Coming up with a smart business idea is half the battle when starting any business. Small business ideas are a dime a dozen, but it’s important that you choose an inspired business idea based on your passions and interests to avoid running out of steam and losing interest. Ultimately the easiest business to start in the UK is one that you are driven to make a success.
Some examples include freelance writing, opening on online store, starting your own property management business (if a portfolio is possible for you), creative pursuits to sell online, making handmade products or providing simple services to other businesses and customers.
Ultimately you’ll want to consider creative small business ideas that can start with little money, and an online business is often the best way to go when trying to keep initial startup costs low.
Setting up your own business and being your own boss is certainly exciting, but you’ll also need it to be profitable. Small business owners know the struggle of getting their business off the ground. However, with guided support from our business experts at Real Business, you could find the whole process to be much smoother.
Table of Contents
Setting Up Your Own Business
Even with a great small business idea, starting out can be daunting. However, with the right preparation and planning you can take the stress out of the situation.
Below we’ll explore the key factors in setting up a business. From the best small business ideas and the pros and cons of each, to who should consider opening a business and some top tips for those that take the plunge – you’ll find it all throughout our post today.
Who Should Consider Starting A Business?
If you’re considering starting a business, but you’re just not sure if you’re right for it, then here is some advice that might just give you the push you need to finally take the plunge.
You’re a ready-to-go business owner if you:
- have a great business idea you’re truly passionate about (remember, startups take a lot of work, and your personal and professional lives will blur – make sure it’s for a business you’re passionate about)
- don’t mind facing risk – every profitable business idea in history has started out without guarantee of success – be prepared for this uncertainty
- have the funds to start your business yourself, or the means to secure funding through business loans, crowdfunding, etc
- aren’t afraid of long hours to turn your small business into a lucrative business – you could feasibly work for 50+ hours a week as you work to turn your business into a success
- have some experience in sales, marketing, accounting, or other relevant experience to your business (not essential, as these can all be learned, but it’ll certainly mean you get off to a running start)
If this sounds like you, then you could really shine as a business owner. Even if some don’t apply, they certainly will in time as you work towards your goals.
Easy Ideas For Your New Business Venture
Below we’ll provide a list of business ideas that are easy to set up, right here in the UK.
1. Freelance Services
Nowadays you can sell almost any skill as a freelancer online. From freelance writing to social media management, if you have skills other people need, then you have a good business idea. Let’s look at the good and bad bits if you’re considering this option:
| Pros: | Cons: |
| Low startup costs and you already have the expertise you need to make a success of it. | You don’t know exactly how much money you’ll make each month as client numbers fluctuate and the amount they pay will also. |
| Easy to get started right away and finding clients is much easier in this line of work – especially if your skill is in demand. | When you freelance you have to constantly fight for new business. It’s worth remembering that freelancing is competitive. |
| When you’re freelancing you’re in control of the hours you work and the type of work you take on. | As pay and workload fluctuates month on month, there’s no guaranteed income. This can make loan and mortgage applications difficult. |
There are multiple freelance service options you could look into:
- Copywriting
- Web design
- Bookkeeping
- Virtual assistance
- Tutoring business
The beauty about freelancing is that you can start your business as a side hustle originally. You can start small and build up to replace your full time role.
2. Selling Handmade Products
If you’re a creative type, then many small businesses have turned into huge success stories after starting out selling handmade items in person or at their own online store.
| Pros: | Cons: |
| A creative and fulfilling business because you get to create things you’re passionate about and see people enjoy those things. | Handmade products are very popular, but that also means the market is incredibly crowded so standing out can be difficult. |
| Another low startup business, especially if you already own a lot of the supplies for the items you’re creating. | If your business becomes a success then it’s worth remembering that scaling your operations could be difficult. |
| You don’t have to start full-time initially. You can slowly build your product offerings up until you’re ready to launch. | Each item needs to be made by hand. This takes time. Trying to ensure you make enough products to make enough money can be stressful. |
Some common products you could look into making include:
- Jewellery
- Soaps and beauty products
- Clothing and accessories
- Ceramics
- Candles
- Woodwork
Look at where you can sell these products. Local markets are an excellent option, but setting up your own e-commerce site is another great option and means you have a further reach.
