The key things you'll need to start a business

In simple terms, you can start some businesses with very little and in some cases just yourself but in most cases you'll need some basics, and these are:

A bank account

You can use your personal but it's often much better to have a dedicated business one, this way you can keep your business and personal transactions seperate.

Many business banks can be opened for free, such as Tide which we've also partnered with to offer you £50 free when you sign up using code: FOUNDERPASS (you’ll need to deposit £50 within the first 3 months to qualify for the £50 cashback).

Remember it isn't essential to start a business account but

A limited company

Although you can start a business as a sole-trader for many you'll want to register as a limited company (see setting up a limited company cost), this will give you the best benefits such as appearing as a full limited business, limited liability and other factors. This can be done from just £12 with companies house or you can do it for free with companies like Tide* check out our Tide review if you're wanting some additional information about Tide business and opening an account.

Forming a company will give you a company name (that you can choose) and will also register you for corporations’ tax, bear it mind there are some legal responsibilities that you'll need to complete each year as a company director.

A domain name and website

Our first tip would be to use our Google Workspace promo code to get 20% off the Standard plan for setting up your emails so you have yourname@yourbusiness.co.uk for example, you'll also get all the apps that Google have from Docs, Sheets, Meet, Calendar and so forth which are fantastic for your business.

In todays world most businesses will have a domain and a website, this can be done for very little money with a .co.uk (UK focused domain) costing from just £1.99 a year and web hosting costing under £10 a month. There are many companies that let you create websites easily yourself using their software such as Wix or if you want something a little more advanced then check out Webflow. Along with websites that help you make websites easily there are tools like Canva that can let you create logos, so theres no need to initially spend hundreds of pounds on a logo, start with a free one and if your business grows then invest in a new one.

You can also set up an email address so you can have 'name@yourcompany.co.uk' which not only looks very professional but can let you keep all your business emails all in one place.

Essential pieces of equipment, tools and supplies

Depending on your business, there likely will be some key pieces of equipment, tools or supplies that you'll need, for example if you're planning on starting as a mobile barber you'll need things like hair clippers and scissors as well as products like hair gel, shampoo etc.

Top tip is to be lean, by this we mean only buy what you definitely need and essentials, you can always buy more when you see the business is working.

Yourself

You are the key to your business, with just the above you'll be able to go out and sell your services or products. Be prepared for no's and it won't be easy but every no means you're closer to a yes. Persistence is key and get feedback at every point from your customers and from other people.

Key things to consider when choosing the type of business to start

Here's the real question, there are thousands of different types of business you can start, so which one is right for you and which one is most likely to give you the best chance of success?

Well we narrow this down to three main points for you to consider:

1. Pick a business you are interested in

Trust us when we say that if you pick a business that you have little to no interest in, you will likely not succeed! Sounds a little abrupt but the reasoning behind this is that a business takes a lot of you time (and we mean a lot!). Think about the business you want to start in and make sure you have a certain level of interest in it as you'll often be working on it day and night. If the business doesn't interest you it'll be far harder to motivate yourself to work on it.

2. Think about your current skills and utilise them

If you have skills or knowledge that you have previously acquired from another job or elsewhere then consider how you can utilise these into a new business. Often people find success if they start a job based on knowledge and skills they have and can work on rather than from something they have zero to little knowledge of. Having said that don't rule this out as it's not always the case.

3. You'll have to find self motivation

Once you start a business you won't have set times like you do when you have a job, nor will you have a boss who tells you what needs doing and is there to check on you. You'll rely on your own self motivation to work the hours you need, set out what needs doing and to check that you've actually done it.

If you're not naturally someone who finds motivating themselves then it could worth finding someone who can keep you accountable, this works best when they run a business and can also help you in many other ways from giving you valuable feedback to ideas. Set a time once a week whether it's a call, a zoom, email or in person meet where you set out your goals for the week as well as look back on the previous week and check if you've done everything you said. You can also do the same for them and this type of account ability is a fantastic way to keep you motivated.

Additional things to keep in mind include:

• Be lean (use money wisely)
• Focus on an area you know about
• Offer services cheaper to get valuable feedback
• Networking can help massively
• It won't be easy
• Hard work and determination is needed

What sort of businesses can I start with £1,000?

Okay so let's get down to one of the core parts when starting a business and that is the sort of business you want to create, it won't only be those cheap businesses that everyone already knows about but also ones that you may have thought weren't available.

