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London Sets the Trend for Exciting European Start-ups.

 

london strt-ups

Starting a new business is perhaps the most exciting thing any of us will ever do. To be able to go out and live your dreams and do something you’re passionate about? I can’t think of anything better than start-ups.

As an entrepreneur, your business will rely on the cash flow you receive from it to run and grow. Without cash flow, your business is in jeopardy and under extreme pressure. But this doesn’t mean there is no way to manage it — or that cash flow will lead your company to failure.

Managing cash flow can be difficult for many entrepreneurs. As a small-business owner, you may need to juggle various expenses and multiple revenue streams. In turn, you may not always know exactly how much money will be coming into or going out of your business.

UK Leads Europe in Start-ups.

Here in Europe, the United Kingdom continues to be an exciting area for start-ups. As Dr Koufopoulös, a programme director of the Global MBA at Queen Mary’s University in London points out

“The boom in start-ups is an exciting phenomenon, and it is largely due to globalisation. Now, whether you have a simple idea or a very complicated one, you can take it to a worldwide clientele – in theory, you can reach eight billion people. The stakes are high, and the potential revenue is vast.”

But having an idea is great, but it’s the execution that matters. As a savvy entrepreneur, you will understand the importance of invoicing.

start-ups in london

Invoicing is a pretty standard part of running a business. However, if you don’t invoice as soon as you deliver a service or product, there’s a good chance you won’t be getting paid.

Remember to invoice daily, or at least every week, dependent on the work your business requires. If you provide more of a service, which is often more time-consuming, it is reasonable to ask for payment upfront.

As a business owner, you’re responsible for knowing when to scale and for what specific costs… Growth is inevitable for start-ups but be patient. Do it right the first time.

Setting Priorities for start-ups

Some costs are, of course, more controllable than others. When you’re a new entrepreneur with a start-up company, the question of how much cash should go into marketing is a difficult one.

The best way to approach it is to create a separate budget for your various marketing efforts and focus on one at a time.

Choosing where to locate and run your fledgling business can present a stumbling block for many entrepreneurs in a crowded and expensive city like London.

Even post-Covid, the rents for fixed office premises can burn through capital very quickly at a moment when your new enterprise is at its most vulnerable.

For this reason, many new business owners are working from home and using a London virtual office to present a solid business feel to their new company.

Some see this as a temporary move whilst their business generates sufficient cash flow, whilst more and more see it as a workable long-term strategy. This is especially true if their business model is not dependent on potential clients expecting to see a traditional storefront such as a real estate agent or kitchen showroom.

If your business model is primarily online, you can quite easily run your business from your home and use a virtual office to handle the daily administration – telephone answering and mail forwarding.

Many virtual offices offer meeting rooms when clients turn up or have meetings with associates. Alternatively, several top central London hotels now offer short term meeting room facilities for your more important presentations.

Saving money is a driving force for most entrepreneurs and avoiding a rented office can often mean the difference between business failure and cashflow survival.