How to start a business with no money in the UK

Many budding entrepreneurs in the UK believe that starting a business requires thousands of pounds. The truth? Some of the most successful companies began on a budget. What matters isn’t the size of our wallet, but the size of your determination and creativity.

If you’re wondering how to start a business with no money in the UK, here are eight practical, low-cost steps to turn your business idea into a reality.

1. Validate your idea for free

Before spending, make sure that people actually want what you’re offering. Validation reduces risk and shows you were to focus. Free ways to validate your business idea include:

• Google Trends: see if demand for your product or service is rising
• social media polls and forums: test interest with simple surveys on LinkedIn, Instagram, or Reddit
• direct conversations: ask potential customers about their pain points
• soft launches: offer a simple version of your service to test demand

2. Leverage your existing skills and knowledge

You may already have skills that people will pay for, such as:

Freelance platforms like Upwork or Fiverr can help you land your first clients.

You may even want to turn an existing hobby into an income stream – such as baking, crafts, or photography.

If your skills need sharpening, free learning platforms such as FutureLearn, Coursera, and government website resources can help you upskill without cost.

3. Use free and low-cost tools

Today, you can run most parts of your business online at almost no (or very little) cost.

1. Website: try a WordPress, Wix, or Shopify trial
2. Design: use Canva templates or try your hand at GIMP, a free Photoshop alternative
3. Project management: keep things running smoothly with Trello or Notion
4. Accounting: use software like Wave or FreeAgent

Tip: start with free tiers and only upgrade when your income grows

4. Build an online presence for free

Customers can’t find you if you’re invisible. Thankfully, marketing doesn’t need to cost a lot:

• social media – post on TikTok, Instagram, or LinkedIn to build an audience organically
• Google Business Profile – a free listing that boosts visibility in local searches
• blogging/YouTube – share your expertise to attract traffic and clients
• networking – join UK Facebook groups, LinkedIn communities, or attend free local events

5. Let your customers fund your growth

The best funding source could be your customers. Here are some strategies to consider:

• pre-sell products: offer early-bird discounts or pre-orders, which helps to gauge demand, secure early sales, and improve cash flow
• pilot programmes: test services with a handful of paying clients
• beta launches: start small, gather feedback, and learn from it

These approaches can help to make sure demand exists before you commit resources.

6. Legal and practical essentials in the UK

The legal side to starting your own business doesn’t have to be costly if you plan correctly. 

Business structure and options

• sole trader – free, simplest option
• limited company – from £50 to register with Companies House

Business bank account options

There are free options for small business owners with Starling or Monzo Business. Check out our full list of business bank account options to find what works for you.

Tax costs

• sole traders need to register for Self Assessment
• business owners who registered with Companies House will pay corporation tax

Insurance costs

Depending on your business, you may need to consider public liability, professional indemnity, or employers’ liability.

7. Explore funding options

If you do need a small financial push, the UK offers plenty of support:

• Government Start Up Loan Scheme – offers between £500 and £25,000 for business owners and includes mentoring
• grants: Innovate UK, The King’s Trust, Young Entrepreneur Fund
• crowdfunding: Kickstarter, Crowdfunder, Seedrs
• local enterprise partnerships: offering regional support and funding opportunities

Remember: not every business needs outside funding, but these options exist if you’re ready to scale.

Read more: Small business funding and investment: how to grow your business

8. Remember real success stories

Need some inspiration to keep going? Plenty of UK entrepreneurs started with nothing:

• Alan Sugar sold car aerials out of vans before building Amstrad
• Julian Hearn launched Huel from his kitchen with minimal investment

Starting a business with no money in the UK isn’t just possible – it’s increasingly common. With free tools, government support, and digital platforms, the barriers to business are lower than ever. The key is to start small, test your ideas, and let customers guide your growth.

FAQs: how to start a business with no money in the UK

Can I start a business with no money in the UK?

Yes. Many UK entrepreneurs start with free tools, side hustles, and small test offers. You can begin as a sole trader (free registration) and grow as you earn.

What business can I start with no money in the UK?

Popular no-cost business ideas include freelancing (writing, design, coding), tutoring, consulting, dropshipping, social media management, and online coaching.

How do I legally register as a business with no money?

Register as a sole trader for free with HMRC or set up a limited company with Companies House from £50. Free business bank accounts (like Starling or Monzo business) make the process affordable.

What free tools can help me start a business?

You can use WordPress or Wix for websites, Canva for design, and Trello or Notion for project management.

How can I market my business for free?

Build a presence on social media (TikTok, Instagram, LinkedIn), create a free Google Business Profile, and use blogging or YouTube to attract customers organically.

More guides for starting a business

• How to start a business in 9 steps
• What is bootstrapping in business? How to self-fund
• Sole trader vs limited company – what’s the difference?
• How to register as self-employed