While there may be talk of the property market in the UK cooling, it is important to note that the price of houses is still growing in London and nationwide. This applies across both the residential and commercial sectors, with the latter sector recording an impressive 14% rise during the first nine months of the year according to the IPD UK Monthly Property Index. London’s market is particularly robust, and while it may cost more for firms to establish themselves there, the rewards are also proportionally higher.
How to Save Costs when Relocating your Small Business to London
With this in mind, ambitious firms will need to manage their costs before relocating to London. Consider the following steps towards achieving this: –
- Create a Realistic and Stringent Budget
The key to any successful commercial move or investment lies in budgeting, as the accurate handling and management of your finances can help you to set stringent estimations and keep control of your costings. The more precise you are the better, as this ensures that you are dealing primarily in fact and unlikely to be caught out by unexpected expenses or payments. In terms of relocation, your budget will need to include shipment costs and also the payment requirements for your commercial lease.
- Aim for a Property at the Lower end of your Budget
Whether you are investing in residential or commercial property, the key is to aim for the lower end of your carefully prepared budget. The reason for this is simple; it effectively creates a financial contingency plan should your circumstances change or the business experience a difficult period of transition. To aid your search, simply partner with a viable online real estate service provider and identify London properties that are within your financial budget.
- Amend your Prices to Offset Costs
Once you have set up in London, the next challenge is to negate the spiralling cost of living. This can be extremely difficult, as the cost of materials and labour can also soar alongside that of commercial real estate. To avoid this, you will need to amend your pricing strategy to suit this trend and capitalise on the additional levels of disposable income available in the capital. This will help to negate the impact of any additional costs and also boost your turnover, but most importantly it will enable you to achieve the profit margins required to effectively develop your venture.