One in three businesses would relocate to cut costs

More than a third of small business owners are considering relocating their business premises – in order to cut costs.

That is according to a survey by Make It Cheaper and the Centre for Economic and Business Research, which polled 750 UK small businesses owners.

The research also revealed that London has the highest business costs in the country – whilst Wales has the lowest.

However, despite the expense of doing business there, the capital continues to be the most popular business hub in the country. Every year, there are twelve new start-ups for every 100 firms in London – compared with the UK average of 10 per 100.

Paul Bagust, associate director of Chartered Surveyors warned businesses considering relocating to think carefully about the decision. He said:

“Changing premises is expensive, and even if you move to a cheaper area with lower business rates, people often overlook other overheads like rent, service charges and insurance.

“Factors like footfall and competition are also important – the rent or rates might be less but if you’re a retailer for instance, does the area attract enough shoppers?”

He added: “It’s still an occupiers’ market in most areas so negotiate hard to get better terms – aim for break clauses, a shorter lease or a rent free period.

“Or could you share the space with another like-minded business to bring down costs?”

© Crimson Publishing 2011