Shared Business: UK Costs, Tools & First Customers
Startup Cost: £50–£300 | Difficulty: Beginner | Time to Start: 7 Days | Business Type: Local
In today's competitive property market, getting on the property ladder can be a daunting task, especially with rising prices and deposits out of reach. However, what if you could invest in property together with friends or like-minded individuals? Shared property investing is a creative solution that allows multiple investors to pool their resources and buy a property together. This business model offers a real and repeatable opportunity for UK investors to make a profit.
Real UK Business Example
CoWorking London Shared desk operator with sites across the capital renting space to UK micro businesses. Space brokers earn commission on referrals.
What is Shared Business?
Shared property investing is a unique business opportunity that allows you to create value for people who thought they'd never own a property. By bringing investors together and facilitating deals, you can earn a lucrative income while making a positive impact on the lives of others.Video Breakdown
The video covers the basics of shared property investing, including the tools needed to get started, how to build credibility, and the potential revenue streams. You'll learn how to work with a lawyer to build a standard contract, how to network and market your business, and how to start small with a group of investors. Watch the full video on YouTube for the full walkthrough.Key Takeaways
- Shared property investing allows you to create value for people who thought they'd never own a property.
- You'll need a lawyer to help you build a standard contract and negotiate deals.
- Networking and marketing are crucial to building credibility and attracting investors.
- Start small with a group of three to four investors and expand as your systems tighten up.
Startup Costs in the UK
MicroBiz365 keeps costs under £300; free tools and our PDF where possible. Here's a breakdown of the estimated costs:| Item | Approx. Cost (UK) | Notes |
|---|---|---|
| Lawyer services | £100-£500 | Depends on the complexity of the contract and the lawyer's fees. |
| Marketing materials | £0-£100 | Free templates and design tools can be used to create marketing materials. |
| Online platforms for property listings and deal facilitation | £0-£50 | Free or low-cost platforms can be used to list properties and facilitate deals. |
| Networking events and meetups | £0-£100 | Free or low-cost events can be attended to network and market the business. |
| Contract template | £0-£50 | A free or low-cost contract template can be used to create a standard contract. |
Tools & Equipment Needed
- Lawyer services
- Marketing materials (free templates and design tools)
- Online platforms for property listings and deal facilitation (free or low-cost)
- Contract template (free or low-cost)
- Networking events and meetups (free or low-cost)
How to Start
- Work with a lawyer to build a standard contract that handles investment shares, exit strategies, and payouts.
- Build your credibility by being part of a deal yourself and showcasing actual deals, what's been earned, and what's forecasted.
- Utilize networking events, casual meetups, and house party pitch nights to showcase your business and attract potential clients.
- Join golf clubs, business groups, and investors' circles to leverage your network and get people talking about your shared property investing business.
- Start small with a group of three to four investors and expand as your systems tighten up.
Earnings & Scaling
Potential earnings could be £10,000 - £50,000 per year, depending on the number of deals facilitated and the level of involvement. You can earn revenue from deal facilitation fees, exit bonuses, and affiliate commissions with agents or mortgage brokers.Pros, Cons and Risks
- Pros:
- Low startup costs
- Potential for high earnings
- Opportunity to create value for people who thought they'd never own a property
- Cons:
- Requires networking and marketing efforts
- Dependent on the number of deals facilitated
- Risk of legal issues if contracts are not properly drafted
UK-Specific Tips
- Ensure you comply with HMRC regulations regarding tax and investments.
- Use platforms like Etsy or Facebook Marketplace to list properties and facilitate deals.
- Join local business groups and networking events to connect with potential clients.
FAQ
What is shared property investing?
Shared property investing is a business opportunity that allows you to bring investors together and facilitate deals, creating value for people who thought they'd never own a property.How do I get started with shared property investing?
To get started, you'll need to work with a lawyer to build a standard contract, build your credibility by being part of a deal yourself, and utilize networking events and marketing to attract potential clients.What are the potential earnings of shared property investing?
Potential earnings could be £10,000 - £50,000 per year, depending on the number of deals facilitated and the level of involvement.How can I protect myself from legal issues?
Ensure you work with a reputable lawyer to draft contracts and ensure compliance with HMRC regulations.Conclusion
Starting a shared property investing business in the UK can be a lucrative opportunity for those willing to put in the effort. With low startup costs and potential for high earnings, it's worth considering this business model. For more ideas on starting a business in the UK, browse more ideas on MicroBiz365.
