25 online business ideas and how to get started today

Published Friday 20 March 2026

Table of contents

• Why start an online business
• What type of online business could you set up?
• Where to find online business ideas and inspiration
• 25 online business ideas to get you started
• How to choose the right business idea for you
• Tips for online business success
• How to turn your idea into reality
• FAQs on online business ideas

Key takeaways

• Start with service-based businesses like virtual assistance or freelance writing if you're a beginner, as they require minimal upfront investment and let you monetise existing skills immediately.
• Find your niche by targeting a specific, well-defined customer segment rather than competing broadly, as the internet connects you with scattered customers worldwide who share specialised interests.
• Validate your business idea by researching existing demand through online marketplaces, social media platforms, and competitor analysis before investing time and money into development.
• Differentiate yourself from larger competitors by putting your personal story into your branding and adding thoughtful touches like nice packaging and personal notes that big retailers cannot replicate.

Why start an online business

An online business lets you earn income through the internet, whether selling products, offering services, or creating digital content. For many small business owners, it's a way to reach more customers without the overhead of a physical location.

Online businesses offer several advantages over traditional models:

• Flexibility: Set your own hours and work from anywhere with an internet connection
• Lower start-up costs: Skip expensive rent and reduce upfront investment
• Global reach: Sell to customers beyond your local area from day one
• Scalability: Grow without proportionally increasing your costs

You can start part-time while keeping your current job, then scale up as revenue grows.

What type of online business could you set up?

Online businesses generally fall into four main categories. Understanding these helps you identify which model fits your skills and goals:

• Service-based: Deliver expertise remotely through consulting, coaching, design, or virtual assistance
• Retail and ecommerce: Sell physical products through your own shop or marketplaces like Amazon and Etsy
• Digital products: Create and sell downloadable assets like courses, templates, ebooks, or software
• Content and media: Build an audience through blogs, podcasts, or videos that generate advertising or sponsorship income

Here's a closer look at each business type and how to get started.

Service-based businesses

Online service businesses let you sell your expertise remotely. They typically require minimal start-up costs because you're monetising skills you already have.

Common online service businesses include:

• Virtual assistance: Administrative support for busy business owners
• Consulting: Strategic advice in your area of expertise
• Coaching: One-to-one or group guidance in fitness, business, or personal development
• Freelance creative work: Design, writing, video editing, or web development
• Online tutoring: Teaching students remotely in academic or professional subjects

Most service businesses start with one or two foundation clients and grow through referrals.

Olivia Park transitioned her personal training business from in-person sessions in Taiwan to fully online delivery after relocating to South Korea. Her social media wellness content attracted new audiences, enabling her to launch Olivia Park Coaching with tiered service offerings.

"It's allowed me to create more products with different tiers of service," she explains. "Some people are happy to do the online courses on their own. Others ask for customised routines. And others want one-to-one time."

The result: she now delivers twice as much service online as she could with in-person training alone.

Referrals remain the most reliable growth channel for online service businesses, just as they are for traditional ones.

Michael Yared built his fully online app development agency, Echobind, primarily through word of mouth:

"We spun off with one anchor client and built up from there. It was tough for the first couple of years because we never knew if the projects would keep coming. But we just kept asking for referrals and it's still our biggest source of new work."

Echobind has since grown to 40 fully remote staff, demonstrating how online service businesses can scale.

Online retail businesses

According to Xero research, these retail categories attract the most UK online sellers:

• Fashion and clothing: 28% of online retailers
• Toys, hobbies, and crafts: 21%
• Electronics: 20%
• Hair and beauty: 19%
• Jewellery, gifts, and homeware: 18% each

Popular categories mean proven demand, but also more competition. Consider whether you can bring something distinctive to these markets or find a more specialised niche.

Source: Xero eCommerce Survey, January 2021

There are several ways to source products for your online retail business.

Make products yourself

Handmade products let you turn hobbies into income. Photography skills become print-on-demand calendars and cards. Knitting expertise becomes custom pet clothing. If you can create something unique, you can sell it online.

