Are you looking to start a small business in the UK? You’re not alone. Over the past few years, while many companies have suffered as a result of the COVID-19 pandemic, you could become one of the many people who have bucked the trend by starting your own business from home. Setting your own hours, being your own boss, and chasing your own dreams are just a handful of benefits of opening your own business.

But every company starts with one question: what type of business will it be? Perhaps you don’t have any idea what sort of startup you’re interested in running—or perhaps you have so many ideas that it’s difficult to choose. Whatever the case, this article on profitable small business ideas for UK residents will help. Read on for some tips on how to choose the best startup concept and for a list of small business ideas.

How to Choose a Small Business Idea

When looking to create your own startup, you want to make sure that you choose an idea that makes sense from an economic standpoint. This isn’t the only consideration, but it’s an important one, especially if you’re hoping to make a living off your business.

The business model you choose could be anything from selling products to providing a service. It could be in any industry—e-commerce, accounting, or childcare. The world is your oyster! Just remember that there must be some sort of market demand for your business idea for it to be met with success. All the most successful small business ideas take advantage of this.

Popular Small Business Ideas In 2023

It can be difficult to come up with effective business ideas without any help. With so many options out there and with such a saturated market, coming up with your own concept can be daunting. So, in this section, we’ve brought together ten of the best small business ideas for the UK.

1. Online Shops

During the height of the coronavirus pandemic, with non-essential retailers locked down, online shopping saw a massive rise in popularity. From toiletries and food to clothes and games, everyone was doing the bulk of their shopping online.

Now, the world is slowly mending from COVID-19, but online shops remain highly popular. People value the convenience afforded them by shopping online, as well as the time they can save. That’s why opening an online shop is one of the most successful small business ideas in the UK.

Make sure to do your research before opening an e-commerce store and ensure there is a need for what you are selling before you invest a ton of money into it. If you make sure to weigh your options carefully before starting your business, there’s no reason why you couldn’t quickly turn it into a profitable venture.

2. Selling Homemade Crafts

Many people choose to sell homemade arts and crafts to make a little money. This could be anything from knitted clothes and woven decorations to hand-thrown pottery and scented candles. One of the benefits of this line of work is that it allows you to indulge in your creativity without losing out on money.

Shipping and inventory management are two of the biggest challenges you are likely to face when running a business of this kind. One of the best ways to find out whether or not you’re cut out for those particular challenges is to simply start small and see how you get on before expanding your business.

3. Running a Blog

Starting up a blog can be an effective way to enter the world of entrepreneurship. This is a business idea you can get started on with no money, making it a particularly attractive option for writers who are low on funds and looking to bring in some extra cash.

Our top piece of advice here is to know your audience. If you understand who is reading your blog posts, then you’ll be better placed to create content that is relevant to your readers. Of course, the quality of your writing is important as well; you’ll want to make sure that it holds up against that of your competitors.

Once you’ve brought in a large enough audience, you can consider opening an online store or monetizing your blog. This is a great way of making money while also giving you the chance to explore and write about something that matters to you.

4. Online Teaching

Of all the ideas for small businesses in the UK on this list, online teaching is perhaps one of the most challenging—but it can be extremely rewarding, too. Right now, it’s an especially popular career path, with the tutoring industry has grown about 20% in the past year.

Online teaching or tutoring demands a lot of skills from the business owner, with time management being one of the most important aspects. You need to be organized, planning lessons in advance, putting together learning materials, and making sure you also leave time for marking work. What’s more, you may be met with difficult students or pupils who have a difficult time following instructions.

If you think you’re up to the task, however, online teaching can be very enjoyable and enriching. Furthermore, you will be able to dictate your own hours, for the most part, and will be able to be your own boss.

5. Dog Walking

Since the beginning of the COVID-19 pandemic, over three million households in the UK have bought pets. For the animal lovers out there, that presents a fine opportunity to make some money; that’s why dog walking has earned itself a place on this list of small startup business ideas in the UK.

You can start a dog-walking business with very little monetary investment. Some people may decide to take a course in emergency pet first aid, but other than that, you don’t have to spend very much at all to get a dog walking company off the ground.

This job isn’t for everyone. If you’re not a fan of walking, the outdoors, or animals, then this obviously isn’t the best startup option for you.

6. Running a Market Stall

In 2021, market trading was one of the fastest-growing startup business models, seeing an increase of more than 110% from the previous year. This isn’t entirely surprising. As we all came out of lockdown, people were eager to leave their homes and go out for some shopping, though some still exercised caution about being in indoor spaces. Markets provided such individuals with the best of both worlds.

What’s more, markets are popular throughout the UK (even despite the frequent bad weather). Whether seasonal, open on just the weekends or open seven days a week year-round, markets have a charm that draws people to them. As a result, this is perhaps one of the most compelling entries on this list of small business ideas in the UK.

7. Selling Subscription Boxes

Subscription boxes also saw a leap in popularity during the pandemic. A subscription box company is perfect for business owners who are interested in curating products but not creating them themselves.

There are an endless number of themes you can follow to attract a particular niche. Snacks, video game collectibles, luxury bath products—no matter your interests, you’re bound to be able to find a subscription box idea that appeals to you. And remember, the stronger your theme, the easier your business will be to brand.

Because they provide business owners with a recurring revenue stream, subscription boxes are highly popular among startups. If this is something that appeals to you, it might be worth looking into.

8. Website Consultancy

In our increasingly digital world, owning an effective website is a must for any business out there. If you’re a dab hand at website development, perhaps you could offer your expertise through a web consultancy service.

With so many companies looking to build their own websites, the need is greater than ever for expert web designers. If you have the skills necessary to build and maintain a website, including knowledge of visual design, copywriting, and SEO, then you’re bound to find a target market out there just begging for your services.

9. Cleaning

This option is by no means the most thrilling on this list, but cleaning startups are a good option for people who don’t mind getting their hands dirty!

These days, people are busier than ever. After working a 9-5 only to come home to chase their kids around, many people just don’t have the time or energy to give their living space the care and attention it deserves in cleaning. That’s where domestic cleaning services come in.

Another benefit of running a cleaning business is that it has very low overhead costs and can be set up very quickly.

10. Accounting and Bookkeeping

Very few people enjoy having to deal with finances. Tedious at best and confusing at worst, figuring out expenses and taxes can be an absolute nightmare for some. If you have a head for numbers, then this might be the business niche for you.

When working as an accountant or bookkeeper, you have the freedom to choose your own hours and can work from anywhere you like. Business relationships can be maintained via email or instant messenger, and all you really need to get your work done is a reliable computer and a good internet connection.

Final Thoughts

We hope that the above list of new small business ideas for the UK has helped you to figure out your next business enterprise. Running a startup is no doubt a challenge, but it can also be very rewarding once you manage to get it off the ground.

There are loads more considerations to take into account when building a business—but this is a good place to start. Once you’ve decided on your business idea, your next steps might include building an online presence. If you’re working online, you may want to look into the prospect ofsetting up a virtual business address, too, to lend your company more credibility.

Whatever avenue you choose to pursue, know that we here at Hoxton Mix are eager to help. So, if you’re looking for advice on how to get your startup up and running, or if you’re looking to set up a virtual company address in the thriving metropolis of London, reach out to us today!