Many people assume you need six figures to start a business. But thanks to evolving technology and the modern world of work, it’s easier than ever to launch a new venture.
It’s fortuitous timing. In today’s poor economy, accessing the funding you need has also become more challenging than ever.
If securing financial support now proves to be difficult, a great option is to monetise the skills you already have. This will allow you to launch on a shoestring budget. Say, £1,000?
Whether you dream of one day running a fully-fledged limited company, or sticking to a side hustle for extra cash, here are nine business ideas you can get going with for just £1,000.
1. Opening a market stall
Not got £30,000 to open a brick-and-mortar shop? Setting up a market stall is a cost-effective way to build your retail brand while connecting directly with customers.
Whether you’re selling handmade goods or fresh produce, a market stall offers aspiring shop sellers the chance to engage directly with an audience, giving them immediate customer feedback and insights to further identify their target market.
The cost to set up a market stall largely depends on factors like location, market type (e.g. permanent, seasonal, or event) and stall size. Fees usually vary between £20-£100 per day, though. Research the best markets to sell at near you for a more specific cost breakdown.
2. Salon chair rental
Starting your own salon and hairdressing business costs a lot, especially when factoring in expenses like renting a space, salon equipment, stock and insurance. However, there’s a cheaper alternative: renting a hairdressing chair.
Chair rental involves paying a weekly or monthly fee to work in an established salon, rather than renting your own space – making it a flexible and budget-friendly way to build your client base, set your own hours, and keep more of your earnings without salon overheads.
The average cost to rent a salon chair depends on location, demand, and included amenities, but typically ranges from £50-£250 per week. The three main options to rent a salon chair are:
- Fixed rent: the salon charges the business a fixed rate every month to set up within their establishment.
- Percentage agreement: instead of charging rent, the salon takes a percentage of the hairdresser’s earnings.
- A bit of both: some salons use a hybrid model, charging a fixed rent while also taking a percentage of earnings.
3. Dropshipping
Dropshipping is when you sell products without holding any inventory. Instead of buying stock upfront, you partner with a supplier that handles storage, packaging and shipping. When a customer places an order on your online store, you purchase the item(s) from the supplier, who in turn ships it directly to the customer.
The main benefit of dropshipping is that there are low startup costs and you only have to buy products when you make a sale. Dropshipping can easily be done on a budget, with the main costs including:
4. Dog walking
If you love dogs and enjoy taking your own out for walks, then a dog walking business is a flexible and low-cost way to earn money, all while spending time with your furry friends.
Moreover, it offers a valuable service for busy pet owners who may not have the time to walk their dogs regularly, as well as elderly or disabled individuals who might struggle to do so themselves. The main costs to consider for a dog walking business include:
- Insurance: public liability insurance (around £80-£150 per year) to protect against accidents or injuries involving the dogs in your care.
- Equipment: leads, harnesses, treat pouches, poo bags, and a first aid kit.
- Transport: if you plan to cover a wider area, you might need a car or van, plus fuel and insurance costs.
5. Online services
The beauty of today’s digital age is that it’s easier than ever to find services for just about anything — from freelance work and online coaching to virtual assistance and digital marketing. And if you have a specific set of skills, you can turn them into an online business, offering your expertise to clients around the world with minimal startup costs.
There are many options to explore when setting up online services, including freelance copywriting, graphic design, social media management, web development, SEO and more.
While an online business is relatively low-cost compared to traditional businesses, there are still some essential expenses to consider. These include:
6. Outside services
On the other hand, if you’re looking for a business idea that involves more hands-on work, there are plenty of low-cost options out there in the real world. Whether you’re interested in working directly with people, or offering services that require a bit of physical effort, there are plenty of avenues you can choose that won’t break the bank.
A few ideas could be running a landscaping business, house cleaning, and handyman services. In terms of cost, you can expect costs for:
- Logistical purchases (e.g. a lawnmower for around £200). You may also need a car/van for transport
- Basic supplies (e.g. vacuum, mop and cleaning products): around £50-£200
- Specialised tools (e.g. drills, saws or plumbing equipment): around £100-£500
7. Tutoring
If you want to share your skills with others, then becoming a tutor could be right up your street. Whether you want to teach online or in-person, setting up your own tutoring business is both cost-effective and helps others succeed by sharing your expertise.
