Most big businesses have start-up costs that reach into the millions. Thankfully, you won’t need to take out an enormous loan to get your start as a sole trader. There are many successful and lucrative businesses that you can start for less than £100.
The main kind of businesses that require very little start-up cash are service-based. Rather than making and selling products, service-based businesses involve offering your skills to buyers. Since you won’t need to constantly replenish your stock or materials to make products, the start-up costs for service-based businesses are relatively low.
If you’re thinking of starting a service-based business, all you’ll need to pay for are the tools you require to provide your service, and marketing to get your business’s name out there among potential clients. You’ll also need some cash for limited company formation, but there are simple tips and tricks to lower these costs.
All you’ll need to wash cars is a jet washer, some sponges,brushes, specialised soap and waxes. You can find all this at hardware stores like B&Q or Screwfix. Go door to door in your neighbourhood (prioritise the homes that have dirty cars on their driveway) and ask if they’d like their car washed for a small fee. Build your business by seeking out contracts with local car dealerships to wash the cars on their lot.
If you’ve got a green thumb, share this skill with others by beautifying their gardens. You’ll need to pay for a lawn mower, shears, trowels, shovels, and a good pair of overalls and gloves. Once again, go door to door in your local area and find gardens that could do with some cleaning up. If your clients would like flowers or vegetables planted, you can charge them a premium to purchase these supplies.
There’s a good chance that many people in your community need things delivered, but don’t have the time to run about all over town. For this business start-up, all you’ll need to invest in is a bike, and you can deliver everything from documents and groceries to gifts and homeware.
If you have a desirable skill like drawing or speaking another language, you can offer tutoring online. All you’ll need is a Zoom/Skype account and you can start teaching clients from all over the world. Sharing knowledge costs absolutely nothing and you won’t even need to leave your house, but you will need to learn some teaching techniques to keep your lessons interesting.
Freelancing sites like Fiverr and UpWork are perfect to market yourself and find global clients. You’ll need a sellable skill to start freelancing. For example, if you have excellent organisational/planning skills and love time management, you can market yourself as a virtual assistant. If you speak another language, why not freelance as a translator or interpreter? This business start-up is made even easier because you won’t even need your own website.
If you love baking, you can sell your creations online or in your local community. This business will require a little more in terms of start-up costs because you’ll need to buy the ingredients. You might need to register with your local council and have your kitchen inspected for food safety. But, customers love cakes, so you’re sure to sell out of your most popular items every time.
You don’t have to spend too much of your business start-up budget on advertising. You can get your business set up with a page on Google, or list your business in directories like Yelp and Yell for free.
Save some of your budget to design and print professional flyers that advertise your business to the local community. Or, why not pay a small fee to other local businesses to place an ad in their shop window? You can even partner with other sole traders to advertise each others’ businesses.
If your business is operating online, you’ll need a sleek website to convince customers to buy your services. Thankfully, a ‘.co.uk’ domain name will only cost around £5 a year. Depending on the site host you choose, you’ll be able to build your website for free.
If you’re the only person involved in your business start-up, then you’re considered a sole trader. This means limited company formation for your business will cost absolutely nothing. However, if you do want to register with Companies House, it only costs £12 to do so online. Or, you can use a limited company formation agent to register your company, such as Icon Offices. They will register for you for £5.99.
Another way agents like Icon Offices can help is by providing you with a virtual office. If you don’t want to advertise your home address as your business address, just rent a virtual office. These services are a little more costly, but worth it in the long run to protect your privacy and give your business a professional look. For virtual office rentals from Icon Offices, the price is usually around 99p a week.
To look as professional as possible, your business will also need a dedicated phone number. An easy way to give your business its own number is by renting a Voice over Internet Protocol number, also known as a VoIP number. Since VoIP numbers aren’t connected through networks but instead through the internet, as long as you have an internet connection you can receive and make calls. Try and opt for a virtual landline number, as these look better for businesses. Typically, you can rent a VoIP number for anywhere between £2 and £10 a month.
A successful business start-up doesn’t take mountains of cash. With a good idea and dedication, you can find lots of clients in your local community. As a sole trader, you’ll also be able to save on other costs.
Limited company formation doesn’t cost anything for sole traders. But, if you want to register with Companies House, use a formation agent for even cheaper prices. Agents like Icon Offices can even offer you a virtual office to protect your privacy.
Finally, a virtual landline number is the best choice for a business phone number. By renting a VoIP number, you won’t need to pay a huge phone bill, and you can take calls from almost anywhere.
Setting up a business doesn’t have to be expensive or complicated. There are lots of ways you can lower costs for your service-based business and spend less than £100. So, think of an idea, use your business savvy to trim your costs, and go for it. Good luck!
