Small business ideas for 2026: 35 to start and grow

Published Friday 20 February 2026

Table of contents

• Benefits of starting a small business
• Qualities of a good small business idea
• How to choose the right business idea for you
• List of small business ideas
• List of side hustle ideas
• How to come up with your own small business idea
• Manage your small business with Xero
• FAQs on small business ideas

Key takeaways

• Evaluate business ideas using six key criteria: market demand, competitive advantage, scalability, low barriers to entry, profit potential within 3-6 months, and long-term sustainability to increase your chances of success.
• Match business opportunities to your personal situation by assessing your existing skills, available budget, time commitment, interests, and risk tolerance rather than chasing trendy ideas that don't suit you.
• Start with a side hustle to test your business idea while maintaining employment income, as this approach reduces financial risk and allows you to pivot quickly if needed.
• Focus on service-based businesses if you have limited startup capital, as options like virtual assistance, consulting, cleaning services, and tutoring require minimal upfront investment while using skills you already possess.

Benefits of starting a small business

Starting a small business gives you control over your working life and the freedom to build something on your own terms, with recent surveys showing the primary motivation for nearly half of new entrepreneurs is to be their own boss.

Key benefits include:

• Autonomy: You decide how the business runs
• Flexibility: Set your own hours and work schedule
• Ownership: Build equity in something you create

Keep in mind that business ownership typically involves more work than a day job. Income can be unpredictable in the early years, so choose an idea that fits your skills, personality, and financial situation.

Qualities of a good small business idea

A good small business idea meets real market demand and fits your personal situation. Before exploring specific ideas, use these criteria to evaluate any opportunity.

• Meets market demand: People are actively looking for and willing to pay for this product or service
• Has a competitive advantage: You can offer something different or better than existing options
• Is scalable: The business can grow without requiring proportionally more of your time
• Has a low barrier to entry: You can start without massive upfront investment or specialised credentials
• Demonstrates profit potential: Revenue can exceed costs within a reasonable timeframe, with research on side hustles showing that for many, profitability is achieved within 3–6 months.
• Is sustainable long-term: The idea isn't dependent on a short-term trend or single customer. Businesses providing essential services or affordable indulgences tend to be more resilient during economic downturns. Learn more about recession-proofing your business.

Ideas that tick most of these boxes give you a stronger foundation for success.

How to choose the right business idea for you

Choosing the right business idea means matching opportunities to your unique situation. Consider these factors before committing.

• Assess your skills and experience: What can you do well? Ideas that use existing expertise have a faster path to revenue
• Consider your available budget: Some ideas need under £1,000 to start, while others require £10,000 or more
• Evaluate your time availability: Can you commit full-time, or do you need something that works around a day job?
• Align with your interests: You'll spend significant time on this, so pick something you find engaging
• Understand your risk tolerance: Some ideas offer steady, modest returns while others have higher upside but more uncertainty

There's no single "best" business idea. The right choice depends on where you are now and where you want to go.

List of small business ideas

Below are 35 small business ideas across different industries, skill levels, and budget requirements. Each includes a brief overview of what's involved and who it suits best.

Inventor

An inventor business turns your product ideas into sellable goods. You don't need to create the next big tech breakthrough; even simple improvements to everyday items can find a market.

Hire designers to create drawings, then use contract manufacturers or 3D printers to produce inventory. Online retail and digital marketing make it easier to reach niche customer groups who want exactly what you've made.

Franchisee

A franchise lets you operate a business using an established brand's name, products, and systems. You pay the parent company (franchisor) for the right to open a location, and they provide branding, training, and sometimes financing.

Franchise costs and support levels vary widely. Options range from restaurants and consulting firms to cleaning services and window washing. Learn more about franchising.

Transcription

Transcription involves converting audio recordings into written text. This suits skilled typists with strong listening abilities.

Common transcription work includes:

• Meeting notes and business recordings
• Legal transcription for courts
• Closed captioning for television and film

Virtual assistant

A virtual assistant provides remote administrative support to entrepreneurs, consultants, and small business owners. Demand continues to grow as more businesses operate online. 80% of Gen Z business owners started their ventures online or with a mobile component.