Having the right qualifications and skills is the key thing. But you’ll also need to consider a few upfront costs as well. These include:
- Teaching materials: books, video conferencing software, or other educational resources (around £20-£200)
- Insurance: professional indemnity insurance or public liability insurance to protect yourself and your clients (around £50-£150)
- Technology and tools: if you’re tutoring online, you’ll need a computer with a webcam for around £100 (as well as a reliable internet connection)
8. Ecommerce selling
Setting up a traditional retail store is a heavy investment. As we’ve already covered, starting a market stall can be a good way into the industry. But thanks to the rise of ecommerce businesses, an even easier option is to start an online store.
This business model typically has minimal upfront costs and enables sellers to reach customers from all around the UK, within the comfort of their own home.
Even if you don’t feel like setting up your own website, there are plenty of platforms where you can sell online for a cheap cost, including Amazon, eBay, and Etsy. These platforms provide access to a large target audience without the need for a complex setup.
Key costs to consider include:
- Subscription fees: the average cost of a website builder for a small business can range from £1.99 to £259 per month.
- Listing fees and transaction fees: for example, Etsy charges UK sellers 16p per listing, as well as a 4% + 20p processing fee per transaction.
- Payment processing fees: payment processors like PayPal or Stripe charge a transaction fee of around 2.9% + £0.30 for each sale.
- Insurance: if you’re shipping valuable items, you may need to add insurance (£1-£5 per item depending on value).
9. Virtual assistant business
A virtual assistant (VA) business involves providing administrative, technical or creative support to clients remotely. This means you offer services that help businesses or entrepreneurs manage their tasks, without the need for them to hire a full-time employee.
Not only is investment minimal, but it also offers great flexibility and work-life balance, as you can often choose your working hours and location. Plus, as a virtual assistant, you can offer a range of services based on what you’re good at and what you enjoy — whether that’s managing emails, handling social media or creating content.
These are the typical costs you can expect by becoming a virtual assistant:
- Training and certifications: prices for VA courses typically range from £50 to £500, depending on the specialisation (e.g. administrative, social media management, etc.)
- Software and tools: organisational skills are vital for VAs. project management software, communication platforms (such as Zoom or Slack), and office tools (Google Workspace) can cost anywhere from £10-50 per month.
- Insurance: liability insurance to protect yourself from potential legal issues, which costs around £50-£150 per year.
Other costs to consider
While each new business or side hustle comes with different costs, there are essential expenses that apply to all businesses.
1. Business registration fees
Registering your business with Companies House typically involves a fee of around £50-£78. However, this does not apply if you operate as a sole trader. You can find a list of company incorporation and registration fees here.
2. Trademark registration
If you want to protect your business name or logo, you’ll need to register for a trademark. This costs from £40 to £200 and must be paid for via the government website.
3. Domain name
Securing a website domain name will help you establish a professional online presence, build credibility, and make it easier for customers to find you. Depending on the hosting provider you choose, costs can start from as little as £2.50 per month.
4. Business website
Nowadays, you don’t have to spend a fortune to build a website or hire a professional to do it for you. Many website builders offer a cheap, easy-to-use platform where you can create a professional-looking website without coding or design skills needed, and without having to fork out a lot of money.
While there are some free website builders out there, costs for extra features can cost up to £260 annually, depending on the platform’s pricing plan.
5. Office space (if applicable)
If you plan to use office space to run your business, costs like rent, building maintenance, security, heating, and other services can quickly add up.
Alternatively, if getting a commercial lease for an office space is out of your budget, you can look into coworking spaces. These offer flexible, cost-effective options where you can rent a desk or private office on a monthly – or even daily – basis. They also come with perks like high-speed internet, meeting rooms, printing services and even free tea and coffee.
Ready to get started?
Starting a business doesn’t have to cost a fortune, as there are many ways you can get going with as little as £1,000 — especially if you focus on low-overhead ideas, use existing skills, and make the most of free or affordable online tools.
That said, if you do want to think bigger, our article on small business grants lists all of the latest funding grants that are available in the UK, as well as how to apply.
There are also grants available for women-led businesses, offering extra support to help female entrepreneurs get their ideas off the ground and grow their ventures with confidence.
