Research from Lloyds Bank has shown that the average cost of a start-up business that is not home-based is £12,601.
According to the survey, 30 per cent of new business owners found that the cost of starting up a new business was more expensive than they thought, with just 6 per cent saying that the cost was lower than their budget.
The survey found that business owners aged between 18 and 34 were most likely to find the cost of starting up a business higher than expected at 42 per cent, compared to 30 per cent of those over 35.
At 25 per cent, property was the most expensive cost of starting a business, followed by transport and IT costs at 20 per cent. The cost of business premises (£2,987), vehicles (£2,440), and technology (£2,426) were found to equate to an average 60 per cent of the expenses for new businesses.
The research also showed that 41 per cent of new business owners asked friends or family for advice, compared to 19 per cent speaking to accountants and 11 per cent consulting banks.
Lloyds Bank Retail Business Banking Managing Director Jo Harris said: “When you’re starting up a new business, don’t rush into rash expenditure that you may later regret.”
“Planning and research is essential, so spend wisely and keep costs low. The more you spend upfront, the more money you’ll have to generate in the crucial first months of being in business.”
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