Thinking about launching a new business in the capital? London is one of the business hubs of Europe covering all sectors but it is also somewhere which can be expensive and highly competitive. Here is a closer look at starting a business in London and whether or not this is the best location for your startup.
Key Areas
First, you need to outline what makes a good location for a new business. The main factors are:
- Business landscape
- Access to talent
- Growth and development
- Infrastructure
- Quality of life
- Funding and support
- Future development
Strong in Several Areas
Unsurprisingly, London performs the strongest in several areas such as the number of economically active people (4.89 million), gross value added figure (£431 billion) and ultrafast broadband/4G coverage. It is somewhere that attracts many people so you can have access to talent and it is somewhere that businesses in all industries can thrive. In terms of infrastructure, London is one of the best places to start a business with superb transport links and available business premises. While it is somewhere that attracts many people, keep in mind that London rental prices are the highest in Europe although many people avoid this by living on the outskirts and commuting in.
Challenges
There are many advantages to starting a business in the capital and it is easy to see why so many entrepreneurs eye London, but it is also important to be aware of the challenges. It can be incredibly expensive to start a business here with property prices so it is likely that you will need to secure funding. This can be challenging if you have a bad credit rating but it is possible thanks to business loans for bad credit which will provide you with the capital that you need to get up and running.
Survival Rates
Competition is also fierce in London so you will need to make sure that you make people aware of your brand and offer an excellent product/service. London has a business start-up survival rate of 89.8% after one year which is not bad but most other regions have a higher rate – the East of England leads the way with 93.6% followed by the North East with a 92.4% survival rate.
Overall, London can be a good place to start a business but you must also be aware of the challenges that you will face. There may be other places around the UK that should be considered but there will always be the allure of the capital and the potential for great success if you can penetrate the market and establish your brand.