Small businesses currently dominate the UK market. As of the start of 2022, there were 5.5 million with under 49 employees and SMEs account for a sizable 99.9% of the business population. More people choose to utilise their skills and knowledge and go it alone, and it’s easy to see why. Being your own boss brings many benefits, from choosing your working hours to providing autonomy over critical decisions.
Where the appeal of working for yourself is easy to see, figuring out what business you should start can be tricky. In this guide, we look at the key considerations you need to consider and provide some ideas for businesses you can start quickly.
6 Considerations before Choosing a Business Idea
Picking a business idea should take careful consideration, and it’s not something you should rush into. Before getting started with the brainstorming phase, consider the following:
1. Will You Need Any Training?
To make your life easier, choose something you already have experience in or at least are passionate about. Consider whether you already have the knowledge to get started or if you’ll need to undertake further qualifications. Ideas that require less training will be easier and less costly to launch.
2. How Much Will It Cost to Set Up?
Next, you need to consider how much you’re prepared to pay to set up your business. Make a list of what you’ll need to get started, perhaps a website? Desk and workstation? These costs can add up quite quickly.
3. Do You Need Inventory or Supplies?
If you’re going to be selling physical goods, you’ll need some form of supply or inventory before launch. Depending on what you intend to make or sell, these costs can be quite considerable. At first, making or purchasing small batches may be a good idea until you start to see a profit.
4. Where Will You Be Working?
Would you prefer to work from home, or do you need to think about renting an office or workshop? If your work will take you out of home, consider transport costs and how far you’re willing to travel.
5. Is There Demand for Your Business?
Demand is what will influence whether your business soars or plummets. This is perhaps the most important thing to consider when thinking about what business you can start. Spend time researching your idea and the area where you intend to market it.
6. Do You Have Something New to Offer?
Have you got a completely new product or service that no one else has yet? Or maybe you or someone you know had a bad experience with a company and know that you can do better? You need to make sure you’re doing something different to your competition.
What Business Should I Start?
The key to a successful business is working out what you’re good at and finding your niche. It’s helpful at this stage to list your qualifications and key skills and consider whether they lend themselves particularly well to certain careers.
If you’re struggling for inspiration, we’ve rounded up some ideas for small businesses that you can get started with little or no set-up fees.
Practical Small Business Ideas
1. Handyman
Can you fix just about anything you put your hands on? Then, a handyman business may work for you. Start-up costs are small, you’ll need to create a website, do some market research to determine how much to charge, and buy tools if needed.
The good news is you won’t need any special education for this job, but it is a good idea only to offer services that you’re skilled enough to perform. Also, don’t forget to take out insurance so that you’re covered in case something goes wrong.
2. Landscaper/Gardener
If you have a bit of a green thumb and enjoy gardening, landscaping can be a very lucrative business. Around 87% of British homes have a garden, and lifestyles are often too busy to mow lawns and trim trees regularly.
Consider starting small by providing straightforward services such as lawn mowing and weeding, and you can then build up your offering to more technical tasks. You could even undertake a landscaping course later on to gain more experience.
To get started, you’ll just need tools and suitable clothing. You’ll also need a car with enough space to take tools from job to job if you’re using your own.
3. Cleaner
Cleaning businesses are booming, and according to research conducted by The British Cleaning Council (BCC), one in ten homes now employ a domestic cleaner. It’s very easy to get started with this type of business, and you can do it alone as a sole trader while you build up a client base. You could offer specialist services, such as deep spring cleans and end-of-tenancy cleaning, to set your business apart.
Before getting started, carry out some market research to figure out the going rate for your area. Then, once you’re ready to get your business out there, print flyers, post them through the doors of your area and post your services to local Facebook groups. You’ll find that word of mouth is a very powerful marketing tool when you’re established.
Start-up costs are very low. You’ll need cleaning materials and potentially transport if you intend to work beyond your immediate area.
4. Car Detailer
If you’d prefer to take your cleaning services on the road, why not consider opening a car wash or detailing service? You could choose to carry out mobile services or rent a location to offer cleaning. We’d recommend researching before renting somewhere to determine whether there’s more demand for mobile car detailing in your area. Who knows? Maybe you’ll be the first.
You don’t need professional qualifications to open a car detailing business, and start-up costs are minimal as you’ll just need cleaning supplies.
