These are austere times. And austere times make people tread with caution; new business ideas are talked over carefully, slowly analysed and debated before anything is done. The market is analysed, the risks carefully weighed up and the decision to commit pondered long and hard before anyone goes ahead.
The market conditions are difficult to anticipate or predict, making your forecasts a little like guesswork. There’s definitely a market out there, you’re just… not so sure you can quantify it accurately.
The banks are lending. Oh hang on a minute, no, they’re not. But yes they are, there’s that new Government scheme. Ah wait a minute, you don’t qualify. Or it’s been pulled. Whatever, the bottom line is that funding is also uncertain.
While your new business idea is almost certainly a good one that has every chance of success, the fact of the matter is that market uncertainty combined with funding uncertainty makes committing to any large costs upfront a real challenge.
For many trading companies, there are two main upfront costs; your initial stock and somewhere to trade from. While your stock should quickly turn back to cash that you can invest in more stock to sell, your business premises are a net cost that can absorb significant working capital. Typically, professional landlords will be looking for a 5 year lease with a 6 month rent bond (deposit) and quite possibly more if you are a new start-up. That’s quite a lot of dough to fork out.
So you go for smaller premises. Shorter lease. Lower risk. But you’re still committed for 2 years, there’s still a deposit to pay, and what happens if you don’t grow as fast as you thought you would? Or if you completely outgrow your business premises before your lease is up? Then, you are stuck in the same space, crammed in and needing more storage space for your business.
This is where self storage comes in handy, especially in London. On the face of it, London self storage looks pricey; you will pay £18 per square foot in London (per annum) and up, depending on how large or small the space is. However, you won’t have to commit to a long lease. You don’t have to pay business rates (which add almost 50% of the rent again to premises). There are no utility bills to worry about, and insurance for your goods is taken care of by the storage business. Suddenly, £18 per square foot of storage space starts to look like good value, and that’s before you consider the facilities on offer.
Some storage businesses offer free wi-fi, power and light inside personal storage units, use of a forklift and 24hr access, 365 days a year. Some offer meeting rooms for hire as well, so you don’t need to worry about meeting clients or suppliers in your storage or stock room. And best of all, the storage contract runs from month to month, so you can add (or remove) space at will depending on how busy you are. Complete flexibility and total control over your costs from month to month, now that makes real sense for any start-up or small business.
This helpful sponsored post was provided by Attic Storage.