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What Are the Best Small Businesses to Start in 2026?
With 2026 kicking off, there’s no better time to launch a side hustle you’re excited about. If you’re ready to try something new, build extra income or turn a talent into a business, there are plenty of simple ideas you can start right away.
Key takeaways
- 2026 is shaping up to be a positive year for small, flexible and online businesses.
- Low-cost ideas such as tutoring, content creation, VA work and mobile beauty remain strong choices.
- The best ideas use skills you already have and can be tested with little risk.
- You only need a few simple steps to register your business and start trading with confidence.
- Companies MadeSimple can help you set up a limited company fast, and stay compliant as you grow.
Why is 2026 a great year to start a small business?
Work in the UK continues to shift. More people want flexible hours, extra income or a career that gives them control. Remote work, digital tools and online marketplaces are now part of everyday life, which makes it easier than ever to start small and build at your own pace.
Consumers also enjoy buying from independent brands and local service providers. They want personalised support, quick communication and businesses they can trust.
All of this creates a strong landscape for new founders in 2026, especially for:
- Online services
- Home-based businesses
- Creative and freelance work
- Local service providers
- Simple, low-cost ideas you can run alongside a job or studies
This guide focuses on the most practical options. The ideas below need minimal money, rely on skills you already have and fit well with the current UK work environment.
Best Low-Cost Business Ideas to Start in 2026 (UK)
Each idea includes what it is, why it works, who it suits, and the simple next steps to get started.
1. Online tutoring
What is online tutoring?
Teaching students in subjects like maths, English, science, languages or exam prep through video calls.
Why should I start online tutoring?
Online learning is now common. Students want flexible help in evenings and weekends, and parents value personalised support.
Who it suits
People with strong subject knowledge who enjoy explaining things clearly.
How do I become an online tutor?
Choose your subject, set your rates, create a simple online profile and register your business when you’re ready to take regular bookings.
Where to get started
2. Freelance content creation
What is freelance content creation?
Writing posts, creating videos, producing graphics or making simple marketing content for businesses.
Why should I start freelance content creation?
Small businesses need consistent online content, but often can’t hire full-time staff. Freelancers fill this gap.
Who it suits
People who enjoy writing, design, filming or editing.
How do I become a freelance content creator?
Build a small portfolio, pick your niche and set up a business structure when you start earning regularly.
Where to get started
3. Social media management
What is social media management?
Running social media accounts for businesses. This includes creating posts, replying to comments and planning content.
Why should I become a social media manager?
Shops, cafes, salons and trades rely on social media to reach customers. Many need support managing it.
Who it suits
Anyone who understands platforms like Instagram, TikTok or LinkedIn and enjoys trends and community building.
How do I become a social media manager
Create simple monthly packages, start with one or two clients and register your business as it grows.
Where to get started
4. Virtual assistant (VA) services
What is a virtual assistant?
Providing remote admin support, including email management, scheduling, research, basic bookkeeping and customer communication.
Why should I become a virtual assistant?
Remote admin support is now a normal part of business. Owners often want flexible help rather than hiring full-time.
Who it suits
Organised people who enjoy structure and problem-solving.
How do I become a virtual assistant?
List your services, set your rates and choose whether to operate as a sole trader or form a limited company.
Where to get started
5. Niche e-commerce (Etsy, Depop or your own site)
What is e-commerce?
Selling products online. This can include handmade goods, personalised gifts, curated items or digital downloads.
Why should I start e-commerce?
Online shopping continues to grow, and customers love supporting small and unique brands.
Who it suits
Creative people or those with an eye for trends.
How do I start e-commerce?
Pick a niche, test a small product range, and register your business when you’re trading regularly.
Where to get started
6. Mobile beauty or grooming services
What is a mobile beauty/grooming service?
Providing nails, lashes, hair or grooming services in customers' homes or at events.
Why should I start a mobile beauty/grooming service?
Mobile services offer convenience for customers and lower costs for beauty professionals who don’t want a salon lease.
Who it suits
Qualified practitioners or those willing to train and work flexibly.
How do I start a mobile beauty/grooming service?
Build a simple brand, set up online booking and register your business before promoting services.
Where to get started
7. Personal training or online coaching
What is personal training?
Helping people reach fitness goals through 1-to-1 sessions, small-group classes, or online programmes.
Why should I become a personal trainer?
Well-being stays a priority. Many people prefer flexible workouts that they can fit around busy schedules.
Who it suits
Those passionate about health, fitness and motivating others.
How do I become a personal trainer?
Get qualified, decide whether you want to coach online, in person or both and set up your business legally.
Where to get started
- PT Distinction
- MyPTHub
- ClassPass (for visibility)
8. Pet sitting and dog walking
What is pet sitting?
Caring for pets while owners are at work or away. This may include daily walks, home visits or overnight stays.
Why should I become a pet sitter?
Pet care continues to be in steady demand. Many people want reliable, personal help rather than large companies.
Who it suits
Animal lovers who are dependable and enjoy outdoor time.
How do I become a pet sitter?
Set your routes and services, get insured and register your business as your client base grows.
Where to get started
9. Home cleaning or organising services
What is a home cleaning/organising service?
Regular house cleaning, deep cleans or home organisation sessions.
Why should I start a cleaning/organising service?
Busy households value support that saves time. These services grow quickly through word of mouth.
Who it suits
People who are thorough, trustworthy and like practical work.
How do I start a cleaning/organising service?
Start with local clients, set clear prices and register your business as demand increases.
Where to get started
- Nextdoor (local clients)
- Facebook Marketplace
- Taskrabbit
10. Creating and selling digital products
What does selling digital products involve?
Designing digital files such as planners, templates, study tools, fitness guides or social media packs.
Why should I start selling digital products?
Digital products have low costs, can be sold globally, and work well for creators who want a flexible income.
Who it suits
People who enjoy art and organisation.
How do I start selling digital products?
Create a small collection, list it on marketplaces and track your earnings from day one.
Where to get started
How to choose the right business idea for you
A simple way to decide is to ask:
- What am I good at right now?
- How much time do I want to give each week?
- How much money can I invest at the start?
- Do I want to work online, in person or both?
- Is this a side hustle or something I want to grow full-time?
Pick the idea that feels realistic and exciting. Start small, test demand and then build from there.
How to set up your small business in the UK
Once you have chosen your idea, follow these steps.
1. Choose your business structure
You can start as a sole trader or form a limited company.
- A sole trader is simple if you're testing an idea.
- A limited company offers limited liability, a professional structure and separate finances.
- Check out our blog on the differences between a sole tradership and a limited company for more information
Companies MadeSimple makes forming a limited company fast and easy with clear guidance.
2. Check your company name
Make sure the name is available, professional and works on social media and your website.
See tips for what makes a good company name.
3. Register your company
Check out our blog on what documents you need to set up a limited company in the UK.
Using Companies MadeSimple keeps the process quick, clear, and reduces mistakes.
4. Open a business bank account
This helps you separate personal and business finances and makes bookkeeping simpler.
Explore our banking partners here.
5. Manage your tax and reporting
Keep records of all income and expenses. If you run a limited company, you will need to file annual accounts and a confirmation statement.
If you are unsure of your responsibilities, it can help to speak with an accountant or bookkeeper early on.
Ready to start your business in 2026?
You don’t need a huge investment or years of experience to begin. Many of the best ideas for 2026 are low-cost, flexible and built around skills you already have.
If you’re ready to move forward, Companies MadeSimple can help you:
When you’re ready, you can register your company and start your 2026 business journey with confidence.
