Launching an online business has never been easier. You don’t need big upfront funding, and serious tech skills aren’t required. With the flexibility to set your own schedule and call the shots, this is a real chance to be your own boss.
With just a little clever strategy, you can reach a huge audience right from the start. Whether you’re after a gentle side income or dreaming of a worldwide e-commerce empire, the possibilities are endless.
With that, here’s our guide to getting your online business off the ground.
Why start an online business?
Building an online business is a great chance to do something rewarding — in more ways than one.
To start with the obvious, the entry barrier is often very low. Online ventures tend to come with minimal start-up costs compared to a bricks-and-mortar business, saving money on rent, utilities, and other associated expenses. It’s a way to get a foot in the business door without reaching deep into your wallet.
For those who already have a physical shop, going online offers a great way to increase revenue and reach new audiences.
You also have flexibility. As your customer base grows, you can expand operations without the limits of physical space. You can shape your online business to fit exactly what you need. Whether you’re starting small with a niche product or dreaming big with a diverse range, you can scale up as you go.
You don’t need to be a tech wizard. With so many user-friendly platforms and handy tools available, it’s possible to set up shop with only limited tech skills. Good website builders provide templates that make it easy to launch a professional-looking website in minutes — and manage stock and update pages daily.
If you prefer instant access to customers, you might explore marketplaces like Etsy, eBay, and others.
And there’s never been a better time to start. In fact, the UK now boasts the world’s third largest e-commerce market after China and the US.
Online sales account for more than a third of the total retail market in the UK, in spite of what’s going on with the economy. Online sales even increased by 36% last year. By 2025, the total domestic revenue from e-commerce is predicted to be worth £230 billion. So, if you’ve got something to share with the world, now may be the time to make your mark.
And did we mention you can do it all from home in your pyjamas?
Come up with that business idea
So you’ve decided to start an online business. Exciting! The first step is to define your business idea — turning that spark of inspiration into a clear, actionable concept. There are a few key things to think about to help shape your vision into something tangible and viable.
First, consider the scale and commitment of your venture. Are you looking to start a side-gig to complement your lifestyle and income, or aiming for a full-time business that’ll become your main focus?
Next, think about the core of your business: the product or service you want to offer. This is where your passion meets market demand. Is there something you’re particularly interested in or have expertise in? Defining your niche is crucial.
Pinpoint a specific market segment. Instead of trying to serve everyone, focus on a group with shared interests. Tailor your products or services to their preferences. This approach helps your business stand out and builds stronger connections with loyal customers. Look at your passions and any gaps in the market to identify your niche effectively.
Finally, consider how well the idea aligns with your skills and experience. Will you need extra training or partnerships? A business that fits your strengths and knowledge is more likely to succeed.
Choose your business model
What type of entrepreneur are you? Think about what you love doing and what you’re good at. Do you want to manage stock yourself, or would you prefer a low-overhead model like dropshipping?
Your choice should match both your strengths and how you want to show up in the market.
Once you’ve thought about that, it’s time to look at business models — basically, the way your business operates and who you’ll sell to. We can break this down into two parts:
1. Core market type
➤ Business-to-Business (B2B): when businesses sell products or services to other businesses. When it comes to wholesale, a B2B might act as intermediary in a supply chain, purchasing goods in bulk from manufacturers and selling them to retailers or other businesses.
➤ Business-to-Consumer (B2C): where businesses sell direct to consumers. This is the biggest e-commerce business model there is — whenever we make an online purchase as an individual customer, we’re engaged in the B2C model.
➤ Consumer-to-Consumer (C2C): when consumers sell goods or services to each other through an intermediary platform. Casual and occasional selling on eBay or Facebook Marketplace would fall into this category.
➤ Consumer-to-Business (C2B): when consumers provide services to businesses. Switching around the B2C idea, this one is a bit oddly named, as it typically refers to freelancers selling to businesses. For example, getting paid to upload photography to Shutterstock.
2. Sales and fulfilment approach
➤ Wholesale (B2B Sales, Bulk Distributor)
In online wholesale, you work between manufacturers and retail businesses, offering products in large quantities at lower prices. The key to success is developing strong relationships with reliable suppliers and understanding the market demands of your customers. You’ll need a grasp of inventory management as you’ll be handling and shipping products to various locations.
