15 most profitable businesses to start in the UK (2026)
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If you’ve been itching to launch your own business, we’re here to tell you one thing: it’s time to stop dreaming and start doing!
Whether you’re looking to escape the 9am – 5pm grind, create a weekend side hustle, or simply want to become your own boss, there are plenty of opportunities out there for ambitious entrepreneurs.
But let’s be honest: you don’t just want to start a business. You want to start a profitable business. To help, we’ve picked 15 of the most profitable businesses to start in 2026. Some of these businesses need specialist skills, others just need a laptop and a healthy dose of determination.
If you’re ready to start your business empire, let’s dive in.
Key takeaways
- Low overheads and high margins are the secret to profitability
- You don’t need to compete with supermarkets or banks to run a very profitable business
- The most profitable business ideas often scale easily, have consistent demand, and don’t require a lot of upfront investment
- Understanding your industry’s typical profit margins helps you set realistic expectations and plan for growth
How to start a profitable business
Let’s start with a quick reality check: there’s no recipe or formula for guaranteed business profitability.
But the types of businesses that tend to make the most money share a few key patterns and traits: lower costs, higher margins, the ability to scale, and strong demand.
Let’s look at each of these traits in more detail:
- Lower costs: These types of businesses include digital services, consultancies, and online businesses. They often have minimal overheads (no offices or inventory) compared to other businesses like restaurants or retail shops
- Higher margins: This means you keep a greater portion of your sales as profit. Coaching, design, or marketing are all businesses that sell time and expertise — you don’t have to pay to create or ship a physical product. It costs you less to provide your services, so more of your fee goes into your pocket.
- Scalability: The sweet spot for any business is when you can serve more customers without increasing your costs. Software businesses, online courses, and subscription services all tick the scalability box because you build something once, but sell it many times
- Demand: It’s one thing to have a great business idea, but it won’t fly if nobody wants it. Look for gaps in the market, what problem you can solve, and high-growth industries. Sectors like health and wellness, tech services, and eco-friendly products are all seeing strong demand right now
When you’re thinking about how to start a successful business, consider which of these factors you can score highly on.
What’s the most profitable business in the UK?
If we’re talking pure revenue, supermarkets and banks tend to top the UK’s profitability charts. No surprises there, really.
This is backed by recent research from SumUp, which says the most high-growth sectors in the UK right now are retail, financial services and pharmaceuticals. Just look at the numbers:
- In 2024/2025, Tesco generated £3.1 billion in profit
- In 2026, the UK banking industry is worth £136 billion
- The UK pharmaceuticals market is projected to grow from USD $48.45 billion (roughly £35.95 billion) in 2025 to USD $92.21 billion (roughly £68.42 billion) by 2032
Interestingly, these big businesses make money through volume and scale, not necessarily through high profit margins. In fact, many supermarkets operate on razor-thin margins of around 1–3%.
For smaller businesses and startups, profitability often comes from specialisation, not size. A niche consultancy, a well-run property business, or a digital service can all achieve much higher profit margins than the UK’s biggest companies.
Remember, you’re aiming for a business model that keeps as much as it makes as possible. So don’t compare yourself to players like Tesco — they’re operating in a totally different world.
15 profitable businesses to start in the UK
There’s plenty of opportunity to build a profitable business in lots of different sectors.
Here are 15 business ideas with strong profit potential — each with its own perks, challenges, and requirements. We’ve focused on businesses that combine low startup costs, scalability, and healthy margins. Maybe one of them could work for you?
1. Business consultancy
Let’s start with the most obvious, but often most profitable, business idea.
If you’ve got expertise in a specific field like marketing, HR, operations, or finance, you could become a consultant and charge premium rates for your time. Your overheads are low (you often just need a laptop and a phone) and there’s potential for high profit margins.
Consultants typically charge anywhere from £50 to £500+ per hour. It depends on your specialism and experience. But once you’ve built a reputation, you can scale your business by offering group workshops, online courses, or retainer packages.
