ABC Money

How to Incorporate Appreciation for Maximum Wealth-Building

Elliot

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10 November 2017

How to Incorporate Appreciation for Maximum Wealth-Building

For people looking to build wealth, there are many ways to go about this. Investments seem to be the best way by letting your money do the job for you. Investing can be made in different ways. For people who are familiar with investments they know you can choose to invest for cash flow or appreciation. There has been a debate on which one is better, but the answer can depend on who you are and where you are as well as what are your goals in investments.

Investing for Cash Flow

In this form of investment, you invest in property that brings money fast usually after a month or a few months. It is a good option to choose when you are looking to get money fast as you spend it. These are usually buy-and-hold properties that require much of your attention and involvement.

This form of investment releases income every month but to do so, you have to play your part. First, you have to understand all the expenses needed to maintain such property to produce a certain income. You need to be good in numbers otherwise the costs might exceed the income, and you end up making losses. This type of investment is similar to investing into a business. You have to run your business well or otherwise it might collapse, and you lose everything.

Incorporating Appreciation in Investments

For a long time, people used to think cash flow investment was the only way to go. However, if you are looking to build wealth, appreciation is your friend. This process requires patience and proper calculations. It is fully based on time and other determining factors. As an investor, this is where sensitivity analysis comes in handy. For example, if an investor of gold had done the sensitivity analysis then they are ready for the new policies by president Trump.

The purpose of sensitivity analysis is to understand your investment by measuring how different determining factors will affect your investment after some time. This is important to do before you buy or invest in any property. When dealing with a property such as real estate you should consider the growth rate of the real estate location. You should also measure how the cost of living is changing and how that affects property in the surrounding area.

Before you invest for appreciation consider all the factors. We have seen things go wrong for investors who expected the property to appreciate but bad things happened. If you are a low-income earner, then you should first consider investing in cash flow investments. This is a good way to ensure you pocket some money after every month making your life easier. However, if you are a person of patience, then appreciation should be your priority.

Factors to consider for maximum benefits

After you have decided to invest in property for appreciation, it is imperative that you carry out some research. Visit the property you intend to buy and inspect it yourself. Ask yourself questions like:

Would anyone wish to live here?
What is the potential for growth in this area?
Who is more likely to live here?
Are there enough facilities to sustain a good life?

Check for small things like schools, hospitals around the area, proximity to the nearest town or city, the terrain, weather, and climate. These are the factors that will determine whether your property will appreciate or not. Consider what the neighborhood looks like and how the neighbors feel about that place. Only after you have done all this can you be able to do the sensitivity analysis.

After the analysis then you can be able to predict the rate at which your property will appreciate with time depending on the factors. You can then come up with a plan on whether to cash out your investment at a particular time or hold the investment and continue earning from it. We all know that most people who became wealthy started by investing in real estate and property that appreciates over time.

Some advantages of incorporating appreciation in investment

Appreciation comes with many benefits. The most common ones are the following.

First, the process is passive, and you do not have to do anything to gain income. It is all about time and patience.
Property such as land and real estate always appreciates and never depreciates. As such, it is a guarantee that you will get something in the end.
As the real estate appreciates, you will still earn money in cash flow as you charge rent, which also increases as time passes by.

Good investments require proper planning. Anything can make you wealthy if you have a good plan and play it wise. About 95 percent of the time property always appreciates so as you make your investment decisions you should incorporate appreciation. Consider all the factors then make wise decisions.

For more information on finance and better taking advantage of investing solutions, visit Finance for Dummies.

Why is Corporate Relocation So Popular? It’s All About Profitability

Business

ABC Staff

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9 November 2017

0

Why is Corporate Relocation So Popular? It’s All About Profitability

In recent years, there has been a major rise in demand for corporate relocation services. Companies formed in affluent but expensive nations, such as the USA and Britain, are moving their business HQs abroad in their droves.

They are driven by one thing (the thing most-all private sector businesses a driven by): profitability. Being based within famously expensive Western capitals of commerce presents a multitude of benefits, but these benefits are often outweighed by the sheer cost of doing business.

