Start up costs

[dfen5]

I've done a search on this forum for the title, nothing specific found so I'd be interested to hear from people what their start up costs were.

My idea is a start small retail of specialist equipment from a 500sq.ft council owned unit (suitable for purpose, approx' £5k p.a. + Business rates). The cost of stock is known and I'll be buying it but I'm just unsure about costs of getting a lease on such a unit - I've seen up to £5000 mentioned on here for a lease agreement? Insurance costs for repair/insurance, accountants, solicitors for conditions of sale, return etc etc.

Thanks in advance.

[_Voyager_]

My bus. partner and I started with a £500 laptop and an empty credit card each which used for travelling expenses! Most importantly no overheads and this is how we intended to run the business from the outset.

2 years, 17 customers, £800k and lots of hard work later we have a full credit cards and £500 laptops. We have a new director and 3 employees with expensive expenses which are our biggest overheads, plus 15 contracted Indians (and counting).

Thank god we don't deal with expensive stock holdings, rent or other fixed overheads. Any drop off in orders with that around our necks and I would be pretty worried.


My advice would be to avoid overheads like the plague. Try sub-letting of someone on a short term lease to start with if I were you. If its just storage you need, why not use a garage or 3?

We paid £2k for things like incorporation and shareholders agreements. HTH.

[ginettag27]

I was going to suggest the same thing, try to avoid a lease/rental of any kind, especially if you're testing the waters...

Try to keep all costs to a minimum, otherwise it will either a) eat away at profit or b) send you under or at least make things very tough.

[S1M VP]

If premises are absoluetly essential - make sure you get a limit set on liabilities (surcharges pre-agreed).
This is vital when/if you have to terminate the lease and make sure the landlord provides a full and extenive fixtures & fittings list.
A unit adjacent to ours caught fire and they tried to pin us for a contribution to a £25k fire alarm system, and fire proof windows/doors etc

Just be careful of the small print - it really is daylight robbery in my experience.