According to a survey of 1,500 small business owners in the UK, 13 per cent set up with between £1,001 and £3,000.
The reward for these wallet-friendly start-ups was also found to come quick, with 79 per cent confirming they made a profit in year one and over a quarter making a profit in one to two months. The average small business owner takes nine months to set up their company and make a profit.
The survey also found that when asked how successful business owners think their company is, 74 per cent said ‘very’ or ‘quite’ successful.
There was however a significant difference in start-up costs when it came to gender, with 68 per cent of women starting up with £1,000 or less, compared to just 48 per cent of men.
So far in 2016, nearly 600,000 new start-ups have been created and this trend is set to continue. According to a follow-on survey, where 1,500 consumers were also polled, 40 per cent of people say they have considered starting up their own business. The most popular choice for potential businesses were in the food and drink, retail and trade sectors. More unusual thoughts included running a fishing pond, a children’s climbing centre and a falconry centre.
However, when asked why they had never taken the leap, the top three answers were a lack of money, the risk of failure and that they just don’t know how to.
Mark Clisby, Marketing Director at Yell Business said: “Setting up a business can understandably be daunting, especially when taking the financials into account. However, our research sheds a promising new light on starting up and making success of a dream.’
“While there will likely be the long hours in the set-up period and risks that need to be considered, after making that initial leap, we have been told time and time again by our customers that they wouldn’t switch from following their dreams, while enjoying more freedom, flexibility, and above all, choosing what you do every day.”
