Premises are a substantial cost when setting up. As a new business, unable to provide references from your (business) bank manager and a commercial (not residential) landlord, you will be required to pay:
◆ three months’ rent in advance;
◆ six months’ rent as a deposit.
A 250 sq ft shop in a reasonable, secondary location could cost £10,000 plusVAT per annum in rent. This could mean paying nearly £9,000 to the landlord alone before redecorating, fitting out the shop or buying stock to sell, let alone getting to the stage of opening the doors to customers and earning any money.