3. Service-Based Business
Service-based businesses are a great option. They allow you to offer your services to multiple clients, and if you build a trusting reputation with loyal clients, then you could have reliable work.
| Pros: | Cons: |
| All you’ll need to start the business are some basic supplies to do the job you need. Look into insurances, however. | This is one of the more hands on business ideas you can start – be prepared for hard work and long hours to make it a success. |
| You can attract customers easily through traditional marketing measures like ads, flyers, and websites. | As a service based business you’ll be limited to local residents as customers, make sure there’s enough appetite for your services. |
| Building a strong relationship with repeat customers can be easy if you’re a people-person who values loyal customers. | Trying to scale to make your business more profitable can be difficult because of your limits as a one-person band. |
Some great service based business ideas include:
- Residential cleaning
- Personal training business
- Dog walking business
- Errand running for seniors or busy professionals
- Home inspection
You can even start out at hone as you build reputation and a customer base.
4. Online Retail Arbitrage (Buying And Re-Selling)
Retail arbitrage is essentially the practice of buying products in bulk, at a reduced cost, and then selling those individually at a higher price. Find products that are in high demand, and you can make a real success of your new business.
| Pros: | Cons: |
| When buying products in bulk for cheap prices, your inventory costs are much smaller than most traditional businesses | Whilst easy to find products to use, you have to consider your profit margins and sourcing these products can be hard |
| There is a potential option for you to start your operation out small at home, building as your customer base grows | You’ll have to make sure you have the time to list and ship the items you sell in a timely manner – this is time consuming so be prepared for that |
| This business model is easy to start as there are plenty of places you can buy items at a reduced cost in bulk | Keeping track of your inventory can be time consuming also – you’ll also need lots of space for storage too |
You should consider some of the following products as a potential retail arbitrage opportunity:
- Clothes and shoes (clearance sales)
- Health and fitness products (such as protein powder etc)
- Beauty items
- Overstocked health supplements
- Toys
You can find different options such as Amazon or eBay for buying in bulk, but you might find other options online, too. Consider the reputation of any businesses before buying and do your research, but there are great options to be found.
5. Information Products
You might not have considered how the things you’re knowledgable about could be turned into a business, but creating information products like ebooks, courses, and member sites can be a lucrative business idea.
| Pros: | Cons: |
| Low overheads initially as all you need to get started is some basic technology to share what you know | Whilst it doesn’t cost to get started, you’ll need to invest a lot of time into actually creating the courses or products to sell |
| Offering digital products reduces shipping and storage costs making your business model much simpler | In order to actually sell you’ll need to be an expert and be seen as an expert – reputation is everything for a business like this |
| Once the products have actually been created, income becomes passive – you won’t need to do much else besides market the products | You won’t be able to take a break from marketing if you want to drive more traffic and sales |
Some great information products you can consider creating and selling online include:
- eBooks
- Membership websites
- Premium content on tradition websites
- Templates for others such as personal training plans, meal plans, business plans, budgets, etc
- Online courses
You’ll want to create your own platform/website to sell from, helping to build a brand more easily and make your products instantly recognisable – but Amazon can be another great option as you start out.
Can Starting A Business Ever Be Easy?
If starting a business was easy, we’d all be doing it. Of course, setting up a business is difficult, but there are things you can do to make the process much easier:
- Opt for a lean startup model – a business model that allows you to take your products or services to market quickly with little development costs, allowing you to test the viability of your business idea immediately.
- You can make use of a lot of business tools and software nowadays that can automate previously very time-consuming and difficult tasks. Software for accounting, payroll, marketing etc, can all help save you time.
- Start small and test your ideas before going all in. You should start alone ideally, as hiring employees comes with more things to wrap your head around and you’ll want to make sure your business is stable before involving others.
- Look into different, more easily accessible funding ideas such as crowdfunding, personal savings, etc. This can help you get off the ground quicker.
- Accept help. Look to mentors, pay for online courses, and look for good free resources for business owners (like our free newsletter). Learning as you go is fine so long as you’re willing to accept help.
- Think about how you’re going to sell and deliver your goods or services initially. Online is usually best to keep overheads low until your business starts to develop a regular customer base.
- If you are going to set up as a company, then think about a simpler legal business structure like a limited liability company to avoid more complex legal structures.
Even with all of these tips starting your business will involve plenty of hard work and reacting to challenges that crop up unexpectedly. Focus on keeping startup costs low, think about your customers and who will benefit from your products and services and market them well, and you should be off to a good start.
