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If you have ever dreamed of working for yourself, you are in good company. According to data from the Federation of Small Businesses, there are 5.5 million small businesses in the UK, accounting for a turnover worth around £2.4 trillion each year.
However, starting your own business is notoriously difficult. Entrepreneurs must rise to the challenge of raising capital, selecting a team, and building a viable and sustainable business model.
But often the most difficult thing is coming up with the right idea. So Forbes Advisor has compiled a list of 10 business opportunities that require relatively little upfront investment.
1. “Ghost” Kitchen
A “ghost” kitchen (also known as a “dark” kitchen or “cloud” kitchen) is a food business that operates solely on a delivery basis.
Rather than maintaining stores for customers to visit, these companies advertise online and through delivery services such as Deliveroo, Just Eat and Uber Eats.
However, these platforms charge sales fees, which often exceed 20%. There may also be initial installation costs.
The business model soared in popularity during the pandemic, when lockdown regulations banned eating out and demand for home delivery soared. According to data from Statista, there were around 750 ghost kitchens in the UK in 2020.
With proper food safety standards in place, you can start a ghost kitchen from your home, which keeps startup costs low.
However, before your first takeaway leaves your kitchen, you'll need to register as a food business with your local authority and get health and safety approval for your workspace.
2. Digital marketing agency
If you're good at communicating online, a digital marketing agency may be an opportunity for you.
These agencies provide online marketing services to other businesses, including branding, copywriting, search engine optimization, and social media marketing.
Starting your own small agency has minimal startup costs and allows you to work from anywhere with reliable internet access.
3. Affiliate Marketing
If you already have a website or blog, affiliate marketing can help you monetize it.
Affiliate marketing is the act of promoting products and services offered by other companies on your website. Every time someone follows a link or buys something from your company, you earn a commission.
The value of each commission varies and can be worth anywhere from 1% to 20% of the customer's purchase amount, depending on search volume and transaction value.
Setting up this type of business is fairly inexpensive. The only required purchase is the website. However, building a strong site that attracts affiliate partners can take time.
4.Dropshipping business
If you're constantly recommending products, dropshipping might be right for you.
In this business model, entrepreneurs curate a collection of products sold by third-party vendors and list them on a user-friendly website.
When a customer places an order, the dropshipper buys the product from the vendor of your choice, who then ships it directly to the customer.
Because dropshippers don't keep inventory in-house, they can offer a wide range of products and eliminate storage, packaging, and shipping hassles. Drop shippers make money by selling their products for a higher price than they purchased them for.
To get started, you need a website with e-commerce capabilities. Upfront costs tend to be lower because the customer orders and then purchases the product.
5. Website design
In an interconnected world, every organization needs an online presence. A web designer can help you achieve that.
Starting a web design business can be a good option for aspiring entrepreneurs with coding skills and a good eye for detail.
The initial cost is very low unless you hire another designer. All you need is a suitable computer and the web design software of your choice.
6. Freelance
If you want to start a business with virtually no start-up costs, freelancing could be the answer.
Whether you're a writer, graphic designer, financial advisor, photographer, or social media marketer, you can sell your services to clients all over the world.
What exactly you need to get started depends on your specialty. However, a good laptop, business cards, and an online portfolio of your work are a great place to start.
7. Event management company
Do you always find yourself the one organizing group activities and family vacations? Start an event management company and put your skills to good use economically.
Event managers plan everything from concerts and weddings to birthday parties and work functions on behalf of their clients, and work with them to plan their own events.
New businesses may start out planning events for individuals, local clubs, and schools before scaling up to planning events for businesses and large organizations.
8. Clothing business
Selling clothes can be a lucrative business. According to ONS data, the average UK household spends around £840 a year on new clothing.
If you love fashion and have a clear vision about your aesthetic, starting an apparel company may be the right business opportunity for you.
To get started, you need to invest in quality materials, packaging, and an e-commerce website or physical space to sell your products.
Renting an entire store floor can be expensive, so you might consider starting online and offering customers an in-person experience at local craft fairs and markets.
9. Photography and videography
A good photographer has an eye for detail and knows how to capture the moment. If this sounds like you, it might be worth turning this skill into a business.
Expect to be asked to do everything from professional headshots to weddings and pet portraits.
Depending on the equipment you already own, there may be no initial cost. You'll need a suitable camera, transportation, editing software, and a website to promote your services.
10. Class instruction
Sharing your skills with others, such as painting, yoga, or public speaking, can be a good business opportunity.
If you teach students one-on-one, initial costs are minimal. If you want to scale up, you can also hire a videographer or graphic designer to help you create ready-made courses that you can sell online.
How to identify new business opportunities
Whether you choose one of these ideas or go a different route, you need to scale your market and know your competitors before jumping in.
Here are some techniques to uncover the best business opportunities.
market analysis
Conducting a market analysis will help you understand whether your business idea is viable.
There is no one-size-fits-all approach to market research, but you can start by identifying key companies in your chosen field, talking to industry experts, and researching your potential audience.
SWOT analysis
This acronym stands for Strengths, Weaknesses, Opportunities, and Threats. Considering these four categories will help you understand how viable your new business idea is.
For example, if your analysis reveals new market trends, this could create an opportunity for your business to improve your product or reach new users.
question process
Asking questions about your business is a great way to improve your ideas, products, and services.
Questions include:
- Can you spend less and get the same results?
- Can you deliver your product or service faster?
- Can you make your products and services more accessible?
- Is there a more sustainable way to run your business?
Try to keep an open mind when asking these questions.
This process is suitable for both existing and virtual businesses.