Typical tasks include:

• Managing schedules and calendars
• Setting up meetings
• Reading and responding to emails
• Taking notes and organising documents

The work can be challenging, but it pays well and offers flexibility. Building strong client relationships often leads to ongoing work.

Cleaning services

A cleaning services business provides residential or commercial cleaning for homes, offices, or specialised facilities. Startup costs are relatively low, making this accessible for new entrepreneurs.

Demand is growing, particularly for environmentally sustainable providers. Success depends on strong planning, consistent quality, and building a solid reputation.

Coffee cart or food truck

A coffee cart or food truck lets you enter the hospitality industry with lower overhead than a fixed restaurant. Starting mobile keeps costs down while you build a customer base.

The work is competitive but rewarding. You're feeding people and adding to the community feel of a neighbourhood.

Catering

Catering involves preparing food for events, parties, or regular delivery orders. You don't need a full restaurant; a clean kitchen is enough to start.

Working from advance orders lets you plan inventory and workflow efficiently. You can also specialise in niches such as:

• House dinner parties
• Office events and meetings
• Pastry and breakfast catering
• Order-in sandwiches and lunches

Online selling

Online selling means running an eCommerce store that sells products directly to customers. Setup is straightforward, and online stores typically cost less to run than physical shops, with better margins in the early years.

You can sell your own products or stock established brands. Learn how to start an online business.

Dropshipping

is online retail where you sell products without holding inventory. When orders come in, your supplier ships directly to the customer.

Key benefits include:

• No inventory costs: Products stay in the supplier's warehouse
• No storage needed: You don't need a stockroom
• Simplified logistics: The supplier handles packing and shipping

This simplicity makes dropshipping a good option for beginners. However, you may face challenges if suppliers have stock issues or customers need product support. Choose a good dropshipping supplier to minimise these risks.

Sell a digital product

Selling digital products means creating and delivering downloadable items like ebooks, templates, music, or videos. There's no inventory to store and no shipping to manage. Customers receive products instantly via email or download.

Examples of digital products include:

• Ebooks and guides
• Design templates
• Stock images and videos
• Music and audio files
• Online courses and tutorials

The main requirement is creating products people want to buy, or licensing existing digital products to resell.

Affiliate marketing

Affiliate marketing earns you commission by referring your audience to products or services. When readers click your links and make purchases, you receive a percentage of the sale.

This works best when you have a sizable audience and content that naturally connects to specific products. Strong niches include:

• Travel
• Woodworking and DIY
• Parenting
• Gardening
• Cooking and recipes

Affiliate marketing takes time to build, but for established marketers in the US, the average salary is $97,137 per year.

Personal trainer

Personal training helps clients achieve their fitness goals through customised exercise programs and motivation. This suits people with energy, discipline, and strong communication skills.

Understanding how the body works is essential to avoid injuring clients. Certification or training is highly recommended. Clients range from young athletes to older adults, with goals spanning weight loss, strength building, and general wellness. There's a niche for most fitness interests.

Life coach

Life coaching helps clients find balance, clarity, and fulfilment in their personal and professional lives. Coaches guide people through exercises and discussions to develop new perspectives and make meaningful changes.

Common client challenges include work-life balance, career direction, and feeling disconnected from personal goals. This work can lead to significant life changes for clients, so it requires genuine commitment and skill. Certification courses can help you build the necessary expertise.

Handyman/contractor

Handyman or contractor work involves repairs, maintenance, and small construction projects for residential or commercial clients. Demand for these skills is consistent regardless of location.

This suits people who are good with tools and enjoy hands-on problem-solving.

Landscaping and lawn care service

Landscaping and lawn care involves maintaining outdoor spaces through mowing, pruning, weeding, and garden upkeep. Basic services require minimal training to start, making this accessible for new business owners.

As you grow, clients may ask about trees, soil health, irrigation systems, and fertilisers. Additional training lets you expand your services and charge higher rates.