Many companies originally from these countries are drawn elsewhere, with popular placements being Hong-Kong, Canada and the UAE. So what profitability benefits are pulling away so many major companies and small businesses alike? Is this something you should consider for your business?

Reduced Cost of Taxation

Business tax rates in the UK are not considered to be the highest in the world, although through a combination of corporation, income and dividend taxes, they are nowhere near one of the cheapest globally either.

This leads many businesses to establish corporate relocation projects, moving to countries considered to be tax havens, where they are legally capable of cutting down on state payments while operating at the same level. This is especially tempting for businesses that operate online, where relocation will not result in a reduction in output, or when moving to a country like Canada where the markets are just as strong, if not stronger.

Cheaper Operation Costs

The UK isn’t just expensive in terms of taxation; it’s also sky high for operation costs such as rent, utilities, resources and basic costs of living. London is ranked as the third most expensive city to do business in the world, and many other hubs of British commerce suffer from similar problems.

Other cities and hubs of commerce around the world, however, offer very different costs. Belfast, for example, is considered one of the world’s cheapest cities to operate within. Other contenders include Mumbai, Kiev and Johannesburg, and these are just the tip of the iceberg.

With costs undercutting the UK by considerable margins, it’s small wonder that businesses see the benefit in investing in corporate relocation and establishing themselves elsewhere in the world.

Less money spent on basic operating costs means more profits to be made.

Lower Salary Demands

The average person in the UK commands a salary of £27,000, with those considered to be skilled workers racking up considerably more than that. The average wage in the UK is high, but so is the cost of living. However, in other countries, where cost of living is much lower, salaries are too. With a drop in cost, though, you might be forgiven for thinking you’re giving up a level of skill and ability as well, but that all depends on where you base yourself.

For example, in the Polish city of Krakow, tech companies will find software engineers more than capable of matching the skills of their British colleagues, complete with degrees from prestigious Polish universities. However, their average salary is £17,000, compared to £34,000 for a British-based software developer.

Keep costs down, keep quality up and be as profitable as possible by taking advantage of corporate relocation and moving your company overseas to somewhere with qualified but cheaper labour.

Increased Market Penetration

Corporate relocation isn’t all about pushing expenditure down; it can also be about driving profits up. Depending on your industry, you may be facing fierce competition in your current location, with upwards of thousands of businesses all vying for the same customers. Remaining where you are can be very limiting, but the world is a big place with ample opportunities for expansion.

Relocation may be carried out to access large, better or less-saturated markets. Moving to a country where your business is in demand will allow you to increase profits at a lower ratio of investment and marketing costs.

Better Investment Opportunities

Continuing on our theme of increasing profitability through growth, not reduction in costs, businesses are also tempted away from their homelands by the promise of better investment opportunities overseas.

Many cities around the world create a culture of industry, becoming capitals of certain sectors. For example, Silicon Valley is known for its affinity for tech, while Zurich is famed for its relationship with finance. Notoriety attracts investors looking for a certain type of business and, as a result, if you slot nicely into their intended sector, you’re far more likely to come away with the cash you need.

It’s a smart business move and one that makes a lot of sense. Looking for growth? Go where the best opportunities are.

Flight Delay Compensation: Using a Solicitor vs. DIY

Elliot

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8 November 2017

0

Flight Delay Compensation: Using a Solicitor vs. DIY

If you have ever been delayed at an airport or have been faced with the stress of a cancelled flight, you’ve probably considered applying for flight delay compensation. Flight delay compensation can be claimed if your flight was delayed or cancelled and the fault lies with the airline. However, knowing the best way to make a claim can cause confusion.

Why Should You Use a Solicitor?

