Start-up costs hit 4 year low

[peterjhale]

The average cost of starting up a business has fallen by more than a half over the past four years to just £4,000, according to new research.

A study by PC World Business found that falling prices for IT equipment, furniture and office has seen the average cost of setting up a firm plummet from £10,000 in 2000 to £4,000 in 2004.



PC World Business said that the figure, which is based on a four-person venture, suggested that there has never been a better time to start up a business.

The survey will no doubt encourage even greater numbers of budding entrepreneurs to go it alone, to add to the soaring numbers of business startups in 2004.

Buoyed by the resurgent economy, and new bankruptcy laws, startup numbers have increased dramatically over the past six months, with over half of graduates admitting they want to become their own bosses after they leave university.

According to PC World Business, the cost of fitting out a new firm with computers, office software, fax, photocopier, printer, network server, telephones, desks, chairs and stationary can be as little as £3,400.

Although this figure doesn’t include rent, supplies, marketing costs and other overheads, the initial low cost of starting up is bound to attract even more people to start up in business.

John Stevens, PC World Business’ head of marketing, said that the figures will make good reading for entrepreneurs.

“Technology is one of the most important decisions a startup business has to make. “As businesses increasingly rely on technology to improve efficiency and customer service this is good news for entrepreneurs trying to start a business,” he said.