Best Business to Start in the UK: Smart Ideas for Small Budgets

The UK economy has some bright spots despite uncertain times. The pet care sector reached £8.2 billion in 2023. The fitness market's value now tops £5 billion and continues to grow as people focus more on their health. These thriving sectors are a great way for entrepreneurs with limited funds to get started.

This piece explores business ideas that won't cost much to launch but can bring good returns. We'll explore opportunities in mobile food services and digital ventures that align with the market's needs in 2025. New entrepreneurs can find entry points in emerging fields such as telehealth. You'll learn how to build lasting business models even with tight budgets.

Key Takeaways

• Low-cost winners: carpet/cleaning services, mobile coffee carts, online reselling, virtual assistants, digital products/courses.
• Validate locally: check search demand + competitor density in your postcode before you spend £1.
• Money map: plan for £1k–£10k startup (often less without premises); keep a 20–30% buffer for surprise costs.
• Fast routes to revenue: service gigs (cleaning/VA/SM management) and pop-up/mobile food beat fixed shops on payback time.
• Digital leverage: pair a simple website with Google Business Profile + 2 social channels; build an email list from day one.
• Legal basics: choose sole trader vs. limited company, get insurance, register for taxes, and follow GDPR from the start.
• Health angle: telehealth micro-niches can work in the UK—ensure GMC/CQC/GDPR compliance and consider white-label platforms to cut build costs.

How to choose the right business for your budget

Picking the right business goes beyond just following market trends. Your success depends on how well your skills line up with real market needs and the financial realities of starting up. Let's break down this important process.

Assess your skills and interests

The best businesses often grow from what you already love doing - your passions, hobbies, or work experience. Starting something that uses your skills and industry knowledge will save you money. You can start faster and avoid mistakes that get pricey. Plus, you'll already know people in the field and have a good idea about what to offer and how much to charge.

Take an honest look at what you know about:

• Financial management and cash flow planning
• Marketing and sales skills
• Product development expertise
• People management abilities
• Business planning and strategy

Your experience level affects your journey a lot. Research shows three types of entrepreneurs: people who know their field but haven't owned a business, those who've run businesses but are trying something new, and complete newcomers. First-timers who don't know the industry usually need extra help with both basic and specific requirements.

Research market demand in your area

About one-fifth of all new businesses fail in their first year because they didn't do enough research. A full picture of the market helps you find real opportunities and lower your risks.

Know who might buy from you. Think about their age range, gender, income level, and buying habits. Check if these types of customers exist where you plan to operate. Tools like Google Keyword Planner and Google Trends help you learn about what people search for online.

Basic research provides important insights into your market's value, growth, and external factors that may affect it. Numbers-based research gives you vital stats about your market: how many customers there are, what sells best, and recent trends.

Understand startup costs and risks

"Any business will always cost more than you think," says Emily Robertson, co-founder of Roundwood Gin. "There will always be costs that get thrown up which you haven't predicted". You need a detailed financial plan with extra money set aside.

Startup costs vary widely depending on the type of business you start. Small businesses usually need £1,000 to £10,000 to start, but costs can go up if you need a building, inventory, or employees. You'll pay for:

Registration fees (£50 online for a limited company), professional services (insurance, legal, accounting), premises (from £20/sqm in Bristol to £90/sqm in London), marketing (usually 9-25% of turnover for startups), staffing, equipment, and materials.

Check if your business can work by comparing monthly costs against likely income. If you spend more than you make, you'll need to cut costs or find ways to sell more. Understanding these money matters before you start will boost your chances of success.

Top small business ideas in the UK for 2025

UK entrepreneurs looking to start a business in 2025 have several budget-friendly options. These ventures need little money up front but can bring good returns.

Mobile coffee or food cart

Coffee businesses are booming in the UK. The numbers show coffee is still the country's favorite drink in 2024. You can start with just £7,500 for a basic Piaggio conversion. If you want a complete franchise package, prices can reach £30,000.

Coffee carts make great business sense with profit margins reaching 95% per cup. Unlike many seasonal businesses, coffee sales stay strong all year. British people drink about 3 cups of caffeine daily. You can set up shop at festivals, markets, business parks, or busy commuter spots. This gives you many ways to make money without the high costs of running a café.

Cleaning or carpet cleaning services

The cleaning industry can make you good money without spending much to start. The British Cleaning Council reports that this sector has hired over 700,000 people and adds more than £24 billion to the economy. Self-employed cleaners can earn well - while company cleaners make about £10.31 per hour (£19,000 yearly), independent cleaners can take home around £35,000 a year.

