Small business ideas to start now, even on a budget

Published Thursday 12 February 2026

Table of contents

• Benefits of starting a small business
• Factors to consider when choosing a small business idea
• Small business ideas to start in 2025
• Side hustle ideas to start part-time
• FAQs on starting a small business

Key takeaways

• Choose a business idea that matches your existing skills and experience, as starting with what you already know gives you a competitive advantage and makes the work more enjoyable.
• Research market demand thoroughly before investing time and money by talking to potential customers, analyzing competitors, and testing your idea on a small scale to gauge genuine interest.
• Consider starting your business as a side hustle while maintaining other income, as this approach allows you to test ideas and build skills while keeping financial stability.
• Create a realistic budget that includes not just startup costs but also working capital for at least three to six months, since many businesses require time to generate consistent income.

Benefits of starting a small business

Small and medium-sized businesses represent about 90% of businesses and over half of global employment. Starting a small business gives you control over your working life and the freedom to build something on your own terms.

Here are the key benefits:

• Autonomy: You decide how the business runs and set your own hours.
• Satisfaction: You build something from the ground up.
• Flexibility: You shape your work around your life, not the other way around.

Business ownership typically requires more time than a traditional job. Income can be unpredictable in the early years; data shows that only about half of these businesses see their fifth anniversary. Choose an idea that matches your skills, personality, and financial situation.

Factors to consider when choosing a small business idea

Before choosing which business to start, consider these key factors that will influence your success.

Your skills and experience

Start with what you know. The best business idea for you often uses the skills you already have. Think about your professional experience, hobbies, and what you're naturally good at. A business built on your strengths gives you a head start and makes the work more enjoyable.

Startup budget and costs

How much money can you invest upfront? Some ideas, like freelance writing, require very little cash to start. Others, like opening a coffee cart, need more capital for equipment and inventory. Be realistic about your budget to choose an idea you can afford to launch and run, as access to finance is often a key constraint to SME growth.

Time commitment

Think about how much time you can dedicate to your new business. Are you looking for a full-time venture or a side hustle you can manage in your spare time? Understanding your availability helps you choose an idea that fits your lifestyle without causing burnout.

Personal interests and passions

Running a business takes dedication. Choosing an idea you're passionate about provides the motivation to push through challenges. When you love what you do, it feels less like work and more like building a dream.

Market demand

A great idea is only great if people are willing to pay for it. Look for problems you can solve or needs you can meet. Is there a group of customers who are looking for a product or service like yours? A business with built-in demand is more likely to succeed.

Small business ideas to start in 2025

Below are proven small business ideas across services, retail, creative work, and trades. Each can be started with varying levels of capital and experience.

Inventor

An inventor business turns your product ideas into reality, without needing a factory or massive investment. You can hire designers to create drawings, then use contract manufacturers or 3D printers to produce inventory.

Online retail and digital marketing make it easier than ever to reach niche audiences for even modest inventions, from improved household tools to specialty gadgets.

Franchisee

A franchise lets you open a business using an established brand's name, products, and systems. You pay the parent company (franchisor) an upfront fee and ongoing royalties in exchange for:

• Brand recognition: Access to established branding and customer trust
• Proven systems: Trade secrets, training, and operational support
• Business guidance: Advice on running the business and sometimes financing help

Costs and support levels vary widely. Franchise opportunities exist across industries, from restaurants and consulting to cleaning services and fitness.

Learn more about franchising.

Transcription

Transcription services convert audio recordings into written text. If you're a skilled typist with a sharp ear, you can offer:

• meeting and interview transcription for businesses
• court reporting and legal transcription
• closed captioning for television and video content

Virtual assistant

A virtual assistant (VA) provides remote administrative support to entrepreneurs, consultants, and small businesses. Common tasks include:

• managing schedules and setting up meetings
• reading and responding to emails
• taking notes and organising documents
• handling customer inquiries

This work can pay well and offers flexibility. Building strong client relationships often leads to repeat business and referrals.

