informed decision before selecting London as the final destination for your business start-up; however, as among the benefits there are also potential pitfalls that can restrict your initial growth.
Selecting London as a Destination for Your Business: 3 Things to Consider
With this in mind, what are the three main considerations to bear in mind when deciding whether or not to establish a London-based start-up?
The Cost of Living
While it is common knowledge that residing in London is far from cheap, the cost of living has additional connotations for aspiring entrepreneurs. In addition to finding an affordable place to live and managing everyday expenses such as utilities, food and drink, for example, it is also necessary to invest your business capital wisely and identify cheap commercial premises. Although there are professional service providers such as LEO that can help you to achieve the latter, however, you will need to estimate costs in line with your budget prior to making the move.
The Market for Your Product or Service
Given the lure of London as a business hub, it stands to reason that it should appeal to aspiring and existing entrepreneurs from across the country. This can create huge amounts of competition within local markets, however, which may make it difficult for you to differentiate your brand from existing rivals. There may also be geographical factors that impact on the demand for your proposed product or service, and it may well be that there are alternative regional markets that are less saturated and offer far greater chances of success.
The Impact of Britain Quitting the EU
Although it is by no means assured, there is a strong possibility that Britain will quit the EU in the coming years. While this may bring certain benefits, it will have a largely detrimental impact on UK trade and could even trigger the loss of more than a million jobs in London alone. This would also equate to billions of pounds, so although withdrawal from the EU would affect Great Britain as a whole it would have a particularly detrimental impact on London and its individual businesses.
What to Look for When Appraising Commercial Office Space in London
No matter way you interpret the UK’s impressive growth statistics from the last eighteen months, it cannot be denied that London remains pivotal to the nations’ economic well-being. It is growth in the capital that has underpinned nationwide expansion, with the International Monetary Fund (IMF) having recently upgraded its forecast for UK growth 3.2% for the remainder of this year and 2.7% in 2015. This at least partially explains why every business owner wants to operate in London, although the costs associated with this require careful consideration before you make a financial commitment.
So if you do decide to venture out into the capital in the pursuit of commercial success and office space, you will need to keep the following points in mind: –
Location, Location, Location
London is a huge place, with significant trade links to France, Europe and locations further north in the UK. It is also separated into multiple boroughs, each of which has its own unique benefits to business owners and a clearly defined cost of living. These factors are sure to influence your choice, as they will impact on the amount that you are required to spend in monthly rent and insurance costs. So before you select from a range of commercial premises, you will need to compare individual areas to ensure that you are making the most viable overall choice.
The Importance of Achieving Value for Money
Value for money is also a key consideration for business owners, especially those who are dealing with a stringent or minimal budget. This is why you will need to be cautious when moving into a commercial location, as otherwise you will end up paying over the odds for an inferior lease arrangement or structure. Simply searching for serviced property can lead you astray, for example, as there are service providers who will offer more of a corporate concierge to customers and deliver far greater satisfaction levels as a result.
How You Can Apply Your Negotiation Skills
Once you have identified a viable regional location and a number of potential commercial premises, the next step is to taper your selection and agree a final deal. This is where small details can make a surprisingly big difference, however, as having the ability to negotiate with service providers and drive down the cost of your lease can reap huge financial dividends. By negotiating in a proactive and tenacious manner, you can cut the cost of commercial leasing without alienating potential service providers.