➤ Dropshipping (Order Fulfilment or Inventory-less Retail)
Dropshipping is a choice for those who prefer not to hold onto the stock themselves (or don’t have the means to). Here, when a customer places an order, your role is to have the product shipped directly from the supplier to them. You don’t handle the product directly and, as such, you don’t need the storage space. Dropshipping is appealing for those looking to enter the e-commerce space without a significant upfront investment in inventory.
➤ Custom Made-to-Order (Personalised, Customisable Products)
Are you interested in offering products customised to your customer’s specifications? This could include personalised gifts, custom clothing, or made-to-order furniture. A subcategory of this is Print on Demand (POD), where you sell personalise-able items like t-shirts or mugs, made bespoke for each order.
➤ Handmade (Artisan, Craft, Bespoke)
Are you a skilled artist or craftsperson? If you enjoy creating products by hand, emphasising craftsmanship and uniqueness, Handmade is the category for you.
➤ Used Items
If you have a passion for sustainability and giving new life to preloved items, consider selling vintage clothing, refurbished electronics, or antique furniture.
➤ Reseller (Arbitrage, Retailer, Stockist)
As a reseller, you’ll purchase products from suppliers or wholesalers and sell them to customers. If you’re interested in buying products at a lower price in one market and selling them at a higher price in another, consider arbitrage.
➤ Private Label (White Label, Brand Owner, Exclusive Branding)
If branding products manufactured by others as your own sounds appealing, then private labelling is an option.
➤ Affiliate Marketing (Referral Selling, Commission-Based Selling)
Do you have a knack for promoting products? In affiliate marketing, you’ll earn a commission for each sale made through your referral, often using digital platforms.
➤ Subscription Services (Box Services, Recurring Revenue Model)
If you’re interested in offering products or services on a subscription basis, providing recurring deliveries or access, consider this model.
➤ Digital Products (E-Goods, Virtual Products, Downloadable Content)
If you’re inclined towards digital products, like eBooks, software, digital art, or online courses, this category might be for you.
For inspiration and examples of different approaches, see: Inspiring Stories from Self-Starters
Do your market research
Once your business idea is in place, it’s time to do a bit of market research. Look at trends where you might succeed, and spot any challenges ahead. This research will form the backbone of your business plan, helping you shape your product or service to match what customers want.
Start by identifying your customers. Who would find value in what you’re offering, and why would they pay for it? Understand their needs, preferences, and spending habits, and make sure your offer aligns with their expectations. Think about:
☐ The age bracket of your ideal customers
☐ The size of your target market
☐ Their location
☐ Their purchasing power (typical budget)
☐ Your competition — and how unique the solution is that you’re offering
Ask yourself: does your product or service solve a real problem or make life easier? To spot gaps in the market, look for unmet needs or areas where demand is higher than supply. Online surveys can help gather data, and carefully studying competitors will give insight into what works and what you could do differently. Look for opportunities to offer something special, valuable, and unique.
See also: I’m a Solopreneur. What Products Do I Need to Get My Business Online?
Buy the domain name
A domain name consists of a main name together with its extension — “.net” or “.com”, for example.
When starting an online business, it’s so important to choose a combination that works. This is your digital address, but it also forms a huge part of your brand identity. That URL is likely to be your first impression on the web – it’s how people discover, remember, and interact with your online presence. Whether formal and prestigious, catchy or quirky, it needs to be memorable and unique.
Choosing the right domain name can have a big impact on trust and credibility. “.co.uk” or “.uk” domains tend to be more effective for British ventures. Having said that, different extensions from “.abc” to “.xyz” can do the trick in an eye-catching and budget-friendly way.
You might even pair your name with the extension in a clever way. For example: by choosing a .guru domain if you’re a yoga instructor, .design for your graphics portfolio, or .ninja for your karate academy.
A unique domain can even help businesses rank higher on search engines like Google, making them more discoverable to potential customers.
For more, check out our guides: Names That Click: How to Choose the Right Domain Name and What is a Top-Level Domain (TLD)?
123 Reg offers hundreds domain extensions to suit any purpose, from the traditional “.com’s” to more inventive options. 123 Reg sells some of the UK’s cheapest domains and many choices are surprisingly cheap!
Write the business plan
Once you’ve settled on your business idea, the next step is putting together a solid business plan. Start with a short summary of your idea, mission, and goals. There are plenty of resources to help you get going — The Office for National Statistics and Think With Google Research Tools, and The Prince’s Trust Business Plan pack are all useful. The British Business Bank also has guides aimed at UK start-ups.