Many individuals assume that the quickest and easiest way to make a claim is by doing it themselves, but this isn’t always true. There are a lot of benefits to choosing to use a solicitor over doing it yourself, such as:

With their legal experience and insight, you can be confident that the claim is being handled correctly. This means no documents are missed and all information is sent to the right people.
There’s a higher chance of compensation success when using a solicitor as they know the ins and outs of the legal system, which means they know the best way to approach everything.
When you try to make a claim yourself, without professional representation, you run the risk of making a mistake. Errors can lead to cases not being won or a lesser amount of compensation being awarded.

However, doing it yourself comes with the benefit of not having to pay a solicitor for a claim that has no guarantee of being won, right? Wrong. With No Win No Fee being an option, there’s no worry of financial risk.

The Benefit of No Win No Fee Compensation Claims

No Win No Fee compensation claims for flight delays are extremely popular, mainly because there’s no risk of having to pay a solicitor and getting nothing in return. When a claim is handled on a No Win No Fee basis, you do not pay anything to the solicitor upfront. Instead, the solicitor takes a percentage of the compensation won as their fee. So, if the case isn’t successful, you’re not left out of pocket.

Seeking the help of a solicitor and taking the No Win No Fee compensation claim route is a lot less of a hassle, as all you need to do is provide them with the information needed. Then, they take care of everything else.

Machine translation: Why businesses can’t afford to rely on automated tools

Elliot

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8 November 2017

0

Machine translation: Why businesses can’t afford to rely on automated tools

Both business needs and the public’s desire to speak with others all over the world, regardless of language barriers, have resulted in a booming machine translation market. But businesses can’t afford to rely on automated translation tools alone.

Our newly globalised society has had a massive impact on the demand for real-time interpreting services, and the new technology is not without risks.

Machines have no contextual knowledge

Automated translation systems have no background knowledge of anything at all other than the language(s) which they are programmed to translate. Even one of Google Translate’s own researchers has said that their most recent, high tech AI update “doesn’t have a model of how the world actually works yet.”

While at first, this may not sound like a bad thing, the truth is that a good translator or interpreter will have experience translating in their chosen field (ie. medicine, corporate law, games & apps, etc.). Furthermore, screening for “grammatical or spelling errors by a second mother-tongue translator” is a core component of quality translation highlighted by Global Voices.

Having relevant contextual knowledge will also ensure that your translation adheres to the necessary social conventions and, as is often necessary, legal requirements, of each culture/country involved in the translation, depending on what the situation(s) dictate. So until a translation app can help you decode medical terminology in Brazilian Portuguese, or on the best way to sign off an email in Japanese, human translation will remain vital to businesses.

Their translations aren’t always perfect

In fact, often, they’re downright silly. Because the technology isn’t perfect, and there’s often no one with the linguistic expertise to properly proofread an automated translation, the translations produced are often sub-par.

Even the new Google Translate AI update, while a formidable piece of technology, cannot distinguish between potential subjects in a sentence. In an article by The Washington Post, the following example is highlighted:

“Given the sentence “The trophy cannot fit in the cabinet because it’s too big,” the model could mistranslate because it doesn’t know which “it” is the one that’s too big.”

If simple, common sense errors in machine translation such as this can still persist, then the jobs of human translators are certainly safe.

There simply are too many languages in the world

As yet, no one has programmed an automated translation tool which can function in every known language in the world.

There are between 6000 and 7000 languages in the world (that we know of), and roughly a whopping 1000 of these have some kind of economic significance. At last check, Google Translate caters to around 100, Facebook 101, and Microsoft Translator a mere 62. While you may be hard pressed to find a translation company which can cater to every single one of the economically significant languages in the world, if you look carefully enough, there will be a translation company out there that can cater to your language needs

Total Number of Planning Permission Applications in England Has Fallen by Almost a Quarter Over the Last 10 Years

Property

Elliot

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7 November 2017

0

Total Number of Planning Permission Applications in England Has Fallen by Almost a Quarter Over the Last 10 Years

Government data has revealed less planning permission applications are being submitted than a decade ago.

Over the past year, there has been great scrutiny over the UK finance and property markets and the latest government planning permission release has proved an interesting read.