5. Pet and House Sitter
Over half of UK households own a pet, and most will need to hire someone to care for them when they go away. Pet sitting services are fast becoming a more popular alternative to catteries and kennels as they’re far less stressful for pets and owners alike.
With this type of business, you’ll likely go to the client’s home and stay for an agreed-upon period. Tasks will include general pet care, and there may be added home chores on top, such as watering plants and putting bins out.
You don’t need qualifications to get started, but it’s a good idea to take a pet first aid course as a minimum, and, as you’ll be in private residences, a DBS check will often be requested, too. Additionally, make sure that you take out appropriate insurance.
Home-Based Business Ideas
1. Online Tutor
Ever since the pandemic, there’s been an increase in demand for quality online education. It’s a highly convenient way to teach and learn, as everything is done online, so there’s no overheads for travel or classroom hire. Also, you can expand your client base and teach worldwide.
Where you need qualified teacher status (QTS) to teach at primary and secondary level, you don’t need this for further education or early years. However, you should only teach subjects you have a thorough understanding of and in some cases, a degree in the field may make you more hireable.
If you’re not adept at a specific topic, consider teaching English as a foreign language to students overseas. You will need a TEFL qualification, but training courses are very affordable.
2. Consultant
If you’re a marketing mogul, social media whizz or SEO specialist, becoming a consultant for other businesses could be a great option. With this career, it’s helpful to have contacts in the industry before getting started and make sure you spend some time developing a thorough marketing plan to attract more clients.
Your time is your biggest investment with this career model, but you’ll also need a website and subscriptions to any tools you need to carry out your work.
3. Dropshipper
Dropshipping is one of the most straightforward businesses to get started, and with the average dropshipper making £2,000 a month, it can be a good source of income when done right. It’s relatively low-cost and hands-off as it involves third-party suppliers shipping products to customers on your behalf.
You won’t need to store or handle products; you only need to find a niche and curate products from quality suppliers in your online shop. You’ll have to handle your own marketing and customer service, so it’s vital you work with trustworthy suppliers.
Dropshipping is also a great way to test the waters with certain products before spending time and money launching an original offering.
4. Freelancer
If you have experience in creative or tech industries, why not turn your skills into a small business and go freelance? As of 2022, there are 1.9 million freelancers in the UK alone, making up almost half of the solo self-employed population.
There are plenty of careers you can take freelance, including writing-based professions like journalism, copywriting, and even authoring. A good grasp of English and impeccable spelling and grammar skills are essential, and in some cases, it may make you more of an asset if you possess an English degree.
If you’re more technologically inclined, web development could be a good option. You’ll need to be well-versed in coding languages such as HTML, CSS and Javascript, but no formal qualifications are needed. You can even take boot camp courses to learn the fundamentals.
5. Crafter
Maybe you’re a baker or, perhaps, a candlestick maker? Whatever your talent or craft, you can market it and create a unique small business idea. For example, the UK candle business is currently valued at a sizeable £1.9bn, so there’s certainly demand for quality, artisanal goods.
Start with creating small batches or even making items to order. This way, it can be done at home and requires little start-up cost while you gauge demand. Try selling products on Etsy initially, and once you build a reputation, you can build your website and sell products using e-commerce platforms like Shopify.
Things to consider when selling homemade goods are shipping, inventory management, and the time it takes to make things. Additionally, if you intend to create products to put on the skin, you’ll need to bear regulations in mind, too.
Final Tips For Starting Your New Business
- Find your niche: Good marketing can make or break a business, so you need to ensure there’s a demand and, if competition exists, you can do it better.
- Price carefully: Pricing isn’t as simple as making your products cheaper than the competition. If prices are too low, you’ll risk customers thinking your products are inferior, whereas if they’re too high, they’ll likely shop elsewhere.
- Don’t forget shipping fees: If you’re selling physical products, you’ll need to consider shipping costs on both your and the customer’s end. You may want to include these costs in the item’s price and offer free shipping as a USP or create promotions to encourage customers to spend over a certain amount to qualify for free shipping.
- Always be learning: Starting a new business is a learning curve, so be prepared to learn and adapt. Products may need to be swapped, ingredients might have to be changed, websites may have to be redesigned, and prices might need to be reconsidered. Take the time to review your performance and think about how you can do better.
Ready to get started? Register your small business with Mint Formations today and get off to a flying start. We offer comprehensive company formation packages designed to take the stress out of beginning your new journey.