Plan how you’ll market and sell, showing how your business will reach customers and make money. A good business plan isn’t just for you — it’s also a handy tool if you’re seeking partners, investors, or loans.
Keep it realistic. Set goals that are challenging but achievable, based on the resources you have. This makes your plan more credible and actionable.
Choose your online platform
Now for the fun part: choosing where to sell your products or services online.
The platform you pick can make a big difference to how visible your business is and how well it performs. Each option has pros and cons, so it’s important to match the choice to your needs.
Let’s look at the three main options for selling online:
➤ 1. A drag-n-drop builder
➤ 2. Managed WordPress
➤ 3. Existing Marketplaces
➤ 4. E-commerce ‘CMS’
1. Website Builder
A website builder is one of the easiest ways to get started. It’s great for creating an attractive, unique website without needing to code. Even if you know a bit about web design, a builder can make life easier and speed up the setup.
Many website builders include hosting as part of their service. That means they provide the server space where your website will be stored and made accessible to visitors on the internet.
123 Reg’s Website Builder makes things easy with an intuitive interface and dozens of pre-built templates at your disposal. From there, you can customise the look and feel of your website by adding your own images, videos, colour scheme and more.
You can change the colours, add your own images or videos, or use copyright-free images if you don’t have your own.
Drag-and-drop tools let you move things around and set up pages how you like. You can even add your own HTML if you want extra control. You can have a professional online store running in just a few minutes.
Online Store Builder is an enhanced version of Website Builder, with more advanced features for selling online.
Learn more about Website Builder and Online Store Builder by 123 Reg
123 Reg gives you everything you need to get started: a domain name, an email address to match, secure protection with a free SSL Certificate, plus the website hosting bit itself. You can customise product offerings and receive various payment methods depending on the package you choose.
Added to that helpful customer service and a 14-day money-back guarantee if you’re not happy, it’s a simple and budget-friendly way to get your business online.
2. Managed WordPress
WordPress is one of the most popular ways to build websites, and for good reason. It gives you lots of control with thousands of themes and plugins. Managed WordPress hosting from 123 Reg takes care of the tech side, like updates, backups, and security, so you can focus on your content and running the business.
With Managed WordPress hosting from 123 Reg, much of the technical side is taken care of for you, including updates, backups, and security. That means you can focus on creating content and running your business, rather than worrying about maintaining your site. Whether you want to run a blog, portfolio, online shop, or all three, WordPress gives you the flexibility to do so.
It’s a great choice if you want to grow over time. You can start small and add features later, like booking tools, membership areas, or a shop with WooCommerce. WordPress gives you the room to grow without having to start again from scratch.
Learn more about 123 Reg Managed WordPress Hosting
3. Existing Marketplaces
You can also sell through big marketplaces like Amazon, eBay, or Etsy, or even Facebook and Instagram. These platforms give instant access to buyers and handle a lot of the selling steps for you.
The downside is that there’s a lot of competition, and you have limited control over how your brand looks. Fees are another thing to watch. For example, Amazon’s Individual plan costs £0.75 per unit sold, while the Professional plan is £25 per month (plus referral and fulfilment fees). Fulfilment by Amazon (FBA) can cover storage and shipping, charging only for the services you use.
4. E-Commerce “CMS”
E-commerce content management systems (CMS) are software platforms that help businesses run and organise online stores. Popular options include Shopify and Adobe Commerce (formerly Magento). These tools are mainly aimed at larger companies.
Big businesses like Shopify or Adobe Commerce because they offer lots of control, customisation, and detailed inventory management. They work well for selling large quantities and managing worldwide shipping. Tesla, Heinz, and Nestle use Shopify, while Nike, Coca Cola, and Ford use Adobe Commerce.
CMS platforms are useful when a company has lots of unique or bespoke products that need careful tracking. For example, if you were selling thousands of made-to-order bicycles, custom furniture, or bespoke computers, a CMS would help manage multiple product numbers and options efficiently.
The downsides are cost and complexity. CMS platforms can be expensive due to fees and customisation needs, and they usually require professional technical skills or a team to run. For most small businesses or side-hustlers, this level of setup may be too much.
For more, check out: How do I Make an E-Commerce Website?
Get funding
There are a lot of options when it comes to money matters. First and foremost, the government offers a Start Up Loan between £500 to £25,000, charged at a fixed interest rate of 6% per year. Many UK banks offer loans to new and small businesses. If you wish to apply for a loan, lay out a clear funding request with honest and realistic financial predictions. Be sure to understand the interest rates and potential penalties. Interest will depend on creditworthiness, the amount borrowed, and the loan term, but generally range from around 3% to 7%. Check out How to get a business loan for tips.