Target markets include:

• Private homeowners
• Landlords and property managers
• Holiday and vacation homes
• Commercial properties
• Public spaces and councils

Construction

Construction businesses provide building, renovation, and specialised trade services. Demand stays consistent; new housing needs builders, and existing homes always need renovations.

If you know a trade like carpentry, plumbing, or electrical work, you can specialise in niches such as:

• Door installation
• Staircase building
• Patio and deck construction
• Kitchen or bathroom renovations

Manufacturing, engineering and fabrication

Manufacturing, engineering, and fabrication businesses create custom products, components, or specialised equipment. This suits skilled engineers, builders, and welders who want to monetise their technical expertise.

Equipment and materials can be costly, so focus on a local niche with a few core products. B2B contracts (building components for other businesses) often provide steady work. Strong communication skills help you understand customer requirements, and design or drawing abilities add value.

Consulting

Consulting means providing expert advice to individuals or businesses in exchange for fees. This works well if you have specialised knowledge others would pay for.

Residential consulting options include:

• Interior design
• Home budgeting and financial planning
• Organisation and decluttering

Business consulting options include:

• Project management
• Research and analysis
• Editing and content strategy

Identify what's needed in your community, then develop and market your skills to meet that demand.

Business advisor or troubleshooter

Business advising helps companies identify opportunities, overcome challenges, and achieve growth. This suits experienced professionals with deep industry knowledge.

Success requires analytical thinking and strong communication skills. You're essentially packaging your career expertise into guidance that helps others avoid mistakes and speed up progress.

Webmaster

Webmaster services help small businesses set up, maintain, and secure their websites. Many business owners need a website but lack the technical skills to manage one, creating steady demand for this service.

Typical services include:

• Website setup and hosting management
• Security updates and backups
• Content updates and changes
• Basic SEO (search engine optimisation)

You can expand into eCommerce setup and digital marketing as your client base grows.

Digital marketer

Digital marketing services help small businesses reach customers through online advertising and content. Many business owners know they need digital marketing but don't understand how to do it effectively.

As a digital marketer, you can run social media advertising campaigns, manage search engine marketing, create content strategies, and track performance metrics for clients.

Freelance copywriter

Freelance copywriting means writing marketing and business content for clients. Demand is consistent across industries, and you can work remotely.

Common copywriting projects include:

• Website copy
• Blog posts and articles
• Email campaigns
• Social media content
• Advertising copy and taglines

Specialising in specific content types helps you work faster and increase your hourly earning potential.

Freelance designer

Freelance design provides visual design services to businesses, organisations, and agencies. Work varies based on your specialty and client base.

Common design projects include:

• Newsletter and publication layouts
• Certificates and awards
• Websites and landing pages
• Flyers, business cards, and print materials
• Overflow work from design agencies

Build a strong online portfolio to attract clients. Time and cost estimation skills are essential for profitability. Develop these early.

Photographer

Photography businesses capture images for events, portraits, products, or commercial use. This suits visually creative people who work well under pressure.

Event photography (weddings, ceremonies, corporate events) carries high stakes; you're recording moments that can't be recreated. Equipment costs can be significant, though hobbyists may already own suitable gear.

Clothing boutique

A clothing boutique sells curated fashion items to a targeted customer base. The second-hand and sustainable fashion market continues to grow as consumers prioritise eco-friendly and budget-conscious options; the market was valued at over $10 billion in 2024 and is projected to grow to over $22 billion by 2032.

Business models include:

• Recycled and upcycled clothing
• Second-hand and vintage resale
• Imported or hard-to-find labels
• Online store, physical location, or hybrid

Clothing label

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

Specialist categories to consider include:

• Sportswear and activewear
• Maternity clothing
• Baby and children's wear
• Fair trade and sustainable fashion

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

Beauty business

A beauty business sells grooming, skincare, or cosmetic products to customers seeking self-care solutions. Despite competition from major brands and celebrity lines, niche opportunities remain for differentiated offerings.

Develop a clear beauty philosophy (organic ingredients, specific skin concerns, or underserved demographics), then curate or create products that fit. You can make products from scratch, source from craft suppliers, or white-label existing formulations.

