Starting your own firm costs £17k, study finds

Want to be your own boss? A new study has found that British SMEs need an average pot of £17,095 for working capital...

by Michael Northcott

One of the biggest hurdles to getting your own firm off the ground has traditionally been cash. But according to a new study, from O2 Business, you’ll need an average of just over £17,000 in your first year to get started. 

The study, which surveyed 518 small businesses, found that almost half (48%) of businesses now rent or lease goods and equipment instead of buying them to reduce upfront costs, and around 46% see paying monthly for essentials as the future.

The most popular things to rent or lease were phone lines, office space, photocopiers and franking machines, water-coolers, cars and vans, smartphones, coffee makers and IT equipment. So basically everything.

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