What you need: Proven experience in your field and a network of potential clients. No specialist equipment required, but credibility and testimonials are very important.
Startup cost: Low. Mainly marketing and a professional website.
2. Digital marketing
Every business needs customers. But how to get them?
That’s where you, the digital marketing expert, come in. Whether you specialise in SEO, social media, email campaigns, or paid ads, there’s a huge demand for digital marketing professionals.
According to recent industry reports, digital marketing professionals can often achieve profit margins of 20–30%, especially once they’ve built a steady client base. You can even start solo and scale your business by hiring freelancers or building a remote team.
What you need: Strong understanding of digital marketing channels, tools like Google Ads or social platforms, and the ability to prove results.
Startup cost: Low to medium. Mostly software subscriptions and your own marketing activity to attract clients.
3. Online courses and coaching
If you’ve got a skill that’s in demand, you could start a successful online course or coaching programme.
Your skill could be anything from fitness coaching and business skills to languages and creative hobbies. Either way, selling your expertise online through online courses or coaching is a high-profit business to start because you can create the content once and sell it repeatedly.
Research from Statista shows the global e-learning market is expected to reach over USD $400 billion in 2026, and UK consumers are increasingly investing in personal development.
What you need: Expertise in a subject area, a platform to host your content (like Teachable or Kajabi), and marketing skills to reach your audience.
Startup cost: Low. Mainly platform fees and some basic video equipment if you don’t have it already.
4. Accountancy and bookkeeping services
Here’s a fact of life: business owners need accountants. But most business owners would rather spend time on their business idea than managing their books.
If you’re qualified (or willing to get qualified), accountancy and bookkeeping services are consistently in demand and can turn a healthy profit.
Bookkeepers typically charge £20–£50 per hour, while qualified accountants can charge significantly more. It’s a scalable business too, because you can serve clients remotely and build a portfolio of regular retainer clients that you help every month.
What you need: AAT qualification for bookkeeping, or ACCA/ACA for full accountancy services. Accounting software knowledge is essential.
Startup cost: Low to medium. Qualifications (if needed) and accounting software subscriptions.
5. Property rental and management
Property remains one of the most reliable ways to build wealth in the UK.
Whether you’re renting out residential properties, holiday lets, or commercial spaces, rental income can provide steady, passive cash flow.
Buy-to-let landlords can expect rental yields (the annual rental income from a property) of around 4–8%, depending on location, as research from Hamptons International shows.
If you prefer the idea of property management, where you manage properties for other landlords, it has lower upfront cost requirements but good profit potential.
What you need: Existing property (or the money to put down a deposit on a property), understanding of landlord regulations, and ideally some property management experience.
Startup cost: It depends. High if you want to buy a property. Less if you already own property. Low for property management services.
6. Web design and development
Every business needs a website, but not every business owner knows how to build one.
If you’ve got design and coding skills, web development is a very profitable business with low overheads and high demand.
Freelance web designers can charge anywhere from £500 for a basic site to £10,000+ for complex builds. Once you’ve got a portfolio and client base, you can scale your web design business by offering clients ongoing maintenance packages or specialising in high-growth areas like e-commerce.
What you need: Design skills (alongside tools like Figma and the Adobe Creative Cloud), coding knowledge (like HTML, CSS, and JavaScript), or WordPress expertise. A strong portfolio is essential.
Startup cost: Low. Just a laptop and design software.
7. Cleaning services
It might not sound glamorous, but cleaning is one of the most consistently profitable businesses you can start.
Demand is steady because homes and offices always need cleaning. Plus, startup costs are low, and you can scale by hiring a team.
Domestic cleaners typically charge £12–£25 per hour, while commercial cleaning contracts present more opportunities.
British Cleaning Council data shows that the UK cleaning, hygiene, and waste industry is worth almost £70 billion and growing steadily. So, if you’re reliable, good with clients, and ready to get your hands dirty (literally), a cleaning business could be for you.
