A new study has calculated the typical costs for setting up a business in the UK.
Research conducted by Quotemyenergy has found that solopreneurs are likely to need £30,000 for their first year in business. This includes paying for the cost of a co-working space (around £3,500 for a year) as well as core costs such as company set-up, insurance and building a website.
The average cost of setting up a retail business is considerably higher. The findings show that retailers need £172,000 for the first year. Renting retail premises and storage space can cost more than £37,000; while buying a store space will cost a six-figure sum. Stock, tills and staff are also expenses that would-be retailers would need to factor in, including the cost of employees' NI payments and insurance.
The research finds that tech entrepreneurs need the biggest start-up fund. On average, £380,000 is needed for the first year to pay for office space, specialist staff and the equipment required to run a successful technology business.
The research finds that office premises are likely to be the biggest first year expense for any start-up and employees are likely to be the second biggest drain on the purse strings - especially with National Insurance, employee insurance and recruitment fees on top of salaries.
Earlier this year, a survey by accounting software provider FreeAgent found that 11% of Brits intend to start a business in 2018. The findings also found, however, that the two biggest issues holding back would-be entrepreneurs were start-up costs and worries about managing company finances.