Opening your business in its London quarters is certainly something to pop a champagne cork over. Whether you find yourself in a busy business district or out in the lesser-populated tube map zones, London is an exciting cultural hub to immerse yourself in. Many business owners worry about the financial risk they take when opening a business there, and rightly so. It can be incredibly risky opening up your company to a pricey and competitive market.
Do your research first
Look at what businesses that came before you learned from moving to London? Did they have any bad experiences? One of the best ways to protect your finances is to look at the data. You will need to make worst-case scenario estimated for when you move there and anticipate any losses you will make.
Market research is also incredibly important as it allows you to find out who your competition is. Make sure that you have something different to offer compared to everyone else in your sector – particularly in London. There are plenty of helpful resources online that provide more than just personal accounts of starting up a company in a big city. City of London, for example, provides lists of resources for those who are wanting to do industry research. Fact sheets are incredibly useful for anyone who wants a summary of all there is to know about their chosen sector.
Be careful with real estate
Negative equity is damaging at the best of times, but in London, it could be deadly for your company. Investing in property specialists who have expert knowledge of the London area is the wisest step to take. Finding out the latest London property news will help you to keep on top of prices and risk.
Get insurance
What if the absolute worst were to happen? What if the apartment above you causes water damage to your business downstairs? While it’s easy to suppose that it would never happen to you, taking your situation for granted could be lethal. Accidents are fairly democratic in the sense that they could happen to literally anyone, including you and your business. Taking out business insurance to cover legal issues and your building’s contents could be a life-saver for such a small, new company.
Make a business plan
When starting up any type of business, no matter where you base yourself, it is important to have a business plan. This should include your financial strategy for opening, growing, and the general future of your company. Business plans should continue to grow and adapt as you progress throughout the years. The plan you start out with should look nothing like the structure that you plan out for yourself in five years.
It’s perfectly understandable to be anxious about setting up a business in London. With so many political uncertainties at the moment, you may be wondering what risks you could expose yourself to. However, in order to avoid taking on too much risk, it is important to research your sector and the area you plan to set yourself up in.