What you need: Cleaning supplies, reliable transport, and public liability insurance (very important because you’ll be entering people’s homes or offices). No formal qualifications required, though some clients prefer you to have DBS checks, which start at £21.50.
Startup cost: Low. Cleaning equipment and marketing.
8. E-commerce and dropshipping
Whether you’re creating your own products, reselling, or dropshipping, e-commerce offers business owners serious profit potential.
If you start a dropshipping business, you can achieve profit margins up to 45%, depending on the products you sell and how effective your marketing is.
The key is finding products with strong demand but not much competition. At the moment, specific tech accessories, health and wellness items, and high-end home goods can achieve margins of 30-50%. This is because there’s less competition in these areas, and consumers perceive these as high-value items.
What you need: An e-commerce platform (popular options include Shopify and WooCommerce), suppliers, and strong digital marketing skills.
Startup cost: Low to medium. You’ll need to pay platform fees, have a strong marketing budget, and initial inventory (if you’re not dropshipping).
9. Personal training and fitness coaching
If you’re a fitness guru and love helping others, you could consider offering one-to-one training, group classes, or online coaching.
Personal training is a high-growth and rewarding business. According to UK Active, the fitness industry contributes over £4 billion to the UK economy, and there’s a growing demand for fitness services from price-conscious consumers. Perfect for PT or fitness coaches who can offer park sessions and other lower-cost alternatives to the gym.
Personal trainers charge anywhere from £30 to £100+ per session, and many build subscription-based income through online programmes.
What you need: Level 3 Personal Training qualification (at a minimum), public liability insurance, and ideally some business or marketing skills.
Startup cost: Low to medium. Just qualifications, insurance, and potentially gym space rental.
10. Graphic design and creative services
From logos to social media content, businesses of all sizes need design work.
If you’re creative and comfortable using design software, freelance graphic design offers flexibility, low overheads, and strong earning potential.
Designers can charge per project (£200–£5,000+, depending on the complexity or scope) or offer retainer packages to clients who need ongoing work.
Once you’ve built a reputation, you’ve got a good chance of getting referrals and repeat work. For example, you might develop visual identity guidelines for a client, and then implement these guidelines across your client’s website and communications on an ongoing basis.
What you need: Design skills, software like the Adobe Creative Cloud, and a portfolio showcasing your best work.
Startup cost: Low. You don’t need much more than your chosen software subscription and a laptop.
11. Virtual assistant (VA) services
As more businesses go remote, VAs are in high demand.
VAs handle admin tasks like email management, meeting schedules, customer service, and social media, with the ultimate goal of freeing up business owners to focus on other things.
VAs typically charge £15–£50 per hour, depending on skills and the tasks involved. It’s a flexible business you can run from anywhere, and you can scale it by building your own VA agency with remote employees.
What you need: Strong organisational skills, familiarity with tools like Google Workspace and project management software, and good communication.
Startup cost: Very low. Just a laptop and a reliable internet connection.
12. Tutoring and education services
There’s always demand for learning: parents invest heavily in their children’s education, while adult learners are increasingly seeking skills development (especially as AI and tech change the job market).
If you’ve got a specialist subject and like teaching, you could tutor school subjects like maths and English. Or you could teach languages or offer business-related professional training to adults.
Tutoring is a stable and profitable business. Private tutors charge £20–£70+ per hour depending on the subject and level. And these days, you don’t even have to leave your house. With online platforms like Zoom, you can reach students worldwide.
What you need: Expertise in your subject area, teaching or tutoring experience, and patience. Some subjects may require qualifications, and you will need a DBS check if you want to work with children.
Startup cost: Very low. Mainly marketing and online platform subscriptions.
13. Photography and videography
From weddings to corporate events, product shots to social media content, visual content is everywhere. And businesses and individuals are willing to pay for high-quality photography and video.
If you’ve got an eye for composition and know your way around a camera, photography and videography can be highly profitable.