Work with manufacturers

Contract manufacturing lets you sell products without making them yourself. Partner with manufacturers to customise existing products or create something original. Many offer small batch runs at reasonable costs, so you can test ideas without large upfront investment.

Resell products

Reselling means buying products wholesale and selling them at a markup. The key to standing out is to differentiate yourself. Build a memorable brand, curate products around a specific theme, or target an underserved customer segment.

Try dropshipping

Dropshipping is a retail model where you never handle inventory. Customers order from your online store, and your supplier ships directly to them. You focus on marketing and customer service while the supplier handles fulfilment.

This model suits people with strong marketing skills who want to test product ideas without upfront inventory costs. Learn more in the guide to dropshipping.

Apps and software

Software businesses create applications that solve specific problems for consumers or businesses. Successful apps can scale to millions of users, but they require technical skills or the budget to hire developers.

Two main paths exist for software businesses:

• Consumer apps: Games, productivity tools, or lifestyle apps sold through app stores
• Business apps: Specialised software that integrates with platforms like Xero to solve industry-specific problems

App development requires significant upfront investment in building and marketing your product before generating revenue. This path suits people with technical backgrounds or access to development resources.

For detailed guidance, see the guide to making money from an app.

Digital products and content

Digital products are assets you create once and sell repeatedly, such as ebooks, online courses, templates, or stock photography. They offer high profit margins because there's no manufacturing or shipping cost.

Content businesses build audiences through blogs, podcasts, or video channels, then monetise through:

• Advertising: Display ads or sponsored content placements
• Affiliate marketing: Earning commission when your audience buys products you recommend
• Subscriptions: Charging for premium content access
• Sponsorship: Brands paying for exposure to your audience

Content creation is competitive, and most creators take months or years to generate meaningful income. Success typically requires a distinctive angle, consistent publishing, and strong audience engagement. Keep your day job while you build your audience.

Where to find online business ideas and inspiration

Finding a profitable online business idea starts with research. Here are proven sources to spark inspiration:

• Online marketplaces: Browse trending items on Amazon, Etsy, and eBay to spot products with proven demand
• Social media platforms: Search hashtags on Instagram, Pinterest, and TikTok to discover what audiences engage with
• Crowdfunding sites: Review successful campaigns on Kickstarter and Indiegogo to identify gaps you could fill
• App stores: Check top sellers and new releases to see which problems people pay to solve
• YouTube and podcasts: Listen to what creators discuss and what their audiences ask for

25 online business ideas to get you started

Looking for specific inspiration? Here are proven online business ideas across different categories:

Service-based ideas:

• Virtual assistant: Provide administrative support to busy entrepreneurs remotely
• Social media management: Handle content creation and posting for businesses
• Bookkeeping services: Manage accounts for small businesses using cloud software
• Online tutoring: Teach academic subjects or professional skills via video calls
• Freelance writing: Create content for websites, blogs, and marketing materials
• Graphic design: Design logos, marketing materials, and social media graphics
• Web development: Build and maintain websites for businesses
• Online coaching: Guide clients in fitness, career, or personal development

Retail and product ideas:

• Handmade crafts: Sell unique items through Etsy or your own shop
• Print-on-demand: Design products printed and shipped by a third party
• Vintage or second-hand goods: Curate and resell clothing, furniture, or collectibles
• Subscription boxes: Curate themed product selections delivered monthly
• Dropshipping store: Sell products shipped directly from suppliers
• Private label products: Rebrand existing products under your own label
• Pet products: Tap into the growing market for pet accessories and treats

Digital product ideas:

• Online courses: Package your expertise into structured learning programmes
• Ebooks and guides: Write and sell downloadable publications
• Stock photography: License your photos to businesses and creators
• Templates and printables: Create designs others can customise and use
• Software tools: Build applications that solve specific problems

Content and media ideas:

• YouTube channel: Create video content and monetise through ads and sponsorship
• Podcast: Build an audience around a topic and attract sponsors
• Blog: Write about your expertise and monetise through ads or affiliate links
• Newsletter: Build a subscriber base and offer premium content or sponsorship
• Membership community: Create exclusive content for paying members

How to choose the right business idea for you

The best online business idea is one that matches your skills, fits your available time, and serves a market willing to pay. Here's how to narrow your options:

Assess your skills and experience:

• What do you know more about than most people?
• What tasks do you enjoy that others find tedious?
• What problems have you solved in previous jobs?

