As the nation’s financial and business epicentre, London is often the first thought when deciding where to start a business in the UK. The city is home to a significant proportion of companies in the FTSE 100 and offices belonging to some of the biggest corporations in the world.
When it comes to start-ups, London is extremely competitive. Companies like Monzo and Deliveroo have rapidly developed in recent years, largely contributing to the capital becoming a financial and technological hotspot.
For new businesses looking to start-up – this offers many potential risks and rewards. But what are some of these?
The Rewards
Strong and Diverse Talent
If you want to hire the best and brightest, London is definitely the place to be. With world-class educational facilities and thousands of businesses in the region, diverse and quality candidates are never far from reach.
Whether you are looking for an experienced executive or a new group of fresh-faced graduates, London attracts some of the best domestic and international talent from around the world.
Transport links
With multiple major airports and highly efficient transport systems to the rest of the UK, London is an ideal hub for global and domestic business.
Furthermore, the world-renowned Underground system and internal transport links make commuting accessible for most. The hundreds of inbound flights and brilliant range of serviced apartments in London will make hosting clients and partners a pleasurable and rewarding experience.
The ‘London’ Factor
Being registered under a London address gives a certain appeal about a new company, as the city is already home to so many prosperous national and global businesses.
This will certainly add to the yield in funding rounds, in comparison with other regions, and with attracting the right kind of clients and employees to your new venture.
The Risks
Brexit
Unfortunately, recent changes surrounding Brexit mean more red tape with regards to imports and exports. This may complicate matters if you aim to operate on an international scale. However, if all your operations are domestic, then they will be significantly less impacted.
Higher Overheads and Costs
The capital is home to premium prices for all products and services. Competition for office space is also more fierce, which means rates are generally higher. Furthermore, if you rely on transport for products or services in and around London, then logistical costs may be significantly greater.
In certain industries, these costs may be offset by the higher prices you can charge being a London-based business, but they are certainly not to be overlooked.
Environmental and Sustainability Concerns
Finally, central London is committed to becoming a low emission zone. This is a progressive step for all, but it could mean added costs to a start-up. Additionally, health and wellbeing concerns are well established in big cities like London – so it is worth considering the impact that higher pollution levels could have on your workforce.
