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In the wake of the Chancellor’s Autumn Budget, you may not think that 2025 is the best time to start a new business venture. It’s been widely reported that employers will ‘bear the brunt’ of the Budget, however, look beyond the headlines and you’ll see that things look a lot brighter for the smallest businesses. The measures to support businesses certainly seem to favour smaller outfits over big corporations.
So, if you’ve been longing to strike out on your own, why not take the first step towards making it happen with our list of small business suggestions? It can be daunting to leap off the career ladder and into the unknown, but if you can match your expertise to a growing demand, you’ll be off to a strong start. Take a look at our list of the top small business ideas and who knows what inspiration might strike.
Dropshipping
Want to run your own online store, but don’t know where to start? Don’t want to bear the logistics and warehousing costs? Hate the idea of surrendering every spare inch of floor space in your home to inventory?
Sounds like dropshipping could be ideal for you.
With dropshipping, a third-party supplier fulfils the order on your behalf, and you act as an intermediary who facilitates the sale and pockets the profits.
The UK e-commerce market is expected to grow by 22% between 2024 and 2029. This means that there has never been more opportunity to engage your audience. Try to focus on niche fast-moving products that appeal to a specific audience for the best results.
Online learning and courses
Straining to think of the right product to bring to a busy market? Perhaps the most marketable commodity you have is your knowledge and insight. Sharing that knowledge in the form of an online course could be extremely lucrative, with very low startup costs.
The online learning market is expected to be worth an estimated $788 billion by 2032. Now’s the time to get in on the ground floor. Start building your website, garnering a following, showing off your knowledge with your online content, and start enrolling students.
Online dating apps
Today many of us navigate the world of dating in the same way that we order a pizza – through our mobile phones. As well as the big trinity of Tinder, Hinge and Bumble, a growing number of dating apps have arisen to cater to more specialist niches. For instance, people can now find potential matches based on their religious faith, political persuasion or even their fandoms.
If you’re creative, have a flair for coding, and want to help people find romance, this could be an excellent idea for a small business.
Print on demand
Want to combine the convenience of dropshipping with an opportunity to monetise your creativity? Print-on-demand services offer an excellent way for the artistically inclined to make money selling printed products.
From greeting cards to calendars to wall art, you may find that your digital artwork, paintings or photography can become a potentially lucrative revenue stream with virtually no overhead costs.
Specialist car detailing
In economically tough times, many turn to the luxury market to find opportunity. Providing services to high-value individuals can provide a rich stream of revenue even in difficult times. If you have a passion for luxury vehicles and know how to make their bodywork gleam, a specialist car detailing service is a great business idea for you.
Overhead costs are minimal, and you don’t even need premises. You can detail people’s vehicles on their own driveways or front gardens.
Sustainable e-commerce
Climate change and sustainability are only going to continue to gain momentum as ethically-minded consumers try to do their bit for carbon neutrality. Similarly, the popularity of online shopping has been on an upward trend for years as the internet has taken on such a central part in our lives. Combine the two and you’re in a growth area for business in 2025 and beyond.
Reselling
Vintage and second-hand fashion is huge right now. According to Deloitte research, 58% of consumers surveyed say that they are reducing the number of new products they buy in an effort to pursue a more sustainable lifestyle.Selling pre-loved clothing is a smart way to give customers a dose of retail therapy without any of guilt associated with fast fashion. You can hand-curate apparel collections and sell them online as-is, or as unique altered pieces.
Accessories
The high street has changed a great deal in recent years with many previously ubiquitous gift-giving chains drastically scaling back their market presence. Now may be the best time to refine your craft and stand out as a professional independent business, as support for smaller, more ethically-focused businesses continues to rise.
Biodegradable and reusable products
Over the past few years, people have become more aware of our planet’s health. Because of this ‘trend’, biodegradable phone cases, personalised tote bags, reusable face wipes, and beeswax food accessories have all shared the recent spotlight. As well as being highly sustainable, they are also cost-saving, making them appealing to those who need to cut household costs.
Your imagination really is the limit here, with the possibilities for sustainable and biodegradable products growing every day, making this one of the best small business ideas for 2025.
Check out our guide for sustainable business ideas you can start in 2025.
Bakery
Consumers have become increasingly wary of ultra-processed foods (UPFs), and mass-produced bread is one of the biggest culprits. As a result, the demand for handcrafted baked goods is growing. Artisan bakeries can tap into this trend, highlighting their natural and locally sourced ingredients, traditional recipes and craftmanship.
If you have a talent for baking, you might just find that it makes for a rewarding and lucrative business opportunity in 2025.
Learn more about how to start a bakery in the UK.
Sustainable beauty
As the cost-of-living crisis eases, spending on beauty and personal care products is increasing, and the market is expected to reach £12.6 billion by 2028. However, new brands entering the market will need to show their sustainability credentials if they’re to earn a place in consumers’ make-up bags.