Digital services

One of the fastest and easiest businesses to start is in the area of online services, these include things such as graphic design, copywriting, virtual assistant, social media management and so on.

If you've got knowledge of any of these then you can get going but if you haven't then it's worth learning about them and the best way is via online videos, you'll find an abundance of videos teaching you how to do these on YouTube as well as on the likes of TikTok and Instagram. Be wary of those trying to sell courses which cost money though as these can sometimes be more expensive and not as useful as they first appear.

Once you've got some knowledge then why not offer you services for free to a local business and use that as a test to see how you do, get feedback and as a case study to get paying customers.

An example of this is to start a social media agency, where you handle the social media for a local business. You can use tools such as Canva to design posts, write captions yourself and interact with the businesses social media users, taking the time and hassle of this away from the business and letting you succeed. Companies often will pay anything from £250 up to £1000's per month for these types of services so with just 5 or so clients you'll be quickly on your way to making a successful business.

Physical services

Think about offering things such as dog walking, photography, gardening, car washing etc and then think about how you can offer this as a service that someone will pay for. With many of these types of services you'll be offering something that others can do themselves such as dog walking but they don't have time and so they are happy to pay someone else to do it for them.

Buying and Selling

If you enjoy hunting for a bargain or browsing eBay then you may want to consider setting up a business which does these things, the basic premise is to buy low and sell high and take a nice profit. This can be hard work but if done correctly you'll be able to find a niche that interests you and has profit in it. Consider browsing things like Facebook marketplace as well as going to car boots and then upcycling or taking time to take good photos to sell them online to a wider audience. This will increase you chances of making a larger profit but bear in mind there are often costs to sell online and don't forget postage costs!

A food business

Everyone eats and most people love food and if you have the skills to create this whether it's cooking or baking then why not consider setting this up as a business, there are many successful small businesses that make everything from donuts to breakfast cereals.

Tutoring

If you have a good knowledge of a certain subject then why not look to offer your services teaching this to people, you can charge by the hour and if demand is too much you could look to hire more tutors to work on your behalf

Personal trainer

If you're into your fitness then why not consider becoming a personal trainer, you can train people, make them fitness as well as diet plans and overall help others to get into better shape and meet there goals.

Airbnb/short term letting

Although you may be thinking surely I need more than £1,000 to start this and the answer is no, you can be clever and find friends or family who have an additional property or contact those people offering a property on a normal letting basis and offer to manage it as an Airbnb. This of course requires some learning from your side into how the Airbnb and short term letting world works but can be a lucrative way to start in the area.

Social media influencer

The dream job I hear you say, well don't be fooled by the name and everything you see online, it takes a lot of time to grow an audience on social media in most cases, producing the content, interacting with your followers and more before you can think of starting to make money. Of course sometimes some people will grow quickly and start to make money faster but typically those who do make a living from social take years to get to a point of making a decent income.

Blogging and writing

Are you a good writer? If so then you could consider offering your writing services, many companies will pay well for content that is research and well written. You can start by looking on sites like Upwork and Fiverr and see what others are offering and at what price and then you can try offering your services at a similar if not lower cost at first.

If your writing skills are exceptional then why not look into ghost writing, this is where you write on behalf of others, so for example you could be writing a book on behalf of someone else.

An alternative is to go into blogging, this is where you write for yourself on your own website and eventually when you have built the traffic up to a good level then monetise it with adverts, affiliate links and more.

Translation

If you speak more than one language then why consider offering your services as a translator, you can offer this to both individuals who may need your service as well as companies and businesses looking for documents to be translated or to be present on calls to interpret.

Drone photography business

If you're into your photography you'll likely know that the general photography space is pretty competitive, whether its for weddings, portraits, food or anything else, a lot of people and businesses offer this service. This is why you should look into drone photography as a business, this is still a growing market and with the right bit of kit you can offer this to many different companies and businesses.

Drone photography is often required by commercial companies to check on properties that are large for any issues, by utility companies to check the status of things like electricity pylons, offshore companies who need to check for maintenance issues and much more. Be aware that you may need licenses to fly certain drones in certain places so you'll need to invest in these as well as the kit itself.