As part of its ongoing campaign to educate investors about the development process, commercial property finance broker, Pure Commercial Finance has drawn attention to statistics which reveal the number of planning permission applications made in England has dropped 25% since 2007.

Back in 2006/2007 there were 645 planning permission applications received in England. This fell to just 486 in 2016/2017.

Further research has revealed that in the year ending 31^st March 2017, the least likely place to get a major planning application granted was in Epsom and Ewell, Surrey, where just 38,46% were granted. Spelthorne and Bournemouth also saw low success rates with 50% and 52.08% of major development applications granted respectively.

Despite this decrease in planning applications, the probability of plans being granted has improved. Ten years ago, 82% of applications were granted, but last year this rose to an 88% success rate. Furthermore, in 2016/2017 there were 18 locations in England where 100% of all major planning applications were granted. This included high population growth areas such as the City of London.

Ben Lloyd, Co-Founder and Managing Director at Pure Commercial Finance, said:

“Commercial property finance is our bread and butter and we help arrange funding for development projects across the country on a daily basis, so we were intrigued to see where these were most likely to get permission and at what rate.

“We are pleased to see a number of planning bodies across the country are keen for the redevelopment and expansion of property on offer in their areas, and are delighted to provide our current and future clients with an insight into this data.”

For further insights into the data analysed and to read the full report click here.

5 Ways to Boost Employee Efficiency

Business

Elliot

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7 November 2017

0

Business leaders and managers all work toward the same goal of improving the efficiency of employees. Many people mistake this process for saving as much time as possible. But saving time doesn’t do your business any favor if your workforce doesn’t know what to do with that time. This explains why some businesses still fail to reach their objectives even if the workers exceed the standard 40-hour work week. The following are some tips on improving employee efficiency:

1) Match Tasks to Skills

What did your employees go through before getting hired? A job interview, right? This interview is meant to learn as much as you can about prospective workers. It’s not all about reading their resume and looking at credentials. You should take the time to know the skills and behavior of your employees so you can match them with the appropriate tasks. For instance, an out-of-the-box thinker may be the best person to pitch unique ideas to clients. But giving the same person a detail-oriented task could end up catastrophic.

2) Introduce Telecommuting

Afraid of letting your employees work from home? This can prove to be a scary thought for anyone who hasn’t tried it before. Interestingly, many studies show that those who work from home are more productive than those who are stuck in the office. It’s high time to embrace telecommuting. Voice-to-voice communication may be traditional, but it beats chatting and exchanging emails especially for urgent concerns. Setting up a virtual phone number can be an excellent investment. You can get yourself a 029 number, for example, to increase the reach of your business while using the virtual phone system to streamline communication within your team.

3) Delegate Effectively

After learning the skills and work styles of your employees, it’s time to figure out how you can delegate tasks effectively. A lot of managers think this is easy at first, but effective delegation proves more difficult than it sounds. There’s also the constant thought of your employees not living up to expectations. You might end up going over the same tasks you have given them just to double check. But this wastes so much time. It’s important to trust your employees. You hired them after all, so provide them the opportunity to boost their skills and acquire leadership experience.

4) Give Incentives

In Economics 101, we learned that people respond to incentives. Sometimes, it’s not enough to tell your employees to be more efficient. You have to give them a reason to take action. This doesn’t necessarily equate to a raise. You can offer them a paid time off, a free meal, or even a simple “thank you” note. When you recognize their efforts, your employees will feel more compelled to work efficiently.

5) Exchange Feedback

There are cases in which employees do not realize they’re being inefficient unless you tell them. If you’re not doing performance reviews, then you’re probably wasting countless hours. These reviews are important to let your employees know about things they excel at and the areas they need to work on. It’s also beneficial to hear from your team. Ask them what you can do in helping them improve. This allows you to formulate an effective and immediate strategy based on what your employees actually need.

