Five small business ideas you can start in the UK this year

There is no idea that is guaranteed to make money. But some types of business are easier to start, need little money upfront and can grow steadily. Here are five to consider, with honest notes on what each involves.

1. Bookkeeping and admin support

Many small businesses need help with invoices, receipts, payroll and digital records but cannot justify a full-time employee.

• What you need: strong organisation, accounting software skills and, ideally, a bookkeeping qualification.
• Start-up costs: low; mainly software, a computer and insurance.
• Rules to check: businesses that provide bookkeeping or accountancy services need anti-money laundering (AML) supervision, usually through a professional body or HMRC.
• Why it works: clients tend to stay for years and pay monthly.

2. Specialist cleaning

General cleaning is competitive, but specialist services can stand out: end-of-tenancy cleaning, office cleaning, carpet and upholstery cleaning, or cleaning for holiday lets.

• What you need: reliability, good equipment and attention to detail.
• Start-up costs: low to medium; equipment, products, transport and public liability insurance.
• Rules to check: health and safety rules for chemicals, and employment rules if you hire staff.
• Why it works: demand is steady, and good service brings repeat work and referrals.

3. Home and garden trades

Skilled trades such as flooring, decorating, carpentry, landscaping and handyman services are always needed.

• What you need: trade skills, tools and a van or transport.
• Start-up costs: medium; tools, vehicle and insurance.
• Rules to check: some work, such as gas and electrical work, needs specific qualifications and registration. Building work may need building control approval.
• Why it works: customers often find trades by recommendation, and good reviews build a business quickly.

4. Online shop for a niche product

Selling a specialised product online, such as eco-friendly household goods, craft supplies or products for a specific hobby, can be started small and scaled.

• What you need: a reliable supplier or your own product, photography and basic digital marketing.
• Start-up costs: low to medium, depending on stock.
• Rules to check: consumer rights for online sales, including the right to cancel most orders within 14 days of delivery; product safety and labelling rules; data protection.
• Why it works: a clear niche makes marketing easier and cheaper. Read our guide to finding your perfect small business niche.

5. Consulting or training

If you have deep experience in a field such as marketing, IT, HR, health and safety or a language, you can sell that knowledge to businesses or individuals.

• What you need: expertise, a clear offer and a professional reputation.
• Start-up costs: very low.
• Rules to check: professional indemnity insurance; some regulated areas, such as financial advice or legal services, need authorisation.
• Why it works: high value per hour, and you can add workshops or online courses later.

Before you start: a simple checklist

1. Test demand with a few real customers.
2. Work out your price, costs and how many customers you need to break even.
3. Choose a structure: sole trader or limited company.
4. Register with HMRC: Self Assessment as a sole trader, or Corporation Tax within 3 months of starting to trade as a company.
5. Get the right insurance.
6. Open a business bank account and keep records from day one.

If your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, you must register for VAT.

How Form My Company can help

When you are ready to make it official, our Digital Package forms your company for £290, including the £100 Companies House fee, VAT and Corporation Tax registration. Most companies are registered within 24 hours. If you work from home, the Privacy Package at £1,000 keeps your home address off the public register for the first year.

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