Pet care

Pet care businesses provide services for pets worldwide, a global market valued at $246.66 billion in 2023, with ownership growing among millennials.

Service options include:

• Dog walking
• Pet grooming
• In-home pet sitting while owners travel
• Pet accessories retail

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

Podcasting

Podcasting creates audio content for a specific audience. While podcasting can generate income, it often works better as a marketing platform that supports other revenue streams.

Competition is significant. Thousands of quality podcasts already exist. Your best approach is finding a niche topic where you offer unique insights, then monetising through courses, consulting, sponsorships, or related products.

Print-on-demand

Print-on-demand lets you sell custom merchandise without holding inventory. When customers order, a third-party printer produces and ships the item directly.

This low-risk model requires no upfront equipment investment. You create designs, list products (mugs, t-shirts, calendars, cushions), and the printer handles production and fulfilment.

Printer

A printing business produces custom printed materials using your own equipment (the opposite of print-on-demand, where you outsource production).

Common printing services include:

• Custom cards and invitations
• Flyers and marketing materials
• T-shirts and apparel
• Promotional items

Offering design services alongside printing increases your value and revenue per customer.

Teaching online courses

Teaching online courses lets you package your expertise into digital products that sell repeatedly. Platforms like Udemy make it simple to create and sell courses on almost any topic.

Demand for online learning remains strong, with students valuing the flexibility to learn at their own pace. This model scales well. Create the course once, then earn from each sale without additional time investment.

Tutor

Tutoring provides one-on-one educational support to students who need extra help with specific subjects. Demand spans all education levels, from primary school through university, creating a broad potential client base.

This works well as supplementary income or a full-time business, depending on your availability and subject expertise.

Teach languages

Language teaching helps students learn to communicate in a new language. You can teach your native language to non-native speakers. No additional language skills are required, though they help.

Patience and encouragement are essential, as students progress at different rates. Certification programs can build your teaching skills and credibility. Helping people communicate in a new country is rewarding work with consistent demand.

Childcare

Childcare businesses provide care for children while parents work or handle other responsibilities. Models range from working with one family as a nanny to running group care for multiple families.

Options include:

• Nanny or au pair services (one family)
• After-school care programs
• Neighbourhood daycare

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

App developer

App development builds mobile or web applications for businesses or consumers. This requires coding skills and user experience (UX) knowledge.

Work sources include:

• Direct contracts with businesses needing custom apps
• Overflow projects from app development agencies
• Your own app ideas developed on the side

You can also build your own tech business idea while freelancing for income stability.

List of side hustle ideas

Side hustles are businesses you run alongside a day job for supplementary income. Starting this way lets you test ideas and build revenue with lower financial risk. Only 3% reported failing at their side hustle, with most pivoting quickly if an idea doesn't pan out.

Side hustles are more likely to grow into successful full-time businesses. The ideas below are specifically chosen because they fit around employment schedules.

Join a focus group or take surveys

Focus groups and surveys pay you to share opinions on products, services, or marketing materials. Companies use this feedback to improve their offerings before launch.

Activities include testing new food products, previewing TV shows, or answering questions about buying habits. Provide constructive feedback to get invited back for future opportunities. Sign up with multiple research companies to generate regular extra income.

Mystery shopping

Mystery shopping pays you to visit stores as a regular customer and report on the experience. Businesses use these reports to evaluate staff performance and customer service quality.

Demand varies by location, so research opportunities in your area before committing. It's a flexible way to earn extra income while learning how successful retailers create customer experiences.

Rent your spare room

Renting your spare room generates income from unused space in your home. This requires home ownership (or landlord permission) and comfort sharing your living space with others.

Platforms like Airbnb simplify finding guests. Beyond income, hosting can be socially rewarding if you enjoy meeting new people.

Rent out your car

Rent out your car turns an idle vehicle into income. If your car sits unused regularly, rental platforms can connect you with drivers who need temporary transportation.

Key requirements include:

• Insurance: Update your policy to cover guest drivers
• Vetting: Verify renters are properly licensed
• Platform choice: Services like Turo handle bookings and provide some protection

Gig work

Gig work provides flexible, on-demand income through short-term tasks. Apps like TaskRabbit, Uber, and DoorDash connect you with opportunities that fit your schedule.