Nearly two-thirds of consumers think brands should be more transparent about the environmental impact of their products. If you’re starting a beauty business, it’s worth taking the time not only to ensure that your products are sustainable, but that you clearly communicate your values and practices.
Dupe beauty products
Gen Z consumers are careful about how they spend their cash, and they’re also skilled at finding creative ways around hefty price tags. So it’s no surprise that ‘dupe culture’ has taken off in a big way. This is where businesses replicate beauty products made by high-end brands for a fraction of the cost. Sixty-four percent of Gen Zs agree that using product dupes is a good way to save money; tapping into this trend could be a good way to make money.
Sleep aids
People are crying out for a better night’s sleep. Recent research shows that sleep is an aspect of people’s wellbeing that’s a high priority – and that their needs are going unmet. There’s a huge opportunity here for new brands to develop innovations to help a large, sleep-deprived audience. Whether you’re an aromatherapist or an app-builder, there are lots of ways to apply your skills to tackle the problem. With so many different factors affecting our sleep, there is a huge variety of potential solutions, making this one of the best small businesses to start.
Pop-up kitchens
Flexible pop-up kitchens have really come into their own in recent years, and the appetite for them continues to grow among consumers.
Offering a new level of immediacy and convenience, they have even come to surpass conventional restaurants in the eyes of some consumers. If you’re looking for small business ideas for the UK market, pop-up kitchens are tried and tested with an audience that’s hungry for more.
Food trucks
Food trucks are able to cater to events of all types and sizes, indoors and out. Being compact, adaptable and mobile means you can bring your products directly to your customers.
Learn more about how to start a food truck business and food truck start up costs.
Ghost kitchens
Ghost kitchens continue to thrive as we reach the mid-2020s. These pop-up kitchens act solely as online takeaways, so you don’t have to worry about the implications of in-house dining. It is a trend that’s here to stay, after people began to appreciate the convenience of having their favourite food whenever and wherever they like.
With Square Online Ordering, you can take orders on your free personalised website, and manage all of them directly from your Kitchen Display System.
Learn more about solutions for running a ghost kitchen with Square.
B2B Businesses
If your skill set lies in the digital world, then why not capitalise on the very movement you’re participating in? With a surge of new businesses entering the ring, these startups are going to need a little help, well, starting up. As a B2B business owner, you can provide personalised, tailored services that larger agencies perhaps cannot.
The world of employment is in a continuing state of evolution, so there will always be new needs that can be serviced by savvy small businesses. What’s more, as you can run these ventures in your own time and in your own home, they make for great low-cost business ideas.
Artificial intelligence consultancy
Artificial Intelligence (AI) is talked about so often that it can feel like it’s everywhere. But underneath the chatter, surprisingly few businesses have adopted this technology. In fact, 75% of SMEs are not using AI, despite many believing that it would increase productivity.
It’s clear that small businesses need help understanding the AI tools that are available, which are the right fit and how to implement them. If you can combine sector-specific experience with AI expertise, you could prove invaluable to the many businesses struggling to embrace AI.
Social media management
The presence and power of social media in marketing has grown exponentially. Now is the prime time for businesses of all sizes to take advantage and unlock the power of proper social media management.
Many businesses are now recognising the need to hire either freelance or in-house social media managers to manage their multiple channels – in a sector and role that didn’t exist even a decade ago. In fact, global social media ad spending is expected to show an annual growth rate of 4% from 2024 to 2028, with a projected market volume of US $256bn by 2028.
Web development
The majority of small businesses in the UK have a website, which needs continual optimisation in order to keep up with the competition. Web development is a vital tool in any business’s arsenal, as the majority of sales are led and made through online stores. If a site is slow, not very well optimised, and doesn’t have a seamless customer journey, sales fall flat and the business loses profit.
The business checklist that will make your idea into a reality
While it sounds simple, starting a business on your own can be a tough grind that requires patience. Before you get going, here are a few things that you need to have in order.
- Adequate industry training: In order to enter any industry successfully, it’s important to have extensive knowledge about the business and master the skills needed to be efficient.
- A well-thought-out business plan: Your business plan will be the framework of your idea and the more time you put into creating a business plan, the better off you’ll be. Make sure to detail all components including an executive summary, business description, market analysis, competitive analysis, product plan, business operations, employee and training summary and financial strategy. These will help you create well-defined goals and actionable steps for your business.
- Entrepreneurial drive: Not every industry expert is suited to be a business owner. The drive and motivation you need to go your own way aren’t often taught. Leadership skills, organisation and problem resolution are notable entrepreneurial traits that you should master before starting your own business.
- Powerful tools and business solutions: Trying many of these business ideas in 2025 can involve relatively low investment. Without bricks and mortar, the main things you need to consider are invoicing software and a card reader for accepting payments. And although you can do very well without a physical store, you will likely need an online store.