Wedding photographers can charge £1,000–£3,000+ per event, while corporate videographers often work with businesses on a retainer.
Equipment is an upfront investment, and it can be pricey at first. But once you’ve got it, you don’t usually need to pay for much else, and your profit margins can be strong.
What you need: Professional camera equipment, editing software (common options include Lightroom and Premiere Pro), and a high-quality portfolio website.
Startup cost: Medium to high. Cameras, lenses, lighting and equipment can be expensive.
14. Content writing and copywriting
Whether it’s blog posts, website copy, emails, or social media content, every business needs great words.
If you can write clearly and persuasively, and know how to follow brand guidelines, freelance content and copywriting offers very good profit potential.
Content writers charge anywhere from £50 to £500+ per article, and more experienced copywriters can earn between £350-£600 per day, depending on the copy task, sector, and client.
It’s a good idea to build your copy skills around a niche like tech, finance, or health so you can charge higher rates in return for your specific industry experience.
What you need: Strong writing skills, research ability, and a portfolio of published work. No formal qualifications are required, but experience definitely helps.
Startup cost: Very low. You just need a laptop and an internet connection.
15. IT support and tech services
Big businesses usually employ big IT agencies. But small businesses can’t always afford full-time IT staff, presenting a good opportunity for tech-savvy business minds.
If you’re comfortable troubleshooting day-to-day IT issues, dealing with cybersecurity, and know how to set up the cloud, you could be onto a winning business idea.
IT consultants and support providers can charge anywhere between £30 and £100+ per hour, and many clients prefer retainer agreements for ongoing support, which creates reliable recurring income for your business.
What you need: Technical knowledge across common business software and hardware, problem-solving skills, and ideally some recognised IT certifications like AWS and CompTIA A+.
Startup cost: Low. Mainly tools, software, and marketing.
What’s a reasonable profit margin for a small business?
Your profit margin is the percentage of revenue that remains after all your business costs are covered.
According to research from Sage, the average small business profit margin in the UK sits between 7–10%. But this number can swing dramatically depending on what you’re selling and how you operate.
Understanding what’s typical for your sector and your experience level helps you set realistic goals and know whether you’re on track to make a profit. Here are some realistic profit expectations based on industry benchmarks:
- Retail businesses: 2–5%. These businesses shift high volumes, but margins are reduced by inventory costs, rent, and competition. Supermarkets often operate at the lower end, while specialist retailers can achieve slightly better margins through higher prices
- Restaurants and hospitality: 3–8%. But this is heavily dependent on your business’s location, menu pricing, and efficiency. Food costs, wages, and wastage all eat into profits. UKHospitality reports that many restaurants struggle with rising costs, making tight margin control essential
- Professional services: 15–50%. This industry has some of the highest profit margins because you’re selling expertise rather than products. Low overheads mean more revenue and more profit. Senior consultants and specialists typically achieve margins at the higher end.
- Digital services: 20–40%. These are scalable business models with minimal costs, which help to drive strong profit margins for many digital content creators. Once you’ve built systems and processes, you can serve more clients without increasing expenses
- E-commerce: 10–30%. Profit margins vary depending on what products you sell, supplier costs, and your marketing budget. Dropshipping models can hit margins of 20–30%, while businesses that store a lot of inventory usually see margins of 10–20% because of warehousing costs
- Cleaning services: 10–30%. Low startup costs and steady demand create healthy profit margins across the industry. Commercial contracts often give you better profitability than domestic cleaning because of the larger job sizes
- Creative services: 25–45%. After any initial equipment investment, ongoing costs are minimal. Your time and talent are the main inputs, which can generate a strong profit
The key takeaway here is: service-based businesses generally enjoy higher profit margins than product-based ones.
But that doesn’t mean retail or hospitality can’t be profitable — you just need to be smarter about controlling costs and how you manage your business operations.
