You don't need savings or a loan to start a business. Plenty of small businesses begin with a skill, a phone and a few hours a week. The trade-off is that low-cost ideas usually cost you time instead, and it can take a while before money comes in.
Below are the kinds of business you can start for very little in the UK, with honest notes on set-up costs, how quickly they tend to pay and the rules to check first. None of them comes with a guaranteed income. What you earn depends on your skills, your prices, your local market and the time you put in.
Service businesses based on skills you already have
The cheapest business to start is usually selling something you already know how to do. Bookkeeping, writing, design, admin support, social media, project management, photography: if an employer pays for it, a small business might pay you for a few hours of it.
Start-up costs can be very low, often just a simple website or portfolio and a business email address. Time to first income can be a few weeks if you start with people who already know you, and longer if you're building from scratch. The day rate calculator helps you work out what to charge.
If you're still employed, check your contract first. Some limit outside work, especially work for clients in the same field as your employer.
Local services
Dog walking, cleaning, gardening, ironing, decluttering, odd jobs and car cleaning all have steady demand and customers who come back every week. You often need little more than basic equipment and a way to get around, and local Facebook groups, neighbourhood apps and word of mouth bring in the first customers.
Costs range from a few pounds for cleaning products to a few hundred for garden tools. Time to first income is often quick, because people need these jobs done regularly. Public liability insurance is worth looking into before you work in people's homes or look after their pets.
Check the rules before you start. In England, GOV.UK says you need a licence from your council if you board dogs in your own home or run a dog day care business, even if you only look after a small number of animals. Selling from a stall, van or pitch in the street may need a street trading licence from your council, and trading without one can lead to a fine.
Tutoring and teaching a skill
School subjects, music, languages and exam preparation are the obvious ones, but adults pay to learn things too, from spreadsheets to sewing. Online tutoring needs little more than a laptop, a reliable connection and a quiet space, and means you're not limited to your local area.
Start-up costs are low. Income can come fairly quickly, though demand often rises and falls with the school year, so expect busier and quieter months.
If you'll work with children, expect parents and tutoring platforms to ask about a DBS check. In England and Wales you can request a basic DBS check for yourself online. It costs £21.50 and shows unspent convictions. Self-employed people can't apply for a standard or enhanced check themselves, so these have to go through an organisation, such as an agency or platform you work with. If you're in Scotland or Northern Ireland, the process is different, so check the service for your nation.
Freelancing online
Freelancing means taking on project work for clients anywhere, usually online: copywriting, graphic design, video editing, virtual assistance, web development or translation. Freelance marketplaces can bring your first jobs, but they're competitive, they take a fee, and early work is often cheaper while you build up reviews. Clients you find directly, through your network or by approaching businesses yourself, usually pay better.
Start-up costs are mostly a laptop and software you may already have. Time to first income varies a lot. Build a small portfolio of two or three sample pieces first, even if they're projects you set yourself, so clients can see what you do.
Reselling and making things in small batches
Buying second-hand items to resell, or making things like candles, prints, jewellery, cakes or clothing, can start small. The key is to test with a small batch before buying stock or materials in bulk, so you only spend more once you know what sells.
Costs are higher than for services, because you pay for stock or materials upfront, plus selling fees, postage and packaging. Margins can be thin. You might make a first sale quickly, but turning a profit after costs usually takes longer.
HMRC says you're probably trading if you sell things you bought to sell for a profit, or things you've made, even as a hobby. Selling your own unwanted possessions usually isn't trading. Platforms like eBay, Vinted and Etsy report sellers' income to HMRC, typically once you make 30 or more sales or about £1,700 or more in a calendar year, but being reported doesn't by itself mean you owe tax.
- Food: if you sell, cook, store or handle food, including from home or online, register with your local council at least 28 days before you start trading in England, Wales or Northern Ireland. It's free and can't be refused. If you work from home, you'll also need permission from your landlord or mortgage provider.
- Cosmetics: skincare, bath products and similar items need a safety assessment by a qualified safety assessor and must be notified to the Office for Product Safety and Standards before you sell them, or even give them away as samples, in Great Britain.
Digital products
Templates, printables, planners, guides, spreadsheet tools and short courses cost little to make if you have the skills, and you can sell the same product many times. That makes them appealing, but for most people they're also the slowest route to income, because nobody finds your product unless you already have an audience or rank in search.
Start-up costs are low, mainly your time and a selling platform's fees. Time to first income is often months rather than weeks. Digital products tend to work best alongside a service, where your clients' questions show you exactly what to make.
Tax and other things to check before you start
A few things apply to most new businesses. The first £1,000 a year of gross trading income is covered by the trading allowance, so you don't pay tax on it or need to report it unless you have to file a tax return for another reason. Above that, you'll need to register as self-employed for Self Assessment by 5 October after the end of the tax year you started. The side hustle tax calculator gives you a rough idea of what you might owe.
Also think about insurance, especially public liability if you meet the public or work in people's homes, and ask your council whether anything you plan needs a licence. This is general information, so if you're unsure, check GOV.UK or speak to an accountant.
How to choose the right idea for you
The best low-cost idea is usually where three things overlap: something you're already good at, something people already pay for, and something that fits the time you really have. For most people, services built on existing skills tick all three, which is why they're usually the quickest to get going.
Before you spend anything, test the idea with a real offer to a few people. Our guide on how to validate a business idea walks you through it. If you'd like help deciding where to start, the free business readiness quiz gives you one thing to do today and a seven-day plan.
- Write down five things people have asked you for help with or paid you to do.
- Cross off anything that needs money you don't have or a licence you can't easily get.
- For the rest, ask who would pay for it and how you'd reach them this week.
- Pick one and give it a fair test of a few months before switching.
Questions people ask
What business can I start with £100 in the UK?
Most service businesses based on a skill you already have, like freelancing, tutoring, cleaning or admin support, can be started for £100 or less, especially if you already own a laptop and phone. The bigger cost is usually your time.
Do I need to register my business before I start?
If you start as a sole trader, the main step is telling HMRC through Self Assessment once your gross trading income goes over £1,000 in a tax year. Food businesses must also register with their council at least 28 days before trading.
How quickly can a low-cost business make money?
It varies a lot. Services sold to people you already know can bring in a first payment within weeks, while products and digital products often take months. Our guide to side hustles that can make £500 a month has more on realistic timescales.
Do I need a DBS check to tutor children?
Parents and tutoring platforms often expect one. In England and Wales you can request a basic DBS check yourself for £21.50, but a standard or enhanced check has to be requested through an organisation, such as an agency or platform.