Author: Matt Morton

START ups are going for it. Shrugging off the effects of negative media headlines about the economic health of the nation, entrepreneurs have been enthusiastically tackling the business of … well, starting their own business.

The Simply Business Start-up Index showed the first rise in annual growth for start ups since the start of the recession in 2008. It was up by 3%.

No doubt such bubbling and welcome self-confidence has been boosted by the launch of Start-up Britain with enthusiastic backing from Prime Minister David Cameron.

“Small businesses and entrepreneurs are the lifeblood of the British economy and I am determined that we, working with the private sector, do everything we can to help them to start up and to grow in 2012. I want to encourage people to go for it and make this the year of enterprise,” said the PM at the launch of Start-up Britain.

But if more of you are showing the entrepreneurial spirit to join the growing ranks of small businesses, have you considered how you are going to meet clients?

What are the business travel options for start ups?

Well, quite simply the easiest answer is to use your existing car. However, you will need to make sure that it is insured correctly for business use, and that it is properly serviced to meet duty of care responsibilities.

That’s fine, of course, if your car is relatively new and looks presentable to clients. But what if it’s getting on and saddled with the odd ding? That doesn’t look quite so much the professional image you might want to portray.

There’s buying a new car, of course, which would help. But you would then be tying up funds on, say, an HP agreement when you really need to concentrate all your resources – particularly financial – into your growing business. Financial stress at the onset of a start up is never a good idea for any business if it wishes to thrive. Meanwhile it’s unlikely you’ll be able to get a business car lease as you won’t have any trading history.

So what else is there?

Public transport is one good option. It’s an ideal pay-on-use facility that is fully expensed against the P&L account. It’s also good for the carbon footprint of your business.

However, drawbacks include the network – does it go where you need  – and the cost. Train is becoming hugely more popular; it’s also becoming ever more expensive. For example a midweek train fare from London to Birmingham costs £65 return – and that’s before the train fare to London or the taxi at the other end is taken into account, pushing the final transport costs to around £100.

So what’s more cost effective, but still does the job? Well, car clubs can help and are well-suited to urban based small businesses. To use a car, you pay a fee to join the car club and after that pay on use for the car, usually by the hour. It’s very convenient.

Drawbacks, though, include limited availability of car clubs outside London, as well as a limited number of cars – what if the car is booked when you need it? And, is there a car club vehicle parked near your office or home business? Such issues could affect the usefulness of car clubs to any start up that requires mobility.

Have you considered car rental?

One solution similar to car clubs – but where you don’t have to pay a joining fee – is car rental. You simply pay for the time you need the car – usually a day’s hire – which includes business car insurance.

The cars are all new or nearly new vehicles and are kept in a condition fit for business – so there are no duty of care issues for either you or your staff.

There’s the flexibility of being able to choose a variety of vehicles, depending on the nature of the journey required – and vehicles are always available, usually at very short notice, while rental prices start from under £40 for the day.

Furthermore, you can pay by credit card – helping your firm’s nascent cash flow – by extending the credit period for a possible further 30 days. And both the day’s rental – and the VAT – are fully reclaimable as a business car tax allowance expense (provided the car is used on business of course!).

“If you are renting for business, Avis has a wide range of products and services to accommodate your daily and monthly rental needs,” says Declan Martin, marketing manager at Avis. “Call us on 0844 544 7733 and we can find a service that better suits your needs.”

Of course, you need to make sure with your accountant or financial adviser that the steps you are taking are appropriate and comply with tax regulations – they will be able to provide the professional advice – but for many reasons, business car rental makes a lot of sense for new start ups. It keeps your business flexible, mobile and reduces the cash flow stress on your business.

For a new business that’s exactly what you need – stress free transport. In every sense.