Ways to increase your business profits
Once your business is up and running, growing your profits naturally becomes the priority. Here are some proven strategies to help improve your business’s bottom line:
Reduce your overhead costs
Take a hard look at your fixed expenses — rent, software subscriptions, accounting, and utilities. Could you negotiate better rates, switch suppliers, or go remote to cut office costs? Even small savings add up over time.
Tip: A smart business current account with built-in automated accounting can save you both time and money on bookkeeping costs
Increase your prices
It’s common for business owners to undercharge, especially in the early days. Which is totally understandable when you’re finding your way.
If you haven’t raised your prices in a while, or if your service quality has improved, it might be time for a price increase. Often, customers won’t question reasonable price rises, especially if you’re delivering more value, and if you tell them in advance.
Improve your marketing and customer retention
It’s cheaper to keep an existing customer than to win a new one.
Try to focus on building relationships, offering customers loyalty incentives, and staying top-of-mind through email marketing or social media. At the same time, see how you can improve your marketing activities to attract higher-value customers who are willing to pay more for your services.
Automate your operations
Remember: time is money! Automate repetitive tasks where you can, like invoicing, scheduling, and email follow-ups, so you can focus on activities that help to increase your revenue.
CRM systems like Hubspot, and project management platforms like Monday can transform your day-to-day and generally make your life easier.
Upsell and cross-sell
Once you’ve landed a customer, think about what else you can offer them, and how you could charge for it.
For example, a web designer could offer ongoing website maintenance on retainer, a cleaner could add deep-cleaning or special weekend services, and a personal trainer could sell nutrition plans.
How long does it take for a business to become profitable?
Most experts agree that it takes 1–3 years for a small business to become consistently profitable.
That might sound like a frustratingly long time but really, your profitability timeline depends on your business model, startup costs, and how quickly you can attract paying customers.
Ultimately, you need to plan for this reality. Remember, every business is different. What might work for someone else might not work for you, and that’s OK.
Don’t panic if you’re not making huge profits your first year — focus on building a solid customer base, refining your offering, and managing your cash flow carefully.
Ready to start your company?
Starting a profitable business is absolutely achievable with the right idea, planning, and determination.
Whether you’re drawn to consultancy, e-commerce, property, or the creative services, the opportunities are out there — and they’re waiting for you!
However, we know that the first step towards making your new business official can often feel like the hardest.
We’re here to help with all of that. From smart business accounting to tools that help you with invoicing and tax, we’ve got your back.
If you’re ready to set up a limited company, our team can take care of the company registration process for you. It’s quick, easy, and your new business will be up and running within 24 hours.
Before you register, check if your ideal business name is available with our company name availability checker. If it’s free, you’re good to go.
In the meantime, best of luck — and here’s to your new money maker.
FAQs
What is the most profitable business?
There’s no single answer to this question. It depends on factors like your skills, market demand, and how well you control costs. Generally, service-based businesses like consultancy, digital marketing, and coaching tend to have higher profit margins because they don’t need huge overheads. Industries like finance, tech, and property show strong profitability, but success ultimately comes down to a business’s market fit.
What is profitability in business?
Profitability means your business is making more money than it’s spending. It’s the difference between your total revenue and your total costs — what’s left over is your profit. A profitable business can sustain itself, pay its owners, and reinvest in growth. It’s not just about turnover (how much you sell), but about how efficiently you operate and how much you keep at the end of the day.
What’s the profit margin for a restaurant business?
Restaurant profit margins are typically quite tight — usually between 3–8%. This is because restaurants have high fixed costs (like rent, staff and utilities) and variable costs (like ingredients and wastage). Fine dining and well-managed eateries can push towards the higher end, while cafes and quick-service spots often sit around 5%.
How profitable is a cleaning business in the UK?
Cleaning businesses can be very profitable, with margins typically ranging from 10–30%. Startup costs are low, demand is steady, and you can scale by hiring staff to take on more clients. Domestic cleaning services charge around £12–£25 per hour, while commercial contracts can be more lucrative.
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