You don't need much money to start because you:

• Work at your clients' places (no shop needed)
• Just need simple cleaning supplies
• Must have a way to travel
• Need the right insurance

You also get to pick your working hours and turn down jobs that don't suit you.

Beauty salon or mobile hairdresser

Beauty services stay in demand even when times are tough. Common services include manicures, pedicures, eyebrow microblading, hair treatments, and tanning. Most people spend £10,000 to £15,000 to start, though some shops might cost up to £25,000 depending on where they are, how big they are, and what equipment they need.

Money experts suggest keeping extra funds worth 150% of your planned budget. Putting your profits back into the business during the first few years is vital for long-term success.

Online reselling or vintage store

Reselling has become a game-changer in the UK business world with very low startup costs. About 67% of new UK e-commerce sellers started selling used items just last year. The average UK home has 31 items they don't want, worth up to £800 on sites like eBay, Vinted, or Depop.

Hot reselling categories for 2025 include branded fashion, returns and clearance pallets, vintage clothing, mystery boxes, toys, beauty products, and electronics. Each platform has its strengths - eBay works best for many listings, TikTok Shop for live selling, Depop for vintage items, Vinted for no-fee fashion, and Amazon for selling more new products.

Yoga or fitness instruction

Yoga's popularity has grown a lot recently, giving business owners many ways to make money. You could open a yoga studio, use existing spaces, create a home studio, teach outside, run retreats, offer online classes, or work at events.

Starting this business needs just the basics - yoga mats, blocks, straps, wheels, foam rollers, meditation pillows, and some business tools. Of course, yoga's mental and physical health benefits keep people coming back. You can grow your business through group classes, private lessons, online courses, or YouTube channels.

Digital-first businesses with low overhead

Digital technology has created amazing opportunities for entrepreneurs who want to start businesses with minimal investment. Online ventures need almost no physical space but can generate substantial income if you have the right skills and commitment.

Affiliate marketing and blogging

Affiliate marketing lets you earn commission by promoting other companies' products through your platform. This business model is available to anyone—you can earn money without creating your own product or service. You earn money each time customers use your unique links to make purchases, and commission rates range from 5% to 50%.

This revenue stream has grown by 10% each year, which attracts many UK entrepreneurs. Commission Junction, Amazon Associates, and Shopify's affiliate program are the most popular UK affiliate platforms. You need a platform like a blog or social media account to combine these links smoothly with quality content.

Selling digital products or courses

Digital products are among the most adaptable business models today. Global e commerce will reach $8 trillion by 2027, and digital products will drive much of that growth.

Online courses are a great way to get strong returns if you have expert knowledge in a field. The online education market will reach $203.81 billion in 2025, and the average revenue per user stands at $219. The digital format also removes common business challenges—you won't need to manage inventory, deal with shipping delays, or worry about packaging waste.

Social media management

Social media marketing helps startup businesses thrive in today's social-first environment. Social media managers help companies build their brand story and create messages that strike a chord with potential customers.

Services typically fall into two categories:

• Traditional social media management: Creating and scheduling organic posts that inspire, educate, and entertain audiences
• Paid social media advertising: Helping businesses reach new, hyper-targeted audiences through platform advertising

UK-based social media management services start at £100 per month. This business is affordable to start and has impressive growth potential.

Virtual assistant services

The UK virtual assistant market was valued at $773 million in 2024 and will reach $4,336 million by 2030—showing a remarkable 33.9% CAGR. Businesses need affordable, flexible support solutions, which explains this extraordinary growth.

Virtual assistants provide administrative services, scheduling, email management, and other support functions remotely. Clients love these services—84% say virtual assistants have boosted their productivity.

A UK-based virtual assistant company reported 325% growth since 2020, underscoring the industry's resilience amid economic uncertainty. Modern virtual assistants do more than traditional administrative tasks—they often provide specialized services like bookkeeping, digital marketing, and social media management.

Starting a telehealth business from home

The telehealth business presents a great way to enter the healthcare sector. The UK healthcare industry welcomes entrepreneurs, and telehealth stands out as one of the most available entry points. Low overhead costs and high patient demand make it an ideal business venture for those with limited capital.

