A new interactive tool based allows prospective entrepreneurs or shop-owners to find out how much they need to get started.
New research from business energy comparison company quotemyenergy.co.uk into the average cost of starting a business in the uk has been turned into a user-friendly startup calculator.
The results include:
• the average cost of setting up a retail business is around £172k
• Tech Startups can expect to spend around £380k over the first year
• ‘Solopreneurs’ can expect to splash around £30,000 over their first year on setting up digital companies.
First of its kind
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.
So called ‘solopreneurs’, those that start businesses with no other members of staff, can expect to splash around £30,000 over their first year on setting up digital companies. This includes all the legal costs of registering a business, 1 desk in a co-working space for a year and web development and marketing costs. These are based on the average amounts spent by SMEs so savvy solopreneurs could invest a lot less to get started.
High Street Spenders
The new calculator is not just for tech startups and offers average pricing for setting up a retail or hospitality business, including premises and stock outlay. For example, setting up a retail business with mid-quality stock, could set you back £172,000 over the first year. This includes renting retail premises, staff salaries and pensions, and setting up an online service – which is necessary for modern high street business to survive.
Next Tech Unicorn?
They say you have to spend money to make money, and that’s certainly true if you’re looking to set up the next tech unicorn. Most tech companies start with a small staff of up to 10 people – accounting for office equipment and online setup this style of business would need an initial investment of around £380,000 over the first year.
See how much it would cost to set up your dream business using the calculator here.