If you’ve just come into some money and are wanting to escape the 9-5, you may be wondering what sort of business can you start with £50k**. There are many viable opportunities out there for all kinds of people and more often than not it comes down to your passion and skills.**
What are you passionate about?
This is a key question to ask when determining what business to start. If you have a hobby or interest that you are passionate about, there may be a way to turn it into a business. For example, if you love baking cakes, starting a cake-making business from home could be a great option for you. Many small businesses need little overhead to begin with but an investment upfront can really help you move forward quicker.
What skills do you have?
Once you’ve considered your passions, think about the skills and experience that you have which could be relevant to starting your own business. Do you have experience in sales? Are you good at marketing? Do you have accounting or financial knowledge? All of these skills can be useful when setting up your own business.
Can you buy an existing business for £50k?
There are likely to be some options for businesses for sale under £50k, these may range from online businesses such as an e-commerce site or bricks and mortar cafe. Any business with premises will require a lot more upfront investment as you will likely be paying for the current business’s equipment, branding and goodwill. Often you will also be taking on clients of theirs if it is a service business.
Some examples of existing businesses that might be for sale under 50k include:
- A small e-commerce business
- A franchise of a larger company
- A local cafe or coffee shop
- A small professional services firm
- A regional taxi or transportation company
Start a Franchise
Whilst the likes of Mcdonalds and Dominos might be out of the question, there are opportunities to start your own franchise business for under £50k. A good place to start is Franchise Local, which offers a curated list of franchise opportunities under 50k.
The benefit to starting a franchise as opposed to your own company is
- The brand is already established, so you have an immediately recognisable name to trade off
- There are existing systems and processes in place which makes it easier to get started and scale up
- You will have access to advice and support from the franchisor
There are some tradeoffs to franchise businesses, however, such as less control over your business and higher fees. But if you’re looking for a turnkey solution to starting your own business, a franchise could be the way to go.
Use the £50k as cash flow for your first year
You may be working 9-5 right now and wondering if you can go it alone, the biggest issue is that the job security and risk of taking the leap are too high. If you have 50k to invest in a business, why not consider that 50k a way to handle your loss of salary over the first year or so. It may be enough time to build up your business and be back to where you started by the end of the 12 months.
Some businesses may take some time to build up their trade, for example, any website wanting to build up an audience can require time to build the website, promote it and get organic traffic via search engines. It’s important to set realistic expectations of how long this may take and always have a contingency if your goals are not met.
Search forums and ask experts who have built businesses from scratch how long it can take before the brand is known either locally or nationally.
Here are some examples of Businesses to Start for Under £50k
An Ecommerce Website
Had an idea for a product that you wanted to sell to all and sundry? An e-commerce website is a great place to sell your products.
One of the great benefits of an e-commerce site is that the overheads are low, all you need is a web server and platform to build your website on.
Some platforms to consider are:
- WordPress
- SquareSpace
- Shopify
If you are not familiar with web development or e-commerce sites then the latter two are the better options as they are WYSIWIG editors.
A Mobile Valeter
Starting a mobile valeting service is a great business to get into if you are looking to start up for under £50k. The overheads are relatively low as all you need is a vehicle, some specialist cleaning equipment and supplies.
There are numerous ways to market your services such as online directories, flyers and word of mouth. This type of business can be highly profitable as there is always demand for it and customers are often willing to pay premium prices for a good quality service.
A Food Van
If you are passionate about food, a mobile street van might be the perfect business for you. It’s not a requirement that you are a world-class chef, in fact, some of the best start-up food vans are from people who have never had formal training before. So long as you understand what you are doing and have the relevant food hygiene training you are good to go.
Consultancy
Have a relevant qualification or skill in a certain sector? Starting up as a consultant can be a great way to start. The overheads are low and you can use your money to invest in marketing and equipment.
This type of business can be highly profitable as there is always demand for it and customers are often willing to pay premium prices for expertise and knowledge, particularly in sectors that require formal qualifications.