So much has been made of London's Tech City (around Shoreditch), but with rental rates escalating at a rate that even Google's boffins can't keep up with, how wise is it for tech startups to relocate to Silicon Roundabout or the areas adjacent to it?
There are a lot of perks for tech startups that successfully relocate there, but what about the tech startups that don't have the fiscal means to relocate? Stay put or relocate to a borough with suitable office space that's accessible to their clients and the businesses they work with is looking to be the best option for most.
The boroughs on the outskirts of London are among the best boroughs for startups to establish themselves in, according to experts, boroughs such as - Hillingdon, Ealing, Hounslow, Kingston, Richmond, Sutton, Merton, Wandsworth and Bromley.
Why? Not only do these boroughs have an abundance of affordable workspaces that could easily be transformed by talented interior designers in London, but they're also within a short distance of central London, accommodation is more affordable in those areas, and they boast much higher business survival rates. In fact, the difference in business survival rates between Camden and Kingston-Upon-Thames is 15 percent.
If you're looking at establishing a workplace with a contemporary office design and you're worried about the cost of setting up in the inner-city, the business survival rates of specific London boroughs is a metric you can't overlook. After all, would you feel confident relocating to an area knowing that more businesses failed there than in areas that are actually far more cost-effective to relocate to?
For startups interested in establishing a presence with a workplace defined by cutting edge interior office design and branded with their logo and colours, relocating to the inner-city is a big move, one they could come to regret. And it isn't only tech startups that are affected by this trend, as the figures for all startups that choose to establish themselves on the outskirts of London all point to the same trend - young businesses stand a much better chance of survival when they avoid the inner-city.
Relocating to the outlying boroughs of London mightn't be an option for your startup, but if it is, consider the following benefits of relocating to a more affordable location.
For many startups, it's the risk of trying to establish themselves and weather slow periods in the inner-city that's provided the impetus to relocate to these boroughs. Small startups working from shared offices sometimes do well because they have very low overheads, but startups that want a professional workspace designed by leading London office designers - and want to survive their first two years - are advised to focus their attentions on the boroughs considered the safest bets.