Rent a dog

Sounds strange, but there is a rise in people wanting to walk and borrow dogs, this is mainly due to them not being to have a dog for reasons such as living in a flat, a partner who is allergic and so on but they still love dogs and want to walk one. You could look into a business that borrows dogs and rents them out to others. The costs to set this up should be less than £1,000 but you'll have to consider all the legal and insurance side of this type of business.

Travel planning business

Love travelling as well as a good planner, then why not combine the two and offer a service to book dream holidays for people, you can make itineraries, book flights and hotels as well as excursions, this will combine two things you are good at and love to make a business that you could love.

Ways to make your £1,000 business budget last longer

If your budget to start a business is around £1,000 then you need to make every penny count, so we've gathered some tips and tricks to make sure your money is spent wisely and it lasts as long as possible, thus giving you the best chance to succeed at your business.

Save money when you setup a limited company?

You may be worried that setting up a limited company seems not only daunting but expensive to do, but this really isn't the case, the cost to register as a limited company with HMRC is just £12 and you can even take advantage of offers which combine opening a business bank account with opening a limited company to make this cost zero. Companies such as Tide business offer you a free limited company when you use our Tide referral codes and if you sign up with them for a business account plus if you deposit £50 into the account they give you £50 cashback into the account, which is a great option for people wanting to open a limited company and also in need of a banking solution.

Always check for discounts and startup credits

Use websites like FounderPass to get free startup credits and discounts on any business software you need, from website hosting to email marketing software to business banking and much more. Sites like this will put all of the discounts, deals and free credits in one place for you to take advantage of.

Think small to begin with

When you start you may have ambitions to take over the world but you'll begin with a few customers so make sure you give them the best experience possible, if they love your business they will tell others and this is how you will grow in the beginning, remember world of mouth is one of the best methods of marketing and its free!

Learn, learn and learn!

Education is very important, you need to know as much as possible about your industry, market and customers, there are so many resources and so much information available online so make the most of it.

Follow industry leaders

There will be some people in your market or industry who are very good at what they do, so follow them on social media whether this is Linkedin, Twitter, Facebook or Instagram and you'll find they often give golden pieces of information that can be fantastic for your business.

Get networking

You'll be shocked at how much you'll get from networking, not just from meeting others who run businesses to discuss but also from introductions to useful business contacts to being recommended to customers. Just remember when you go into networking events not to try and sell your services, simply explain what you do, ask others what they do and see if you can help them too. Naturally if people like you and your business then they will mention you to others who may need your services.

What are the problems of starting a business with £1,000?

Of course one of the biggest drawbacks of starting a business with a small amount of capital is that you may not be able to purchase certain items which may be useful, whether this is a piece of machinery, certain marketing materials, more stock and so on. This may give you a slight disadvantage at the start but remember as you grow and sales grow you can reinvest your profits into these purchases.

If you are in need of additional capital then it could be worth exploring other options, we've recently done an in-depth Swoopfunding review which can help give you an idea of other options including grants and other funding methods.

What are the benefits to starting businesses with £1,000

You may be thinking that there aren't many but there are in fact quite a few advantages of starting a business with a smaller amount of money, these include:

• Less risk - simply put, you're investing less money so if the business fails you'll have lost less money
• You'll be more savvy - as your capital is less to invest, you'll have to be savvy when it comes to how you spend it
• Rewards can be big - If you succeed then you'll feel great as you've done it with less money than others

What are the next steps for starting the business

So you're thinking you're ready for the next steps and are keen to start a business, if so then you should do the following

1. Make a list of your ideas - Write down all of the business ideas you've got
2. Write the pros and cons - Note these all down for each business idea you've got
3. Research the market - Do as much market research into each so you can get an idea if there is a demand for your business idea
4. Get a second opinion - Ask people in business ideally what they think of your business idea, they'll be more likely to tell you the truth, friends and family may be more bias to tell you its a good idea even if they don't think so or don't know
5. Consider opening a business bank account and look into using a LinkedIn premium promo code to get Premium for free for a few months so you can network.

1. Start it - the only real way you'll know if it works is to test it out and get going.

Final thoughts

Although some may say that £1,000 isn't enough to start a business, in most cases it is plenty, as long as you can be resourceful, dedicate time and be motivated we think you'll have the best chance of success!

Need some more inspiration and ideas? Check out our make money from home uk guide which has over 60 different business ideas for you to consider.

We wish you the best of luck with your new business venture and don't forget to check out the range of startup credits you can get from us.