OUGD502: Cost of Rent and Wages

by Roxxie Blackham on Sunday, 20 April 2014


Where? 
We researched into rentable creative spaces in London, with East London (creative and cheap area) in mind. 

We found a studio space on Gumtree, as seen below:


This was way too expensive and way too big for our use, so we went on the website to look further into space for rent. 

Netil House (in Hackney) seemed liked a great option. 

Room 107C 

Below you can see the space we would rent out. It's only 100 square ft, but as a studio of two people, this would suffice. We will only need enough space for our macs, desks and somewhere for clients. Most of the jobs will be performed on site, or on the computer.

The price is £280 per month, very cheap for a studio. This obviously would work out as 140 pounds each a month. 

Other benefits of this location: 

All Studios at Netil house have access to:
- Reception service from 8am - 8pm
- 24 hour studio access
- High speed wifi and VOIP telephones
- Night security, fob access and CCTV cameras throughout the building
- IT support
- Metered electricity
- Central heating
- Communal tea stations and seating areas on every floor
- Goods lift and passenger lift
- Platform café and bar with sun terrace overlooking Hackney
- Post collection service
- 5000 sqft events and shoot space (available to residents at a discounted rate)
- Free fruit delivered once a week to all tea stations
- Membership of Netil 360, Netil House and Hackney Downs Studios
- Located near London Fields and Broadway Market


Studio B - The Future Studio Space

 We hope to move over into the larger studio space when the business grows and we can afford to rent out a larger and more exciting area!



                                                                                                                                                                     

Calculations

How much will the rent be annually? 280 x 12 = 3360. 3360/2 = £1680 each. 

How much will we be earning? We intend on working at just £10 an hour when the business first starts out. The below sum is assuming we both work 9am to 5pm, with an hour lunch, 5 days a week. We will also have 2 weeks paid leave a year. 



So at the end of the 2014 tax year, we would both earn £15,330 each, or £30,660 together. 

This cost will be covered by the cost of selling fonts as well as how much we charge our customers for sign painting and typographic murals.







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