Starting a business can seem like a daunting task, especially when considering the financial investment required. However, there are many businesses that can be started with minimal initial capital, allowing aspiring entrepreneurs to pursue their dreams without breaking the bank.
The UK offers a fertile ground for such ventures, with its diverse market and supportive business environment. Starting a business in the UK can be accessible and financially feasible. There were 5.3 million microbusinesses in the UK in 2023.
There are nearly a third more small and medium businesses trading today than there were ten years ago, and these enterprises have created 73 percent of all new jobs since 2010. The UK’s entrepreneurial spirit is alive and thriving.
With its diverse market and supportive business environment, aspiring entrepreneurs have ample opportunities to launch ventures with minimal initial capital. Here, we explore ten updated low-cost business ideas that can be launched in the UK, tailored specifically for Londoners and the UK market.
Disclaimer: The information shared in this post was correct at the time of publication but may be subject to change.
1. Freelance Services
A. Writing
Freelance writing is a versatile and low-cost business that can be started with just a computer and an internet connection. Businesses constantly need content for their blogs, websites, newsletters, and marketing materials, creating a steady demand for writers.
To get started, you should identify your niche—be it technology, health, finance, or another area—and build a portfolio showcasing your writing skills. Platforms like Upwork, Freelancer, and Fiverr are excellent for finding initial clients. Additionally, marketing yourself through social media and LinkedIn can help attract more clients. While building a client base takes time, delivering high-quality work consistently and meeting deadlines will help establish your reputation.
With the rapid advancement of Artificial Intelligence writers can provide their work with better efficiency and accuracy, which eventually enhances the value of freelance writers in the market.
Investment: £0 – £200
Costs: Computer (if not already owned), internet connection, website domain for portfolio (optional).
Why Now: The digital content market in London is booming, with businesses increasingly relying on high-quality content to engage audiences and improve SEO.
B. Graphic Design
Graphic design is another freelance service that requires minimal investment. With access to design software such as Adobe Creative Suite or free tools like Canva, you can start creating logos, social media graphics, and print designs for clients. Building a strong portfolio is crucial, and showcasing your work on platforms like Behance and Dribble can help attract potential clients. Networking within design communities and participating in design competitions can also boost your visibility. Although staying updated with design trends and managing client expectations can be challenging, continuous learning and developing a unique design style can set you apart from the competition.
Investment: £100 – £1,000
Costs: Design software (Adobe Creative Suite subscription or similar), computer, website domain for portfolio (optional)
Why Now: Visual content is more crucial than ever for branding and marketing, especially in London. Businesses are willing to invest in compelling visuals to stand out in crowded markets.
C. Web Development
Web development skills are highly sought after as businesses increasingly rely on their online presence. Starting as a freelance web developer involves offering services such as website creation, maintenance, and optimisation. Basic knowledge of HTML, CSS, and JavaScript is essential, and you can expand your expertise by learning popular frameworks and libraries. Creating a personal website to showcase your portfolio and finding clients through freelance platforms can kickstart your business. As the technology field is ever-evolving, staying current with industry trends and continuously improving your coding skills are crucial for long-term success.
Investment: £200 – £1,500
Costs: Learning resources (courses, books), computer, software, website domain for portfolio.
Why Now: As more businesses in London transition online, the demand for skilled web developers continues to rise. This field offers numerous opportunities for specialisation and growth.
2. Catering
Begin by enrolling for online training about food safety and hygiene. After your certification, you can start your own catering business.
Make a minimal investment to start and begin by working the party circuit (both birthdays and anniversaries). After you understand the ropes and have a good relationship with vendors, scale up to weddings.
It helps if you know how to prepare food, and of course, you need some understanding of experimenting with alcoholic beverages to make memorable cocktails. However, the domain has remarkably low barriers to entry.
Investment: £500 – £2,000
Costs: Food safety certification, basic kitchen equipment, initial ingredients, and marketing materials.
Why Now: With a strong culture of events and gatherings, London presents a thriving market for catering services. The demand for high-quality, unique catering options is on the rise.
3. Fitness Studio / Personal Trainer or Fitness Instructor
There is a mistaken idea that gyms have to be huge and spread over 3,000 sq ft, which most probably comes from the USA, where real estate is relatively inexpensive compared to the UK.
