Thinking of starting your own business but worried about the cost? Good news — you don’t need a fortune to become your own boss. With a bit of creativity and just £1,000, you can launch a venture that’s both affordable and profitable. Whether you’re looking for a side hustle or a full-time gig, here are some of the best low cost business ideas in the UK to get you started.
Budget-savvy ventures for aspiring entrepreneurs in a tough economy
Many people believe that starting a business requires a hefty five or six-figure investment. But in today’s digital-first economy, launching a profitable venture has never been more accessible — or more affordable. With just £1,000 in hand, you can tap into your skills, creativity, and ambition to turn a simple idea into a side hustle or even a full-blown business.
Here are nine realistic, low-cost business ideas that can help you start your entrepreneurial journey on a budget.
1. Open a Market Stall
If a £30,000 retail unit feels out of reach, a market stall offers a wallet-friendly alternative to selling goods directly to customers. From handmade crafts to local produce, market stalls let you test products and engage with your audience for real-time feedback.
Set-up costs vary depending on location and stall type (permanent, seasonal, or event-based), with daily fees ranging from £20 to £100. Research local markets to find the best value and fit for your products.
2. Rent a Salon Chair
Dreaming of your own hairdressing business but can’t afford salon rent? Chair rental is a popular option for stylists looking to set their own hours and keep more of their earnings.
With weekly rental fees between £50 and £250, stylists can choose between fixed rent, commission-based, or hybrid models. It’s a flexible route to building your client base without the financial strain of opening a full salon.
3. Start a Dropshipping Store
No inventory? No problem. Dropshipping is a great low-risk way to run an ecommerce store, where suppliers handle packaging and shipping. Your main responsibilities: set up a store, market it, and make sales.
Startup costs include ecommerce setup (from £20), paid ads (£5–£20/day), and optional tools like SEO or email marketing (£50–£200/month). Best of all, you only buy stock when you get an order.
4. Launch a Dog Walking Service
If you love animals and want to spend more time outdoors, dog walking is a fulfilling and low-cost service to offer. It’s particularly valuable for busy pet owners or those unable to walk their pets themselves.
Start-up costs include public liability insurance (£80–£150/year), walking gear, and potentially transportation if covering a wider area.
5. Offer Online Services
Whether you’re a copywriter, designer, or SEO expert, the digital age has opened the door for online service businesses that require little more than your expertise and a laptop.
Essential costs may include a website builder (from £1.99/month), payment gateways (usually a % of each sale), and accounting tools (around £15/month). You can work from anywhere and scale on your own terms.
6. Provide Outdoor or Manual Services
For those who prefer physical work, consider services like house cleaning, gardening, or handyman support. These are always in demand and don’t require fancy degrees — just good tools and great service.
Expect initial costs for equipment like a lawnmower (£200), cleaning supplies (£50–£200), or specialised tools (£100–£500), plus transport if needed.
7. Become a Private Tutor
Share your knowledge through tutoring, either online or in-person. Whether you’re a maths whiz or language expert, tutoring is both fulfilling and low-cost.
Start-up expenses include teaching materials (£20–£200), a webcam and stable internet connection, and insurance (around £50–£150/year). All you need is your subject knowledge and some basic setup.
8. Set Up an Ecommerce Shop
Want to sell goods without a physical store? Ecommerce platforms like Etsy, eBay, and Amazon make it easy and affordable to launch a shop from home.
Costs include platform fees (Etsy charges 16p/listing + 4% + 20p per transaction), optional subscription plans (£1.99–£259/month), and payment processing charges (around 2.9% + £0.30 per sale). Add product insurance for high-value items if needed.
9. Start a Virtual Assistant (VA) Business
Virtual assistants offer remote admin and support services for busy professionals. Tasks might include inbox management, calendar scheduling, social media, and more.
Start-up costs are minimal: VA training courses (£50–£500), software tools like Slack or Google Workspace (£10–£50/month), and liability insurance (£50–£150/year). Flexibility and low overhead make this one of the best side hustles around.
Don’t Forget These Essentials
Even budget businesses have unavoidable costs. Here are a few universal ones to keep in mind:
Business Registration: Register with Companies House from £50–£78 (free for sole traders).
Trademark Registration: Protect your brand name or logo from £40–£200 via the gov.uk site.
Domain Name & Website: A domain starts at £2.50/month, while a basic business website can be built for under £260/year using easy-to-use builders.
With determination, the right planning, and just £1,000, you can lay the foundation for a business that suits your skills, lifestyle, and goals. Whether you’re after financial freedom or simply a side income, these ideas prove that small budgets can lead to big opportunities.