Consider your available time:

• Service businesses require trading time for money initially
• Product businesses need upfront time to source or create inventory
• Digital products take time to create but can generate passive income

Evaluate start-up costs:

• Service businesses often need minimal investment
• Retail businesses require inventory or manufacturing costs
• Software businesses need development resources

Research market demand:

• Search for similar products or services to confirm people are buying
• Check competitor reviews to identify gaps you could fill
• Test interest with a simple landing page before building fully

Balance passion with profitability:

• Let enthusiasm help you persist through challenges
• Passion works best when paired with paying customers
• Look for overlap between what you enjoy and what people need

Tips for online business success

Once you have an idea, these strategies can help you compete and thrive in a crowded online market.

Find your niche

A niche business targets a specific, well-defined customer segment rather than competing broadly. Online selling makes niche strategies viable because you can reach scattered customers who share specialised interests.

As Marc McKeown of FortBrave explains: "Niche shopping has been enabled by the internet. It's much easier to find out-of-the-ordinary products online than to traipse around town for it, so that's what people do."

Hyper-specific products that seem too unusual for local markets often thrive online. The internet connects you with customers worldwide who share your particular interest.

Beyond finding your niche, you'll need strategies to compete with established players.

Stand out from bigger competitors

Small online businesses compete on authenticity, not price or marketing budget. Your personal story and attention to detail create experiences that large retailers cannot replicate.

Marc McKeown built his brand around this principle:

"Put as much of your own story into your product and branding as you can. Customers will gravitate to you because of your authentic story, even if they have to pay a little bit more."

"Differentiate yourself from the corporate experience. Package products nicely and put a personal note in. Amazon can't compete with that."

Thoughtful packaging and personal touches can even earn you free marketing when customers share unboxing experiences on social media.

Learn more about ecommerce, shipping, and marketing in the guide to starting an online business.

How to turn your idea into reality

Launching an online business requires planning, but you don't need to have everything figured out before you start. Here's how to move from idea to action:

1. Validate your idea: Research whether people will pay for what you're offering. Look for existing demand and identify your target customers.
2. Start small: Test your concept with minimal investment before scaling. A simple website or marketplace listing is enough to begin.
3. Create your online presence: Build a professional website or shop. Choose platforms that match your business type and technical comfort level.
4. Sort out the finances: Open a business bank account and set up accounting software to track income and expenses from day one.
5. Launch and learn: Get your first customers, gather feedback, and refine your offering based on what you learn.

Whether you're selling products, offering services, or building the next big app, managing your finances can be simple. Get one month free and spend more time growing your business with streamlined bookkeeping.

For detailed guidance, read the guide to starting an online business.

FAQs on online business ideas

Starting an online business raises lots of questions. Here are answers to some of the most common ones.

Which online business is best for beginners?

Service-based businesses like virtual assistance, freelance writing, or social media management are often easiest to start. They require minimal upfront investment and let you monetise existing skills immediately.

How much money do I need to start an online business?

Costs vary widely by business type. Service businesses can start for under £100, covering just a website and basic tools. Product businesses typically need £500 to £5,000 for initial inventory. Software businesses may require £10,000 or more for development.

Do I need to register my online business in the UK?

You must register as self-employed with Her Majesty's Revenue and Customs (HMRC) if you earn more than £1,000 from self-employment in a tax year. You'll need to file a Self Assessment tax return annually, and under new rules, individuals with gross income over £50,000 must keep digital accounting records and submit quarterly updates. Some businesses also need to register for VAT once turnover exceeds the threshold.

How long does it take to make money from an online business?

Most online businesses take six to 12 months to generate consistent income. Service businesses can earn revenue within weeks if you have existing contacts. Product and content businesses typically take longer to build audience and sales momentum.

What software do I need to run an online business?

Essential tools include accounting software to track finances, a website or ecommerce platform, and payment processing. As you grow, you may add email marketing, customer relationship management, and inventory management tools.