Cleaning services

Cleaning services offer a low-cost entry point with steady demand from both residential and commercial customers. Startup costs are minimal. You mainly need supplies, transport, and a solid work ethic.

Success depends on reliability, high standards, and building a strong reputation. Growing interest in eco-friendly cleaning creates additional opportunities for differentiation.

Coffee cart or food truck

A coffee cart or food truck lets you enter hospitality with lower overheads than a fixed-location restaurant. You avoid rent costs and can test different locations to find your customer base.

Beyond serving food, mobile hospitality builds community connections in neighbourhoods and at events. It's competitive work, but rewarding for those who enjoy feeding people.

Catering

Catering lets talented cooks and bakers run a food business without the overhead of a restaurant. You work from a clean kitchen and typically receive advance orders, making inventory and workflow easier to manage.

Niche opportunities include:

• house dinner parties and private events
• office catering and corporate lunches
• pastry and baked goods delivery
• sandwich and meal prep services

Online selling

Online selling offers lower operating costs than physical retail, and often higher profit margins in the early years, according to Xero research. Setting up an online store is straightforward with modern ecommerce platforms.

You can sell your own products, stock established brands, or combine both approaches.

Learn how to start an online business.

Dropshipping

Dropshipping is online retail without holding inventory. You list products in your store, but the supplier warehouses, packs, and ships directly to customers when orders come in.

Dropshipping offers several benefits:

• No upfront inventory investment
• No need for storage space
• Logistics handled by suppliers

There are risks to consider:

• Supply chain issues affect your customers
• Customer support falls on you, not the supplier
• Lower margins than holding your own stock

This simplicity makes dropshipping a good starting point for beginners. Just choose a reliable dropshipping supplier.

Sell a digital product

Digital products are items delivered electronically, with no shipping or storage required. Examples include:

• ebooks and guides
• templates and design assets
• music, jingles, and sound effects
• videos and online courses
• stock images and graphics

Like dropshipping, this model keeps overhead low. Your main investment is creating quality products or licensing existing ones to resell.

Affiliate marketing

Affiliate marketing earns you commission by referring readers to products they purchase. When someone clicks your link and buys, you receive a percentage of the sale.

To succeed in affiliate marketing, you need:

• a sizeable audience (blog, social media, or email list)
• content that naturally connects to specific products
• patience: this is a long-term strategy

Popular niches include travel, parenting, gardening, cooking, crafts, and do-it-yourself projects. Some sources report average affiliate income approaching $60,000 (USD) per year for established marketers.

Personal trainer

Personal training helps clients achieve their fitness goals through customised exercise programmes and motivation. You'll need energy, communication skills, and knowledge of how the body works to train clients safely.

Niche opportunities include:

• weight loss and general fitness
• strength training and bodybuilding
• senior fitness and mobility
• sports-specific conditioning
• post-injury rehabilitation support

Certification programmes can help you build credibility and essential skills.

Life coach

A life coach (also called a wellbeing coach) helps clients find balance and fulfilment by guiding them through exercises and discussions that develop new perspectives.

Common client challenges include:

• Feeling stretched between family and career demands
• Being too task-focused to see the bigger picture
• Seeking clarity on goals and priorities

This work can change clients' lives, so proper training matters. Certification courses help you build the skills and credibility needed to support clients effectively.

Handyman/contractor

Handyman and contractor services are in steady demand regardless of location. If you're skilled with tools and enjoy fixing things, this business offers consistent work with low startup costs.

Services can range from minor repairs and maintenance to larger renovation projects, depending on your skills and licensing requirements.

Landscaping and lawn care service

Landscaping and lawn care maintains outdoor spaces for residential and commercial clients. Basic services require minimal training to start:

• mowing and edging
• pruning and weeding
• general garden maintenance

Growth opportunities come from adding specialised services:

• tree care and advice
• irrigation system installation
• soil assessment and fertilisation programmes

Target markets include private homes, rental properties, holiday homes, commercial buildings, and public spaces.

