2018 is the year of the entrepreneur, with the highest number of would-be business owners ever set to take the plunge and take a chance on their dream. But whether it’s opening a grocer’s, or launching the next big tech start-up, the cost of setting up alone is still a concern for many. Contributor Anne Author – Quote My Energy.
New research, carried out exclusively by business energy price comparison site Quote My Energy, has revealed the average outlay for starting up your own business over the first year, wherever you are in the UK. With first year costs starting from as little as £30,000, the costs of setting up each type of business have been compiled, so everyone knows how much they need to save before becoming CEO.
From Business to Business
No two companies are the same, but different types of business influence what likely first year outlays could be. Going it alone from a desk in a co-working space. From the most budget friendly to the businesses you’ll need to scrimp to set up, the most popular dream gigs and their costs were found to be:
– Solopreneurs – £30K outlay for the first year: ‘Solopreneurs’, or those going it properly alone, have it the cheapest in XX, with an estimated first year outlay of £30K. With office rental coming at around £3.5K for a seat in a co-working space, or less for savvy entrepreneurs, the biggest expenses a solopreneur will need to budget for in their first year will likely be company set-up, insurance and building a website to advertise their services – a must in today’s market!
– HR Start-Ups – £380K outlay for the first year: There’s a lot of money to be made in the start up space today – but anyone looking to make some, may need to spend it first. Office rentals for even a small teamcould account for up to 50 percent of that estimated budget, while employee salaries, insurance and equipment are another huge budgetary consideration. However, tech-savvy entrepreneurs may be able to save money by building their own websites!
Business Budgeting
Unless you’re a solopreneur going it alone from the comfort of your own home, office premises are likely to be your biggest first year expense, with prices starting at £30K for one co-working space. Employees are likely to be the second biggest drain on your purse strings, with basic salaries also added to with NI considerations, employee insurance, potential recruiter fees, and equipment for your new team. Just registering your business alone is also likely to pump up the cost, with an estimated cost of £340.37 just to get your business up and running.
Build Your Own Business Plan
Quotemyenergy noticed that there was a real demand for a business calculator, but ones that existed online simply allowed prospective business owners to add in the costs for every aspect of starting their business manually. This was not helpful for those who do not know how much it costs to register a business or set up an office.
This new tool collates data from government, business and retail sources to provide an estimate of how much investment may be needed over the first year of setting up your dream business – whether it’s a small coffee shop or a tech giant.
Londoners commute on average of 74 minutes every day
Commuting in the UK has always been an issue, with an average commute nearly an hour long at 54 minutes. But, according to Instant Offices, it’s Londoners who bear the brunt of this with the longest commute in the country at 74 minutes – almost twice the worldwide average of 40 minutes.
According to a recent poll, two-thirds of Londoners found using public transport as the most stressful part of living in the capital. Commuting is considered an unpleasant activity, and when you factor in the time it takes to travel to work in London, it is not surprising that many professionals and businesses are looking for alternative ways of working.
Based on official figures from the Department for Transport, crowded trains are carrying almost double the number of passengers they were designed to take.
Demand for rail services into London has increased by 12 percent over the last six years, and it is forecast that by the early 2030’s, Waterloo trains in peak hours could be comparable to 5.4 passengers cramming into an average-sized phone booth.
A Rail Delivery Group report found that the number of rail journeys was up from 800m in the late 1990’s to 1.6bn in 2015, meaning that the number of train journeys made each year has more than doubled since that time period.
Commuters are Deserting Trains
Commuters are becoming frustrated with the long commutes, high fares and often unreliable services of rail travel. Many people are slowly deserting trains and opting to work from home, while Londoners are changing the way they work to avoid the use of the railway.
In 2017 alone, rail fares rose by an average of 3.4 percent, the largest increase since 2013. Cheap train tickets now seem to be a thing of the past as train fares have risen twice as fast as salaries over the past decade.
How Businesses Can Help Employees Combat Long Commutes
Many rail executives argue that Brexit is to blame for falling traffic, although a more likely reason, given by industry experts, is the high fares and unreliable services. But thanks to more flexible hours and locations being implemented by companies, as well as the increase in part-time jobs and sophisticated technology, going to the office every day is becoming less of a burden.
Businesses can help their employees enjoy shorter, cheaper and less-stressful commutes in a number of ways:
Season Ticket Loans and Discounts
Commuter concerns are not isolated to the time it takes to get to and from work. Due to the increased cost of travel, primarily by rail, many commuters face fares of more than £3, 000 – £5, 000 a year, depending on the route.
Businesses can assist employees by offering season ticket loans, which will help those staff members who are unable to pay upfront for a monthly or annual pass. Not only will employees enjoy cheaper rates, but they will be able to pay them back over an extended period.
Implement ‘Cycle to Work’ Schemes
The ‘Cycle to Work’ scheme is a government tax exemption program that allows employers to loan bikes and safety equipment to their staff as a tax-free benefit. Employees are also able to ‘buy’ the bike at the end of the repayment.
The scheme allows employees to spend up to £1, 000 on bikes and equipment, which will be tax-free and result in a saving of 42 percent on the overall value. In addition to the financial benefits, the scheme aims to encourage people to make healthier and more environmentally friendly lifestyle choices.
Offer Flexible and/or Remote Working
Flexible working has been known to have a positive impact on both an employees’ physical and mental health as well as their productivity. In fact, according to a recent survey, 30 percent of people would choose flexible working over a pay rise if they were given a choice.
Remote working could be considered if employees are struggling to make it to the office due to time or money constraints. If full-time remote working is out of the question, consider occasional remote working where employees can work from home or flexible office space near them once or twice a week. In this way, the pressure is alleviated as employees do not have a long commute every day, and companies can save costs on office space and electricity bills.
