More businesses renting equipment to lower upfront costs

More small businesses are renting office equipment in order to reduce their upfront costs, according to a new study.

A poll of small business owners, conducted by O2, has suggested that it now costs just over £17,000 to run a small business in its first year, with 60 per cent of respondents claiming it would cost them less to launch their start-up now than it did in the past.

These reduced costs could tempt some would-be entrepreneurs to invest in a franchise agreement, so that they could work with a proven business model and potentially boost their chances of success.

According to freshbusinessthinking.com, almost half of those questioned in the study claimed that they have been able to reduce their overheads by renting equipment.

A phone line was the most popular piece of office equipment to rent, with office space, photocopiers, water-coolers and company cars.

Paul Lawton, who is a general manager of small businesses at O2, agreed that this was an intelligent for executives trying to navigate through the economic downturn.

He told o2.co.uk: “Small business still struggle to grow due to a lack of funding, but the good news is that many looking to start up have a number of alternative options open to explore, such as leasing, which can work out far more cost-effective in the long run.”