Construction

Construction trades offer steady demand from new builds and renovations alike. If you have skills in carpentry, joinery, plumbing, or electrical work, there's consistent work available.

Niche specialisations include:

• door and window installation
• staircase building
• deck and patio construction
• kitchen and bathroom fitting
• finish carpentry and trim work

Manufacturing, engineering and fabrication

Boutique manufacturing lets skilled engineers, builders, and welders create custom products or components for local businesses and consumers.

To start a boutique manufacturing business, you need:

• Technical skills in your trade
• Communication skills to understand customer requirements
• Basic design or drawing abilities
• Capital for equipment and materials

Focus on a few core products or services to manage costs. Local contracts for custom components can provide steady revenue.

Consulting

Consulting provides expert advice to households or businesses on a contract basis. It's a common venture: a 2018 survey found that 86% of small and medium practices provided some form of advisory/consulting service. You can monetise specialised knowledge or skills you already have, or develop new ones to meet local demand.

Residential consulting examples:

• interior design
• home organisation
• personal budgeting and finance

Business consulting examples:

• project management
• research and analysis
• editing and content strategy

Identify gaps in your community, then develop and market skills to fill them.

Business advisor or troubleshooter

A business advisor helps companies identify opportunities, overcome challenges, and unlock growth. This role suits experienced professionals who understand their industry deeply.

Key skills needed include:

• Industry expertise and credibility
• Analytical thinking
• Strong communication abilities

Your value comes from helping businesses avoid mistakes you've already learned from.

Webmaster

Webmaster services help small businesses set up and maintain their websites. Many business owners need a site but lack the technical skills to manage it themselves.

Services you can offer:

• website setup and hosting management
• security updates and backups
• content updates and changes
• basic search engine optimisation (SEO)

Add ecommerce setup and digital marketing to expand your service offering.

Digital marketer

Digital marketing services help small businesses reach target audiences online, often more affordably than traditional advertising. Many business owners need this expertise but don't have time to learn it themselves.

Services you can offer:

• social media advertising (Facebook, Instagram, LinkedIn)
• search engine marketing (Google Ads)
• content strategy and creation
• email marketing campaigns

Freelance copywriter

Freelance copywriting produces written content for businesses across marketing and communications. Common projects include:

• website copy and landing pages
• blog posts and articles
• email campaigns
• social media content
• advertising copy and taglines

Specialising in specific content types or industries increases your speed and earning potential.

Freelance designer

Freelance design creates visual materials for businesses, organisations, and agencies. Project types vary by specialty:

• newsletter and publication layouts
• certificates, awards, and event materials
• business cards, flyers, and brochures
• website design and graphics
• overflow work from design agencies

Success factors include:

• Build a strong online portfolio showcasing your best work
• Develop accurate time and cost estimating skills
• Specialise to increase efficiency and rates

Photographer

Photography services capture important moments for clients, from weddings and events to business headshots and product shots.

Common specialisations:

• wedding and event photography
• portrait and family sessions
• commercial and product photography
• real estate and architectural shots

You need professional equipment (though hobbyists may already own suitable gear), technical skill, and the temperament to perform under pressure at high-stakes events.

Clothing boutique

A clothing boutique curates fashion for specific customer tastes, either online, in a physical store, or both.

Business models include:

• reselling vintage and secondhand clothing
• importing hard-to-find labels and styles
• upcycling and recycling garments

The secondhand market continues to grow as consumers prioritise sustainability and value. This trend creates opportunities for boutiques focused on pre-owned fashion.

Clothing label

A clothing label lets you design and sell your own branded garments. You can manufacture items yourself or work with contractors who produce to your specifications.

Niche opportunities:

• sportswear and activewear
• maternity and baby clothing
• sustainable and fair-trade fashion
• plus-size or adaptive clothing

Start with one or two product lines to test market demand before expanding your range.

Beauty business

A beauty business sells grooming and cosmetic products to customers seeking to look and feel their best. While large brands dominate the mainstream market, niche opportunities remain.