A yoga studio needs to be no more than 500 sq ft with a large mirror and several yoga mats being the only investment.
Start your own Facebook page, Instagram account, and YouTube channel, and start marketing by yourself with well-made videos. For more tips and tricks about social media marketing check the internet marketing blog.
If you have expertise in fitness and a passion for helping others achieve their health goals, becoming a personal trainer or fitness instructor can be a rewarding business. This can be started with minimal investment, especially if you offer virtual training sessions via platforms like Zoom. Obtaining certification from recognised organisations like the National Academy of Sports Medicine (NASM) or the UK’s Register of Exercise Professionals (REPs) can enhance your credibility. Offering group classes, personalised training programs, and nutritional advice can diversify your services and increase your income.
Investment: £200 – £1,000
Costs: Certification courses (e.g., NASM, REPs), fitness equipment, and marketing materials.
Why Now: The health and wellness industry is growing rapidly. With a focus on healthier lifestyles, many individuals in London seek personalised fitness guidance.
4. Digital Marketing Company / Social Media Management
Take an online course and jump into the field of digital marketing. Start with a single client and cultivate success out of it.
This is a topic where endless resources are available online. You must obviously work hard to get the first few clients and work for a lower rate to start with, but don’t let it daunt you.
The biggest perk is that you can work from your bed and design a campaign that will influence millions. The secret sauce: find your unique style, make your research unbeatable, and you will be successful. And if you wish to get started in the digital marketing industry, learning local business search engine optimisation is a great niche. You can read the list of SEO consultants in London who have taken the path to build their successful agencies or get inspired by other digital entrepreneurs.
Also, with businesses increasingly relying on social media for marketing, social media management is a valuable service. This involves creating content, scheduling posts, and engaging with followers on behalf of businesses. Starting this business requires minimal investment—a computer, internet connection, and knowledge of social media platforms like Facebook, Instagram, and Twitter. Building a strong online presence and showcasing your skills through your own social media accounts can attract clients. Offering additional services like analytics reporting and paid advertising management can further enhance your value.
Investment: £100 – £1,000
Costs: Online courses, marketing software, website domain, advertising budget.
Why Now: As businesses increasingly rely on digital marketing, the demand for skilled professionals in this field continues to grow in London. This is a perfect time to leverage your expertise in digital marketing.
5. Tutoring Services
Tutoring is a rewarding and low-cost business that leverages your knowledge and expertise. Whether it’s helping school students with subjects like maths and science or preparing them for exams, the demand for personalised education is growing. With the rise of online education, offering tutoring services remotely via platforms like Zoom or Skype has become easier.
Creating profiles on tutoring websites such as Tutorful or MyTutor can help you reach a broader audience. Additionally, offering group sessions or creating educational content can diversify your income streams. Patience and excellent communication skills are key to building a successful tutoring business.
Tutoring provides an opportunity to make a positive impact on students’ lives while earning an income.
Investment: £0 – £200
Costs: Computer, internet connection, marketing materials, website domain (optional).
Why Now: The demand for personalised education is growing in London, with parents and students seeking additional support outside traditional classroom settings.
6. Makeup Artist
Weddings will continue to be big events that people want to look their best for. So, why not build a business within the wedding services industry? It is all about finding your niche, finding something you’re passionate about (from being great with bridal makeup to being a dependable bargain hunter).
There is a minimum investment, but of course, a period of internship is required. You would have to work for free (almost) at first, but as you build up a reputation and gather reviews, you will find it easier to price your service competitively.
Investment: £300 – £1,000
Costs: Makeup kit, training courses, marketing materials.
Why Now: The events industry in London is bustling, providing ample opportunities for makeup artists to thrive. Building a niche, such as bridal makeup, can set you apart from the competition.
7. Dropshipping
Dropshipping is an e-commerce business model where you sell products without holding any inventory. When a customer makes a purchase, the product is shipped directly from the supplier to the customer.
This eliminates the need for a large initial investment in stock. Platforms like Shopify or WooCommerce or SeekaHost can help you set up your online store. Researching and choosing a profitable niche, finding reliable suppliers through directories like AliExpress or SaleHoo, and focusing on marketing are key to success in dropshipping. Leveraging social media and search engine optimisation (SEO) can drive traffic to your store, but be prepared for competition and the need for effective customer service.
