Relocating Your Business to London – the Pros and Cons
As the economic heart of the UK and a magnet for aspiring companies and entrepreneurs, it’s no surprise many successful businesses either start or later relocate to London. The capital has a global reputation that now attracts companies from all corners of the earth, so avoiding moving to such an international business hub can seem like a missed opportunity.
Not every business will benefit equally from being based in London, though. A lot will depend on the industry, ambitions, size of the company, financial situation and other factors. It’s best to weigh up the pros and cons for your business before making the move.
Having a distinguished address in one of London’s premier business locations creates a far more sophisticated appearance for your company than being based on a business park outside of Norwich, for example. This is more likely to impress potential clients, investors and employees while being surrounded by other likeminded businesses will further boost your profile.
Greater exposure and a professional outlook is required for all businesses to expand. The internet may have made online exposure simple, but physical presentation is still important. This does not have to be ruinously expensive; renting a serviced office, for example, can be a great way to secure an address in a prestigious location, without the prohibitive costs associated with buying property.
Being close to other businesses is important for innovation in certain sectors, as demonstrated by the strength of Silicon Roundabout and Canary Wharf in London. Areas such as these are what draw many businesses to the capital, attempting to replicate or join in on the success of similar companies.
This factor also attracts a lot of talent to the city, and with a population over eight million it shouldn’t be hard to find new employees. Many will move around between jobs, so if your new and exciting business turns up in the area it’s sure to tempt some great talent.
The main reason most businesses move to London is to grow and, ultimately, to make more money for everyone involved. What puts many off is the far higher prices attached to buying and renting office space in the capital as opposed to anywhere else in the UK.
Due to poor financial planning some companies have taken the step but then gone bust as results haven’t gone to plan, leaving them unable to afford rent. Ensure you have enough capital and a back-up plan if things go awry. With all luck your company should soon be turning a profit large enough to buy property in Chelsea or Canary Wharf!
MONEY & COSTS