Differentiation strategies:

• develop a unique beauty philosophy or approach
• focus on underserved customer segments
• create handmade products from scratch
• curate products from craft and artisan suppliers
• emphasise natural, organic, or sustainable ingredients

Pet care

Pet care services tap into a growing market. There are over 1 billion pets worldwide, with ownership rising among millennials.

Service opportunities:

• dog walking and exercise
• pet grooming and bathing
• in-home pet sitting during holidays
• pet transport services
• retail pet accessories and supplies

Different pets require different levels of care, so research demand in your area before choosing your focus.

Podcasting

Podcasting can generate income, but competition is significant. Thousands of quality shows already exist, many produced by media professionals.

Monetisation approaches:

• sponsorships and advertising
• selling courses or educational resources
• promoting your other products or services
• building an audience for consulting work

For most creators, podcasting works better as a marketing platform that supports other revenue streams rather than a standalone business.

Print-on-demand

Print-on-demand lets you sell custom merchandise without holding inventory. You create designs, list products in your store, and a third-party printer produces and ships items only when customers order.

Product examples:

• t-shirts and apparel
• mugs and drinkware
• cushions and home décor
• calendars and stationery
• phone cases and accessories

No upfront inventory investment. You only pay production costs after making a sale.

Printer

Printing services produce custom materials for individuals and businesses. With your own equipment, you can take orders for:

• custom apparel and merchandise
• wedding invitations and event stationery
• business cards and marketing materials
• posters, flyers, and signage

Offering design services alongside printing increases your value and allows you to charge higher rates.

Teaching online courses

Teaching online courses lets you package your expertise into digital products that students access on their own schedule. Platforms like Udemy, Skillshare, and Teachable make course creation and distribution straightforward.

Why demand is strong:

• learners value self-paced, flexible education
• remote learning habits formed during COVID-19 have persisted
• niche topics can attract dedicated audiences willing to pay

You need subject expertise and strong communication skills to explain concepts clearly.

Tutor

Tutoring provides one-on-one educational support to students who need extra help or want to excel.

Student segments you can serve:

• primary school children building foundational skills
• secondary students preparing for exams
• university students tackling advanced subjects
• adult learners developing new skills

Demand spans all ages and subjects, making this a flexible business with a broad customer base.

Teach languages

Language teaching helps students communicate in a new language, whether for travel, work, or immigration. You can teach your native language to non-native speakers without knowing other languages yourself.

To teach languages, you need:

• Patience and encouragement for struggling learners
• Training or certification (many programmes available)
• Clear communication skills

This work is rewarding. You help people connect, work, and thrive in new environments.

Childcare

Childcare services support families by caring for children while parents work or handle other responsibilities.

Business models:

• nanny or au pair services for individual families
• after-school care programmes
• holiday and school-break care
• babysitting services

Research health, safety, and licensing requirements in your area before caring for children outside their family home. Regulations vary by location and service type.

App developer

Freelance app development builds mobile and web applications for businesses and agencies. You'll need coding skills and understanding of user experience (UX) design.

Work sources:

• direct contracts with businesses needing custom apps
• overflow projects from development agencies
• freelance platforms and job boards

Freelance work can fund your own app ideas on the side, potentially creating a product-based business alongside your services.

Side hustle ideas to start part-time

Side hustles are businesses you run alongside other work, typically for supplementary income. Research suggests businesses that start as side hustles are more likely to succeed. You can test ideas and build skills while maintaining financial stability.

The ideas below work well around a day job, requiring flexible hours and minimal upfront commitment.

Join a focus group or take surveys

Focus groups and surveys pay you to share opinions on products, services, and media before they launch. Activities include:

• testing new food and beverage products
• previewing TV shows and advertisements
• answering questions about purchasing habits
• evaluating packaging and branding concepts

Sign up with multiple market research companies to increase opportunities. Providing thoughtful, constructive feedback improves your chances of repeat invitations.

