London property prices are much higher than the rest of the UK and this can make doing business in London price-prohibitive for small and medium sized businesses.
The overheads do not end with just the price of property. It is also more expensive due to charges such as the Congestion Charge or parking costs. On top of that salaries tend to be higher than the average in other parts of the UK. Therefore having that London postcode or even a London 0207 numbers may be almost impossible for many businesses to survive.
However, it is important to remember that whilst the overheads of doing business in London may be higher the actual benefits can outweigh the costs. London has a population of almost 8 million and this makes it a very attractive area to do business in. With 1 in 8 people in the UK living in London then it would seem that London is the place to be.
The South-East has also long been considered the primary place within the UK for shopping and entertainment and therefore disposable income is available for the taking. It is also a major tourist destination and this means tourist dollars.
If a business wishes to take advantage of the potential marketplace that is London then it may have to pay out the initially high overheads in the hope that these overheads will soon make way for high annual profit. However, it must also be remembered that the competition within London is tough and so often weaker businesses will be weeded out quickly and they will incur financial hardship as set-up costs may never be recouped.
