Many budding entrepreneurs are under the impression that you need a huge amount of capital to start any business. This thought process may have something to do with that age-old saying of ‘it takes money to make money’.
But this is simply not true. While having an impressive supply of capital would be an obvious advantage to kickstarting your business ventures, it is not necessary to start a successful business. What is more important when it comes to starting a business is a solid business plan and a business idea that has been thoroughly researched.
So don’t let lack of capital hold you back. In this day and age, £1,000 can go a long way!
Can I start a business with £1,000?
Did you know that many people in the UK are self-employed in some way or another” Whether they’re a freelancer, run their own company, or have a side hustle, the majority of these self-employed people did not have much to start out with. In fact, many of them probably started their businesses with less than £1,000.
£1,000 is actually more than enough to get you started with many different business models. In fact, a survey by Shell showed that more than a quarter of all business owners started their businesses with less than £1,000.
What kind of business can I start with £1,000?
The UK offers budding entrepreneurs hundreds of exciting business opportunities that don’t cost a fortune to start. The type of business you create should depend on what skills you can bring to the company and your service or product demand.
Some business ideas that don’t require much capital and that have the potential to do well include:
Sell things online
Selling things online is one of the simplest and easiest ways to make money and start a small business. There is a high demand for unique, handmade items, so if you can knit, crochet, paint, or draw, you may be able to sell your creations online. You can use sites, such as Etsy, which won’t even require you to create a website.
If handmade items aren’t really your thing, you could always source handmade items from others to sell or look at importing items and selling them in the UK.
Offer digital services
Whether it is copywriting, graphic design, or social media marketing, there is a huge demand for digital services at the moment. Use your capital to take a short course in a digital service that you are most inclined to. Your capital should also be used to market your services online, as anyone offering digital marketing services should have a strong digital presence. You could also outsource other digital services and take a commission if you want to provide comprehensive services.
If you’re an animal lover, pet-related services could be great for you, and this is also a type of business that really does not require a lot of capital to get going. Simply begin advertising yourself as a dog-walker or pet-sitter and go from there.
With so many kids attending school online, there is a huge demand for tutoring. Starting a tutoring business does not require much capital as there are very few resources involved. Simply start advertising your services. You could also find other tutors and advertise their services under your company name.
You could do lessons in person or online, and you needn’t stick to school subjects. If you’re great at piano, you could teach piano online!
Plants became exceptionally popular over lockdown, and there are many successful online plant businesses run from home. If you are very into plants, you could easily start a business by propagating cuttings of plants you already own and investing in marketing material. Shipping plants within the UK is actually surprisingly easy.
If you are passionate about baking or cooking, the chances are that you already have most of the equipment necessary to start a baking or cooking business. Write a list of additional supplies and equipment that would make it easier to cook and bake in big batches, and prioritise which ones are most important. The next step is to perfect a few recipes and start advertising your services.
Businesses that can be done from home that involve products and services that are advertised online are usually very affordable to start. One of the biggest business expenses is rent, so if you can avoid that, you’ll have many options when it comes to starting a business with £1,000 or less.
What should I prioritise as business purchases if I only have £1,000 to start my business?
So, you only have £1,000 to set up your business” How do you spend it wisely and ensure that you are prioritising your capital funds budget correctly” Here are some of the priority expenses when it comes to setting up your business.
Register your company
In the UK, it is a legal requirement to register your company with Companies House. When you do this, you will also be signed up for corporations’ tax. For just £12, you’ll receive a ‘certificate of incorporation’ that shows your company number. Registration is a simple and easy process, and once it is completed, your company officially exists!
Get a logo and other marketing material
A logo is often the first impression that potential customers will get of your business, so it is worth investing in a good logo design or a marketing design package that will help get you off the ground when marketing your business and getting your name out there. Keep in mind that the average start-up company in the UK spends around £150 to £200 on their logo design. Ensure that you use a reputable designer, and this cost will be well worth it.
