Where Is The Best Place To Start A Business?
Start it here ... or there?
The Guardian newspaper printed a really interesting article yesterday claiming that some towns are better for long term success of your business than others. Statistics from The Centre for Entrepreneurs reveals that UK is a thriving entrepreneurial economy ...
If you're wondering where the best place to start a business is then research can help you!
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The article suggested that more start-ups (49.4%) succeed and are still going five years later if they are based in Cambridge. Similarly, that Cambridge has more well-educated people and, therefore, less of a skills-gap than other towns.
On the other hand, the city with the most start-ups is London with 88,580 business start-ups in 2014 and over 200,000 in 2015 (no surprise because it's bigger!). What is interesting about this is both Watford and Warrington had more start-ups per capita than either London or Manchester!
"Well, actually, the statics shows some predictable trends!"
There are more start-ups in bigger towns than in smaller towns. There are less start-ups in rural areas than in towns. London as a financial centre has more people raising more money than other places.
One interesting trend is the increase of seaside towns appearing among the top 20 of places based on start-ups per capita; might this show the growing use of technology means location becomes less important?
Let’s cut through the numbers for a moment ... does any of this impact you and your plans to start a business? Well, yes it might and there again, no it won’t! If you need a highly trained workforce, then starting up in a place with those skills will make it easier to recruit, for example.
Crowdfunding makes finance simpler wherever you are so you don’t need to start a business in London, but starting up in a city with plenty of people means you have a bigger catchment area for your potential customers. Can your use of technology make your location unimportant?
Some of these are pretty obvious points, but only if you thought about it as part of your start-up planning! The real point here is to bring location into your planning.
Where will your customers come from?
Where will your workforce be located?
Do you need to be near a motorway or other transport links?
The other key point is, where are you located now and how easy is it to start here? Or do you need to move to somewhere more convenient? Is it even possible to relocate? Starting a business is a wonderfully exciting time, but do your planning and don’t get carried away by the enthusiasm of the moment.
"Don't let any of this put you off!"
Getting good advice in the planning stage is essential if you want your business to be a success and JVCA can help you. Call me on 0333 335 0422 and let's arrange a coffee at my offices to see if together, we can get you moving in the right direction.
Until next time ...
I've been an accountant in and for business since 1987 and have a wide experience of consultancy, audit, accounts, taxation and wealth planning work from individuals and small businesses to multinational corporations and charities.
My eclectic interests in growing and developing business span a number of areas … and can be summarised as strategic business advice and tax saving advice.
I have worked with the Chamber of Commerce to deliver courses for people about starting up in business and have lectured about tax for a major accountancy practice and for Milton Keynes College.
I relax by reading fiction and by getting away from the office in a campervan.