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Online business start-ups may provide commercial property boom

21th February 2011
The continued rise of online business start-ups could lead to an increased demand for commercial property, according to experts.

Richard Dodd of the British Retail Consortium suggests that while the initial cost of creating an internet-based company is low, the outgoings are very likely to increase as these businesses expand their client base and marketing efforts.

Successful internet business ventures may require commercial property as a base for distribution and an increased workforce. As a result, there is expected to be an increase in the number of commercial property enquiries in the coming months.

A recent study by the Centre of Retail Research on behalf of Kelkoo suggested that UK shoppers now spend more time internet shopping than any other consumers in Europe. British internet shoppers spent an average of £1,284 on 41 items last year compared to the European average of £908 on 25 items.

Internet retail sales have experienced an increase of 16 per cent over the last 12 months, meaning online marketers can potentially evolve their business sufficiently to require the use of commercial property.

Property demand is also expected to increase due to a brand new government initiative providing the nation with access to value-priced computers.

Jonathan Bowers, communications director at UKFast, said: “The programme will certainly be a boost for some people who don’t have a computer at the moment to go out and get one.”

With the number of UK internet users set to increase, there is potential for even greater online retail sales for internet businesses.
The scheme is set to provide personal computing for as many as 9.2 million Britons as the country seeks to follow through its target of ensuring all citizens have the opportunity to become digitally connected.

The Race Online 2012 initiative has been headed by Martha Lane Fox, who revealed to the Financial Times that the deal will “make it easier for people to access the internet, with telephone support on offer for those who need it.”

To become a successful entrepreneur it is important to have a diverse set of skills to cope with the everyday demands of business. Read our top four core business skills to ensure you have the acumen to run an internet business.

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