Mystery shopping

Mystery shopping pays you to evaluate retail experiences undercover. You visit assigned stores, make purchases or inquiries, then report on service quality, store conditions, and staff behaviour.

What you'll assess:

• customer service quality
• store cleanliness and organisation
• staff knowledge and helpfulness
• checkout speed and accuracy

Demand varies significantly by location. Urban areas typically offer more opportunities than rural regions.

Rent your spare room

Renting your spare room generates income from unused space in your home through platforms like Airbnb or traditional boarding arrangements.

Requirements:

• home ownership (or landlord permission)
• a spare room suitable for guests
• comfort sharing your living space

Steady supplementary income plus social interaction with guests from different backgrounds.

Rent out your car

Renting out your car earns income from a vehicle that would otherwise sit idle. Platforms like Turo connect car owners with renters.

Before you start:

• update your insurance to cover guest drivers (standard policies typically don't)
• verify renters hold valid licences
• set clear terms for mileage, fuel, and vehicle condition
• document the car's condition before and after each rental

Gig work

Gig work offers flexible, on-demand tasks you can complete around your schedule. Common platforms include Uber, DoorDash, and TaskRabbit.

Types of gig work:

• rideshare driving
• food and grocery delivery
• errands and odd jobs
• moving and furniture assembly

Factor in fuel, vehicle wear, insurance, and your own time when considering costs. Not all earnings are profit. Track expenses to understand your true hourly rate.

Deliver groceries or food

Grocery and food delivery offers a straightforward way to earn extra income through platforms like DoorDash, Uber Eats, or Instacart.

Costs to factor in:

• fuel and vehicle wear
• insurance (check if your policy covers commercial use)
• phone data and accessories

This work suits supplementary income rather than full-time earnings. Scaling into a sustainable business is difficult due to platform dependency and tight margins.

Flipping items for profit

Flipping items for profit means buying products at low prices and reselling them for more. This practice is as old as retail, now supercharged by online marketplaces like eBay, Facebook Marketplace, and specialist resale platforms.

You can source inventory from charity shops, car boot sales, clearance sections, or wholesale suppliers. Success depends on knowing what sells, understanding market values, and spotting underpriced items others miss.

FAQs on starting a small business

Here are answers to common questions about choosing and starting a small business.

What's the easiest business to start?

Service-based businesses with minimal equipment needs are typically easiest to start. Virtual assistant work, tutoring, consulting, and freelance writing require little more than a computer and internet connection. These businesses let you start immediately with skills you likely already have.

How much money do I need to start a small business?

Startup costs vary widely by business type. Some businesses, like freelancing or consulting, can start with under £500. Others, like food trucks or retail shops, may require £10,000 to £50,000 or more. Create a detailed budget including equipment, inventory, licenses, insurance, and working capital for at least three to six months.

What business ideas work well as side hustles?

Side hustles that offer flexible hours and minimal startup costs work best alongside full-time work. Popular options include freelance writing or design, tutoring, pet sitting, selling digital products, affiliate marketing, and gig work like food delivery or rideshare driving. Choose something you can do evenings or weekends without burning out.

How do I know if there's demand for my business idea?

Research your target market before investing time and money. Talk to potential customers about their needs and pain points. Search online for competitors offering similar products or services. Use Google Trends to see if search interest is growing. Consider running a small test, like pre-selling products or offering services to friends at a discount, to gauge genuine interest.

Do I need a business plan to start a small business?

While not always required, a business plan helps clarify your strategy and increases your chances of success. It forces you to think through your target market, competition, pricing, costs, and growth plans. You'll definitely need one if you're seeking funding from banks or investors. Even a simple one-page plan is better than none.

What licenses or permits do I need?

Requirements vary by location, business type, and industry. Most businesses need a basic business license or registration. Some industries (food service, childcare, construction, healthcare) require specific permits, certifications, or insurance. Check with your local council, industry associations, and professional licensing bodies to understand what applies to your business.