Three Changes that May Change Your Trading Result

Elliot

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6 November 2017

0

Three Changes that May Change Your Trading Result

New traders spend a lot of time reading and learning. There is a ton of information available online and this is widely used by beginners. However, oftentimes, once a trader has developed their trading plan and begun trading, they put their learning aside and just stick to making trades. Here we will look at how you can continue to improve your trading result by making these 3 changes that will help you continue to learn and invest time in your trading plan.

Practice, Practice, Practice

There is a lot to learn and the best way to learn is to practice. Continue reading information online, but don’t make the mistake of keeping it theoretical. Make sure to put what you read into practice. But, don’t just practice anything and everything you read. Create a trading plan and practice something specific until you become fantastic at that. Start off by practicing one component of your trading plan. Open up a demo account and put that strategy to work. Do this until you really have it and then move on to the next component of your trading plan and focus on that. Put in the hours, but be specific. And at the same time, make sure you continue to read and learn about the component you are focusing on.

Review Your Trades Daily

Simply practicing a trading strategy will not help unless you review your trades. This gives you the opportunity to critique your plan and how well you are able to follow it (self-review). Self-review should be done on a daily basis. You need to go back to every trade you placed and see how well you followed your trading plan, if there were trades you took when you shouldn’t have or trades you should have taken, but didn’t. Look at how well you stuck to your exit plan or if you hung on to trades for too long or exited too early. At the end of the week and again at the end of the month, go through your self-reviews and find the patterns so you can work on improving in those areas. At the end of the month, check your trading plan by analyzing trends and outcomes and work out where you can improve it.

Tweak Your Trading Plan

Reviewing your trading plan is not enough. You need to improve the plan itself based on that review. Don’t make changes before a full month of trading has passed – your plan needs to look at long-term trading rather than individual trades. Make sure to only make small changes at a time as these will be easier to implement and practice during the month. Also, do not make many changes at once or it will be too difficult to isolate which of the changes worked and which didn’t. Once you have made a change, use your new trading plan for a full month and then review it once again. Continue this process until you feel confident that your trading plan is working ideally.

Here are 3 Business Ideas that Changed the Market Scene after Brexit

Business

Elliot

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6 November 2017

0

Here are 3 Business Ideas that Changed the Market Scene after Brexit

Before the referendum, all predictors seemed to have the same opinion that, thanks to Brexit, Britain was headed for an economic apocalypse. The uncertainties and scaremongering seemed to skyrocket and businesses and entrepreneurs were even more hesitant to explore opportunities. In the months after, however, even with the potential future uncertainty, the start-up community is booming and many Brits are seizing the opportunity to create new businesses, abandon their daily jobs and explore entrepreneurship.

People have come to the realization that the basic steps involved in creating a business has not really changed and even with the predicted impact of Brexit on funding small businesses, Banks will continue to back propositions that seem solid. Here are a few business ideas that changed the market scene after Brexit.

Brexit Consultancy Services

The impact of the UK leaving the EU is likely to stretch out over years. While UK businesses were still unsure of what measures to put in place to appropriately cater to Brexit, the management consultancy sector came up with Brexit consultancy services to bridge this gap. Both the sectors providing financial services and the public sector need consultants to navigate Brexit successfully. A survey of companies that use consultants revealed that 24% already had to increase their use of consultancy services as a result of Brexit.

While businesses can only hope to respond to situations as they unfold, having the services of an expert on Brexit to help them deal with incoming legislation and bureaucracy will give them the upper hand against revenue loss and any arising legal issues.

Insurtech

Insurance technology is one of the latest technology branches which is related to insurance as you can easily guess from its name. Insurtech creates insurance as an in on-demand mobile services that enable customers to easily buy their insurance from their mobile phone with the push of a button.

Insurtech has developed rapidly in the post Brexit economy and recent skyrocketing of investments in insurtech has caused such a disruption that only insurers and brokers that embrace the new technologies are expected to evolve and thrive.

Proptech

Property technology is an emerging trend in the property market, using technology to upgrade and reform or completely redefine the services involved in the buying and selling of property. Despite the slump in the UK national housing market, which could be blamed on the uncertainties and increase in stamp-duty post Brexit, proptech start-ups are making waves in the business community.