Practical Tips For Setting Up Your New Business
Once you’ve got a strong business idea, you’ll also need to turn your attention to the logistics of setting up your business.
Business Name
Picking a business name can be incredibly stressful, because it has to be unique and memorable whilst also reflecting your business properly. Make sure your chosen name isn’t already in use and then register it as your own if it’s free.
Decide On Business Structure
You can choose between a sole trader set up, business partnership, limited liability company, and more. Look at the structure of each and decide which works for you.
Know Which Licenses And Permits You Need
Depending on the industry you work in, you might require certain licenses and permits. Some key industry examples include:
- childcare
- food services
- transport
Open A Business Bank Account
Setting up a business account is integral to organising your business finances and ensuring you keep your personal and business finances separate.
Consider Your Accounting
Using accounting software is a great way to track income and expenses and to work out what taxes you owe – amongst other things. As a new business, this is all that is often required to keep on top of things. For more established businesses an accountant or accounting team might help, but for now, start small and use software that can support you.
Create A Business Plan
A thorough business plan is necessary if you’re going to turn your idea into a successful business. A business plan ought to include:
- info garnered from market research
- branding ideas
- operational plans
- financial projections (including initial funding)
- marketing ideas
Start Building A Team
When you’re first starting out you won’t have employees per se, but you might want to consider freelancers who can help you get things off the ground. Want to create a recognisable brand? Talk to a designer. Considering launching with a shiny new website? Talk to web development and design experts. No successful business has ever been built in isolation, even if you don’t have employees from the start.
Arrange Insurances
Insurance isn’t a waste of money as a new business, it’s a protection. As a bare minimum general liability insurance will protect you from a lot of common issues new businesses might face, but there are other insurances that can better protect you if you’re concerned.
Build A Brand
Every strong business has a strong brand – make sure yours stands out from the crowd to impress. Think about:
- logo
- packaging of products
- website branding
- business cards
- style guidelines for any outsourced work
Market Your Business
Before you even make your first sale marketing is vital. Get the word out their about your exciting new venture – word of mouth referrals are great, but try advertising on social media sites, in local stores and newspapers, and anywhere else where you can place an ad for low costs. You might even consider promotional offers for your first X amount of customers.
How Do I Finance My New Business?
Before anybody jumps in to business they need to consider how they’re going to pay for it. Yes, every business has startup costs – even if those costs are low, they’re there. Let’s consider how plenty of new businesses get off the ground so you can pick an option that might work for you:
Bootstrapping
Bootstrapping, or pulling yourself up by your boot straps, is simply where you fund your startup costs yourself. You save what income you have or invest what saving you have already amassed, and then you use this to start out.
Crowdfunding
There are plenty of crowdfunding platforms like Kickstarter, Indiegogo, or GoFundMe, which can be used as a way of raising startup funds for a business from a large pool of backers who might only contribute a small amount. You can offer rewards and promotional offers to those who invest in your business early based on their donations and this is a great way to build momentum with loyal customers, whilst also receiving feedback on a much larger scale. Gaining funding this way can be a hard slog, but if you have the right business idea it can often inspire donators to give generously.
Business Loans
Traditional business loans might come at a cost – you’ll pay interest on your loan meaning you’ll ultimately spend more on getting your business up and running – but they’ve been the go-to for business owners for years for a reason. If you have collateral, a strong business plan, and a good credit score, banks are usually more than happy to lend you money to start a new business.
Business Credit Cards
Business credit cards are one of the more riskier funding options we’ve presented today, so should be treated with extreme caution, but it can be a great option for many who want the flexibility to repay their startup costs over time as they start earning money from their business.
Angel Investors
There’s no denying you’d have to be one very lucky new business owner to benefit from an angel investor, but it’s happened to others so why can’t it happen to you? A wealthy individual or group of people can invest in your business to get it off the ground (think the Apprentice or Dragon’s Den), but they will require shares in your business as a result. Find the right investors and the right deal, though, and this could be exactly what you need to start your business on the right foot.
Set Up Your Business Today
To be clear, there’s no such thing as an easy business to start. It takes time, money, and more hard work than you can imagine – no matter your business. However, there are certainly business ideas that take much less time and money to get things running, and perhaps you’ve found the perfect one for you in our list today.
If you have, we hope our further practical tips and funding suggestions have given you something to think about – and if you’re about to get started on a new business venture as a result, well, our team at Real Business wish you the best of luck!