Dropshipping offers the advantage of low startup costs and the flexibility to operate from anywhere. However, it’s essential to thoroughly research your niche and suppliers to ensure product quality and reliability. Effective marketing strategies, such as influencer partnerships and paid advertising, can help you reach a wider audience. Building a user-friendly website and providing excellent customer service is critical to retaining customers and generating repeat business.
Investment: £200 – £1,000
Costs: E-commerce platform subscription (Shopify, WooCommerce), marketing budget, domain name.
Why Now: The e-commerce industry is booming, with consumers in London increasingly comfortable shopping online. Dropshipping offers a low-risk way to enter this market.
8. Virtual Assistant
This is another interesting business on the list, a virtual assistant provides administrative support to businesses and entrepreneurs from a remote location. Tasks can include managing emails, scheduling appointments, handling social media accounts, and more. This remote business requires minimal investment—mainly a computer and internet connection.
To get started, identify your skills and target market, and join virtual assistant networks and platforms like Belay, Time etc., or PeoplePerHour to find clients. As you build a reputation, you can offer specialised services such as bookkeeping or marketing assistance. Good organisational skills and the ability to multitask are essential for success in this field.
Investment: £0 – £200
Costs: Computer, internet connection, marketing materials.
Why Now: The remote work trend is here to stay. Many businesses and entrepreneurs are seeking virtual assistants to help manage their workloads efficiently, even if you are based out of London, you can work with clients all over the world.
9. Handmade Crafts
If you have a talent for creating handmade items such as jewellery, clothing, or home decor, turning it into a business can be both fulfilling and profitable. Platforms like Etsy provide a marketplace for handmade goods, allowing you to reach a global audience. Starting with a small inventory and gradually expanding based on demand is a cost-effective approach.
Social media platforms like Instagram and Pinterest can be powerful tools for showcasing your products and attracting customers. Participating in local craft fairs and markets can also help increase visibility and sales. Consistent quality and unique designs are critical to standing out in the handmade crafts market.
Investment: £100 – £1,000
Costs: Raw materials, tools, Etsy listing fees, packaging materials, marketing budget.
Why Now: The handmade crafts market has seen a resurgence as consumers increasingly seek unique, personalised items. London, with its vibrant arts and culture scene, offers numerous opportunities for artisans to showcase their work.
10. Pet Sitting or Dog Walking
This is another one, pet care services are perfect for animal lovers looking to start a low-cost business. Many pet owners require assistance with pet sitting or dog walking, especially during work hours or vacations. This business requires little more than a love for animals, some basic equipment, and possibly insurance. Creating profiles on pet care platforms like Rover or Pawshake can help you find clients.
Offering additional services such as grooming or training can increase your earnings. Building trust with pet owners and providing excellent care will ensure repeat business and referrals. Flexibility and reliability are important traits for success in this field.
Investment: £100 – £500
Costs: Basic equipment (leashes, toys), insurance (optional), marketing materials.
Why Now: The pet care industry is growing, with pet owners in London willing to spend more on quality care services for their animals. Building trust with clients can lead to repeat business and referrals.
Small Steps can lead to a great Business
None ever started a big business from scratch. It’s always a small business that can eventually grow into a big enterprise. After all, it’s a tiny acorn that grows into a mighty oak tree. Keep at it and keep on giving your best, and soon your business will be profitable if you learn the business game.
These ten low-cost business ideas demonstrate that with creativity, dedication, and strategic planning, you can successfully launch a profitable venture in the UK. By leveraging your skills, utilising online platforms, and focusing on providing excellent service, you can turn your entrepreneurial dreams into reality and start your business. We might feature it here on London Business News!
Each of these business ideas has its own set of challenges, but with persistence and a commitment to continuous improvement, you can overcome them and achieve success. Whether you choose to become a freelance writer, a graphic designer, or a social media manager, the key is to start small, build gradually, and always deliver value to your clients.
Keep at it and keep on giving your best, and soon your business will be profitable if you learn the business game.
If you want us to add a suggestion here based on your experience, please get in touch with us!
Author Profile
- Online Media & PR Strategist
- As the Chief of Marketing at the digital marketing agency ClickDo Ltd I blog regularly about technology, education, lifestyle, business and many more topics.
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