Two proptech start-ups were named in WIRED’s top 10 hottest start-ups in London this 2017. Proptech has been defined as some as “a silver lining” of Brexit, due to its ability to make the processes involved in the traditional property market more efficient, less costly and redundant. Proptech startups help speed up mortgage applications, as well as sale of property. Owners also get a fair price for their property due to their increased efficiency in the sales process with the use of technology.

The Brexit impact on businesses has only made investors more cautious. More and more start-ups are taking advantage of a post Brexit UK to create their niche or improve upon existing services.

4 Key Insights All Small Business Owners Should Know

Business

Elliot

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6 November 2017

0

4 Key Insights All Small Business Owners Should Know

A small business is a big responsibility. Making the right choices early on will establish the security, efficiency and organisation that a business needs in order to grow. Before you launch your company, you should be aware of four key factors that could affect its success, and help with the smooth running of your new operation.

Get your personal credit score as high as possible.

Particularly in its early stages, a small business will require loans. If your credit score is sub-standard, you’ll have to take out smaller loans at a higher interest rate. When starting a small business, you’ll want to have the bandwidth to borrow as much as is necessary. Therefore, it’s a matter of getting your credit score up to scratch.

Whilst exact numbers might vary, here’s an example of a general credit score breakdown.

Excellent/very good: 700 to 850
Good: 680 to 699
Average: 620 to 679
Low: 580 to 619
Poor: 500 to 579
Bad: 300 to 499

Whilst credit scores don’t lend themselves to a quick-fix solution – they tend to be the product of of long term borrowing practice – there are things you can do to help improve a credit score:

Register to vote. If you’re not on the electoral role, you’ll find it harder to get credit.
Check your file. Little mistakes can impact your score, so make sure all your information is accurate and registered correctly.
Pay bills on time. Prove your reliability by responding when payments are due (even something like a phone contract can be used to show diligence)
See who you’re linked to. If another individual’s credit rating is connected to yours through a joint account, their poor score might be affecting your own.
Route out fraud. Somebody applying for credit in your name is a clear cause for concern. If you have reason to suspect fraudulent activity, make sure to update your file immediately.
Reduce existing debt. If possible, eradicate or minimise outstanding debt before applying for new credit.
Stay put. Evidence of living at the same address for a significant period of time is often appealing to lenders.

Find the right accountant

Small business accountants provide invaluable advice on financial infrastructure and economic planning. A reliable accountant will allow you to delegate financial management as your company begins and grows.

Few small businesses have the funds to hire an in-house accountant. But technological progression has meant that, through the automated outsourcing of accounting processes, similar services can be procured at a lower cost.

There are many small business accountants based in London, but the best services will provide you with online accounting software and a dedicated personal assistant. Cloud-based applications make remote accounting a convenient option, and several services will offer packages tailored to the needs of a small business.

Separate business and pleasure

Your personal and business accounts should be kept discrete. Failing to separate your personal finances from those of your business will be logistically and economically problematic. Not only will it be more difficult to keep track of expenses, manage the payment of employees, share details with investors and receive or deposit payments – not having a separate business account will prevent you from designating certain items as write-offs.

Whilst familiarity is appealing, when setting up a business account, don’t just go straight to the bank you’ve used as a consumer. Be sure to check out the competitors, as other account servicing options might offer more valuable expertise.

Know what you require before choosing a banking policy for your business. Think about what services you’ll need; whether it’s cash management or a balance transfer credit card, you’ll want to do some research before setting up a new account.

Have affinity with your bank

The relationship between small businesses and banks has a reputation for being complicated. Applications for this year’s Future of Fintech awards were dominated by the observation that ‘small businesses are poorly served by banks’.

In September 2017, many small firms accused HSBC of freezing their assets or closing their account without notification. Small business owner Calan Horsman complained that the suspension resulted in his company losing a month in production schedule, as his stock was stuck in China. Kelly Molson, co-founder of a design agency, accused the bank of essentially shutting down her business without warning.