How to start your own telehealth business

Start by evaluating what you want to accomplish. Ask yourself if you're expanding an existing healthcare service or starting from scratch. Learn about different approaches other providers have taken. A care services plan should outline how patients and doctors will connect and what security measures you'll implement.

The UK-specific regulatory landscape requires attention before launch. Telehealth providers must maintain GMC registration and hold indemnity insurance for remote consultations. GDPR compliance and Care Quality Commission standards are mandatory. Brexit has created new requirements - serving patients in EU countries now requires checking individual national regulations.

Telehealth business plan essentials

A detailed business plan works as your "operational GPS, investor pitch, and long-term growth engine all in one". Your plan should have:

• Market assessment and target segmentation
• Infrastructure evaluation and platform selection
• Daily operations and human resources planning
• Compliance strategy and patient care measures
• Financial projections with break-even analysis

Service scope determines the cost structure. Platform licensing, video conferencing capabilities (from $10,000), networking equipment (from $100,000), and security and maintenance (approximately $20,000-$40,000 annually) form the basic expenses.

Tools and platforms for remote care

Quality telehealth services depend on choosing the right technology. Your toolkit should include secure video platforms for consultations, EHR systems linked to patient records, encrypted messaging services, and GDPR-compliant data protection systems.

The platform needs end-to-end encrypted HD video consultations with screen-sharing capabilities for patient education or visual assessments. Customizable templates, auto-generated notes, and electronic prescribing help save time during consultations.

Benefits of telehealth for UK patients

Telehealth has revolutionized healthcare delivery. Patients in rural areas and those with limited mobility now have better access to care. Remote consultations cut down travel time and waiting lists, making healthcare available to more people.

Healthcare professionals can manage their workloads better through telehealth. Simple cases get handled remotely while complex cases move to face-to-face appointments. This system benefits providers and patients alike, creating an environmentally responsible healthcare model.

Bask Health's telehealth approach addresses UK healthcare needs specifically. We focus on availability and patient-centered care. Telehealth isn't just a business opportunity - it's a chance to make a meaningful impact on the UK's healthcare map.

Why Bask Health is a model for modern startups

Bask Health shows entrepreneurs how to start the best business in the UK with minimal capital. Our approach shows how new ideas can change traditional industries.

Bask Health's approach to digital care

Scalability and low-cost entry

Our no-code platform makes it simple to start a telehealth business by streamlining development. This lets you focus on patient care rather than on building systems. Entrepreneurs can design perfect systems for their business quickly - from doctor consultations to payment processing. You can pick and choose features that match your specific needs.

How it supports UK healthcare needs

Healthcare access remains limited in 80% of areas. Our model effectively fills these service gaps. Our platform helps the NHS innovation agenda by providing:

• Shorter waiting times through simplified processes
• Better access for underserved communities
• Live monitoring features for improved patient outcomes

Bask Health proves that telehealth businesses can succeed in the UK market while solving healthcare challenges with flexible, affordable solutions.

Conclusion

You don’t need a big budget to start a business in the UK. The ideas in this guide—from carpet and cleaning services to mobile coffee carts, online reselling, virtual assistance, and digital products—show that low-cost models can still deliver solid returns when they’re aligned with real demand.

Your best business will sit at the intersection of three things: your skills, the money you can realistically invest, and a clear market gap. Whether you choose a hands-on local service or a fully online venture, doing your homework on costs, pricing, and customer needs will matter more than chasing trends.

Telehealth stands out as one of the most promising opportunities. The UK’s shift toward digital care means entrepreneurs can build lean, impactful businesses that improve access to healthcare. At Bask Health, our platform is designed to help founders create custom telehealth experiences without deep technical resources, lowering both risk and upfront investment.

In the end, the “best” business to start is the one you can launch, learn from, and sustain. Start small, solve a real problem, reinvest your early profits, and adapt as you go. With smart planning and a realistic view of your budget, you can turn a modest idea into a lasting UK business.

References

1. MarkSpark Solutions. (n.d.). UK virtual assistant services market report. https://marksparksolutions.com/reports/uk-virtual-assistant-services-market (Retrieved November 14, 2025).
2. Start Up Loans. (2025). 25 businesses to start in 2025. https://www.startuploans.co.uk/business-guidance/business-inspiration/25-businesses-to-start-in-2025
3. Informi. (n.d.). How to conduct research for a new business. https://informi.co.uk/starting-business/how-to-conduct-research-for-a-new-business (Retrieved November 14, 2025).