Property named biggest cost for SME start-ups

Property is the single largest cost for new SMEs, according to figures released by Lloyds Bank.

Lloyds reported that the average cost of starting a new business is £12,601.

Property was the biggest contributor to these costs, accounting for 25% of the total.

Transport and IT came second at 20% for both.

Business space, technology and vehicles combined accounted for 60% of costs.

Lloyds also found that female business owners spend 59% less than male owners at the launch of a business.

Nearly a third (32%) of new businesses found that start-up costs were higher than expected.

Jo Harris, managing director at Lloyds Bank Retail Business Banking, 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.

“Think about what is really important.

“Many of the most successful businesses started at the kitchen table or in the shed at the bottom of the garden, so consider whether you really need new premises at the start.

“Advice from friends and family is important, but your bank can support you with specialist guidance and tools to help you write a detailed business plan and prepare a budget to get you off on the right footing.”

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