These potential tensions make it all the more important to choose wisely when it comes to small business banking. Make sure you check fees and compare facilities such as overdrafts, online banking, advice and overseas banking, before deciding who to bank with. It may be the difference between business collapse and economic take off.

How much does it cost to rent a kitchen for your food business?

Business

Elliot

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6 November 2017

0

How much does it cost to rent a kitchen for your food business?

You may have delicious recipes, dedicated staff and a determined mindset, but you’ll never get your food business off the ground if you don’t have a commercial kitchen. Kitchens are at the heart of every food and catering company, but it rarely makes sense for a new business to buy one outright or rely solely on a home kitchenette. That’s where renting comes in.

A rented commercial kitchen can act as the perfect base for a pop-up restaurant, food truck, or catering company. But renting a commercial kitchen doesn’t always come cheap. Here are three things to keep in mind to get the most for your money.

Monthly rental costs

A commercial kitchen’s monthly rental cost will be one of your business’ biggest expenditures. Depending on a number of factors, kitchen rents can be anything from £100 to £1,000 per week.

Finding the right cost for you is more complicated than picking the most affordable, though. It all depends on what each rental kitchen includes. Dephna offers rental commercial kitchens with cold storage on site, which can make the day-to-day running of a kitchen so much easier. But they are unfurnished spaces so you will have to buy in all your own equipment.

Kitchens may come with multiple ovens, microwaves, workstations, mixers, stoves and baking utensils. Factor these facilities into your decision. A better-equipped kitchen with more practical storage space can be worth the extra money.

Some businesses take out loans to finance kitchen rentals, viewing it as an essential expenditure that is too important to sacrifice.

You business’ location

Your business’ location should play an important part in your rental kitchen calculations. Depending on where you are, renting a kitchen nearby could be difficult. This is especially true if you are based in the centre of a city, where rental costs are often high.

London, for example, has been crowned the second most expensive city in the world to rent in. If you’re operating in an area as expensive as this, it’s worth looking further afield for a commercial kitchen and transporting your food between destinations.

The cost of transport will add to your overall kitchen expenditure. If you’re travelling too far between kitchen and venue it might be worth biting the bullet and paying the higher premium for a local rental. But if it does work out cheaper, there’s no reason not to go the distance.

If you’re yet to lockdown a location for your catering company, it’s worth scouting around for towns or cities with a good ratio of affordable kitchen space to hungry customers.

The cost of kitchen equipment

Even when a kitchen comes with many facilities, it’s likely you’ll still need to invest in some kitchen equipment.

The Balance’s commercial kitchen equipment checklist includes dozens of items that you will have to buy before your food business can really get started. Your rented kitchen may not come with its own pans, stockpots, tongs or spatulas, for example. Purchasing these items in bulk can be expensive, so The Balance recommends buying used kitchen equipment as a way to save money.

It’s also possible to hire out commercial kitchen equipment whenever you need it. This will cost less in the short term, giving your business time to earn money and pay for equipment of its own.

With a catering business, there are also expenses for simple supplies like trays, bowls, cartons and even cutlery. These, too, should be considered, though their prices are likely to be lower than equipment and facilities.

Consider low budget alternatives

If all of this is sounding like a little too much, there are other ways to launch your catering business. If it’s feasible, you could start small and use your home kitchen. It’s also an option to use a food van with its own oven if you plan to serve a smaller number of customers at a time.

These solutions might suit your business model, or they could act as temporary solutions. Either way, they can help push back the inevitability of renting a commercial kitchen until you are financially ready for it.

Investing for Cash Flow

Incorporating Appreciation in Investments

Factors to consider for maximum benefits

Some advantages of incorporating appreciation in investment

Reduced Cost of Taxation

Cheaper Operation Costs

Lower Salary Demands

Increased Market Penetration

Better Investment Opportunities

Brexit Consultancy Services

Insurtech

Proptech

ABC Money 2025 - 1st Edition