Invest in a website
No matter what industry you’re in, it’s always a good idea to have a website so that potential customers can find out everything they need to know about your business from a single source. While sometimes it may not be necessary, as you can sell items on sites like eBay and Etsy, having a dedicated website always gives a professional impression. The cost of websites varies greatly, depending on how complex you need your site to be.
If you decide not to invest in a website in the beginning, ensure that your business is active on various social media platforms.
Get your supplies
Each business will have a very different list of business supplies. Write down everything that you may need to get you started in terms of supplies and products, and then list these supplies in order of priority. If there is anything you can’t afford, try to do without it until you can afford it.
What should I keep in mind if I am starting a business with not much capital?
There are thousands of people that start businesses with very little capital, so remember that you can do it to! Some things that you should keep in mind when starting a business with very little capital include:
The biggest thing to keep in mind is that it is okay to start small. You can start a business with just one customer. Having to start small should never keep you back from not starting at all, as even the most important journeys begin with a single step.
Use the free tools available to you
In this day and age, you have so many free tools available to you, especially when it comes to online marketing and social media marketing. Make use of these free tools and ensure that you are active on all relevant social platforms to ensure that as many potential clients know about your brand as possible.
Educate yourself! There are many free resources online that will allow you to expand your business knowledge so that when your business does begin making money you will know what to do with it. As an entrepreneur, you should never stop learning. Whether it’s taking a free online course, or doing market research, ensure that you’re always expanding your knowledge.
Connect with others in your niche
Take the time to connect with other businesses and organisations within your particular niche. This way, you will hear about potential opportunities and be on top of the latest industry news. It’s also always good to know what your competitors are up to.
Are there any benefits to starting a business with £1,000 or less?
Although many people start businesses with £1,000 or less, it is still considered a relatively small amount to invest in a budding business. And less capital usually means fewer opportunities and fewer benefits, right” Well, actually, there are quite a few benefits to starting out with less, including:
- Lower risk – at the end of the day, even if this business venture doesn’t quite work out how you’ve planned, you would have only lost £1,000 or less.
- Resourcefulness – starting with less forces you to become resourceful and perhaps develop skills that you didn’t even know you had.
- Make smart purchases – with little capital; you are less likely to spend money on items that will be of no use to you.
- More reward – when you do begin to make profits and see some success, it will be all the sweeter and extremely rewarding.
- Make back capital expenditure faster – the lower your capital amount is, the faster you are likely to make your capital expenditure back.
It is not so much about how much capital you have, as it is about how you spend your capital and your outlook regarding your business.
Use What You Have
One of the biggest pieces of advice that we can give you when it comes to starting a business with £1,000 or less is to capitalise on what you already have. Take a good, hard look at what your skills and assets are before deciding what type of business you want to start. There are five main questions you should ask yourself, which include:
- What skills do you have – make a list of all the skills that you feel you possess, no matter how random they may seem.
- What experience do you have – what previous jobs have you done And what did you learn while doing them?
- What knowledge do you have – is there any particular topic that you know that you’re an expert on” It doesn’t need to be what you went to university for, although be sure to include degrees and diplomas if you have any?
- What resources do you have access to” – what do you already own that could be advantageous to your business” Do you have a car or any other form of transport” Do you have an oven” Do you have a garden” Do you have a sound system” These items may seem random, but there are many ways in which each could contribute to your business.
- Who do you know” – do you know any influential or successful people that offer assistance in any way, shape or form to your business venture
Write down a list of the assets you can bring to the table. Do they point towards a specific business model” Don’t let the assets that are sitting right in front of you go to waste. Even if they are not monetary, they could still contribute greatly to the success of your business venture!
What if I have less than £1,000 and still want to start a business?
Where there is a will, there is a way! While you may have limited options of what types of business you can start, there are definitely still many options available to you when it comes to starting a business with well under £1,000. The best thing to do is just start small. You don’t need a website in the very beginning if you can’t afford it. Just get your basic supplies and start putting your name out there.
Keep in mind that many of the most successful business people and entrepreneurs that you see today started with very little money in their pockets.