Common gig work includes:

• Rideshare driving
• Food and grocery delivery
• Errands and odd jobs
• Moving and furniture assembly

Factor in costs before calculating earnings. Fuel, vehicle wear, and your own tools reduce your actual take-home pay.

Deliver groceries or food

Grocery and food delivery earns money by transporting orders from stores or restaurants to customers. Apps like DoorDash, Instacart, and Uber Eats make it easy to start.

This works well for supplementary income but rarely scales into a full-time business. Factor fuel and vehicle maintenance into your earnings calculations. These costs significantly impact actual profit.

Flipping items for profit

Flipping items for profit means buying products at low prices and reselling them for more. Online marketplaces have expanded opportunities; you can find deals on one platform and sell at higher prices on another.

Success requires:

• Bargain hunting: Spotting underpriced items
• Research skills: Knowing what sells and for how much
• Patience: Building inventory and waiting for buyers

Expect occasional losses. Not every purchase will sell at a profit.

Handmade crafts

Handmade crafts turn creative skills into sellable products. Platforms like Etsy and local markets provide sales channels for artisan goods.

Popular craft categories include:

• Jewellery
• Candles and soaps
• Screen-printed apparel
• Woodwork and furniture
• Pottery and ceramics
• Art and paintings

Partnering with other artisans can expand your product range and customer reach.

Blogging

Blogging creates written content that attracts an audience you can monetise over time. Skilled writers can build this into full-time income, though it requires patience.

Monetisation options include:

• Platform payments: Medium pays per read
• Subscriptions: Substack lets you charge readers directly
• Sponsored content: Charge for including links to other sites
• Affiliate marketing: Earn commissions on recommended products

Building an audience takes time. Breakthrough content can accelerate growth, but expect a long runway before significant income.

How to come up with your own small business idea

Creating your own business idea starts with intentional brainstorming, even if the breakthrough comes later. Give your brain the problem to work on, and it often delivers solutions when you least expect them.

This phenomenon is called the Zeigarnik effect. Your brain continues processing problems even after you've stopped actively thinking about them. That's why ideas often arrive during runs, showers, or just before sleep, not while staring at a blank screen.

When brainstorming small business ideas

Before brainstorming, set some criteria for evaluating ideas. Look for something that's:

• Doable: You have the skills to deliver the product or service yourself
• Affordable: You can start with money you have or can access
• Lovable: You'd enjoy working on this for most of your waking hours
• Profitable: The business model can generate sustainable revenue that exceeds costs

Manage your small business with Xero

Once you've started a small business, you'll need to keep track of the finances for your new business. Xero accounting software makes it easy to send invoices, reconcile your bank transactions, and run reports, so you can focus on running your business.

Get one month free.

FAQs on small business ideas

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

What's the best small business to start with little money?

Service-based businesses typically require the least upfront investment. Options include virtual assistance, freelance writing, tutoring, cleaning services, and consulting. These businesses let you start with skills you already have and minimal equipment.

How do I know if my business idea will work?

Test your idea before fully committing. Start by talking to potential customers about their needs and whether they'd pay for your solution. Offer a pilot version of your product or service to a small group and gather feedback. Track whether people actually purchase, not just express interest.

Can I start a business while working full-time?

Yes. Many successful businesses begin as side hustles. Choose an idea that fits around your work schedule, such as freelancing, online selling, or service work you can do evenings and weekends. This approach lets you test the business and build revenue before leaving your job.

What licenses or permits do I need to start a small business?

Requirements vary by location and business type. Most businesses need to register with local government authorities. Some industries (childcare, food service, healthcare) require specific licenses or inspections. Check with your local council or small business advisory service for requirements in your area.

How long does it take for a small business to become profitable?

Timeline varies by business type and how much time you can dedicate. Research shows many side hustles achieve profitability within 3–6 months. Full-time businesses may take longer initially but can scale faster once established. Focus on keeping costs low and generating revenue quickly to reach profitability sooner.