Another route would be to attract investors. Clearly state your money needs with a well-structured pitch, with a clear “this is what’s in it for you”. By showing a clear grasp of your financial needs and predictions, you can boost your chances of getting the backing you need.
Crowdfunding has emerged as a viable option for start-ups and entrepreneurs. In 2023, the average funding pot for rewards-based (as opposed to charitable) crowdfunding in the UK was approximately £12k. It may be possible to cover at least the initial expenses and launch costs in this way. Of course, you’ll need to create a compelling pitch that clearly communicates your business idea, goals, and the benefits of throwing money into the hat.
Register your business
It’s very tempting to say “you’ve bought a domain, now you’re in business!”. Alas, it’s not quite that simple. Once you’ve made the big decision to start your own company, there’s the legal stuff to consider. Register your business according to the structure you’ve chosen.
Needless to say, it’s vital to run your business legally — whether you’re going it alone as a sole trader, forming a partnership, or establishing a limited company. If you’re a sole trader or self-employed, you’ll need to report your earnings and pay income tax through a Self Assessment tax return to HM Revenue and Customs (HMRC). You’ll need to charge VAT on your sales and report it to HMRC. Keep detailed records of your income and expenses, as this information is crucial for accurate tax reporting.
If you’re selling products through marketplaces like Amazon or Etsy, you’ll normally operate as a sole trader, without needing to create any formal company. Nevertheless, be sure to check with Companies House and all the good resources on the gov.uk website for all the official advice on this and all other aspects of starting a business in the UK.
These steps help you establish your business’s legal status, understand your financial obligations, and make sure you’re operating your small venture or side hustle within the UK’s legal framework. Choose the setup that fits your goals.
Set up shop
If you’ve gone with a website builder or WordPress rather than a marketplace, the next step is your site design. Think of your landing page as your shop window. A clean, simple layout that shows off your main products or services will set the tone right away.
Your theme is like the mood of your shop. Fun and quirky brands suit bright, playful designs. Luxury products work better with sleek, minimalist styles. Whatever you choose, make sure it feels like you.
Keep things easy to use. Clear menus, category labels, and a search bar help customers find what they need fast. Add strong calls-to-action so visitors know where to click next.
Make sure your site works on mobile as well as desktop. Most online shopping now happens on phones, so responsive design is a must. Use sharp images, engaging text, and keep pages quick to load. Slow sites turn people away and can even hurt your search ranking.
See also: Why You Need a Mobile-Friendly Website (and How to Get One)
Set up professional email with your domain
A professional email address that matches your domain makes your business look credible — and it helps people take you seriously. Using a generic Gmail or Yahoo account just doesn’t have the same impact. Plus, it keeps your messages organised and easy to manage as your business grows.
With Microsoft 365 Email, you get a business email plus handy tools like Word, Excel, PowerPoint, and Teams. That means you can create documents, collaborate with your team, and manage your work all in one place.
For more, check out: Why Every Business Needs a Professional Email Address
Start taking payments
Starting your online business means setting up a way to take payments — not just debit or credit cards, but also digital wallets, coupons, and others. When picking a payment gateway, you’ll need to think about both fees and security.
A merchant account is a special bank account that lets your business accept credit and debit card payments. To get one, apply with a bank or a payment processor. They’ll check your business, like how much you sell and what you offer, to decide if they can work with you. Once you have it, this account holds money from card sales before it goes to your business account. This is important for the trustworthiness of your business.
123 Reg’s Website Builder features PayPal integration as standard. With a full Website Builder Online Store, you can sell anywhere in the world with a full e-commerce platform, accepting credit cards, debit cards, PayPal, Apple Pay or Google Pay. There’s full Stock Control for managing inventory and you can even add flexible shipping rates so that shipping rates from major carriers are automatically included in your pricing.
Manage your accounts
Start by opening a separate business bank account to keep personal and business cash apart, making it easier to track. The UK government offers a scheme called Small Business Rates Relief — you may be eligible if your small business only occupies one property.
There’s a whole host of free accounting apps out there. These tools make it easier to keep track of spending, handle invoices, and get ready for tax returns. Especially for small businesses, they save a lot of time and effort that would otherwise go into handling money matters. That means you can focus more on growing the business rather than on the paperwork.
Accounting apps for small business include QuickBooks, Zoho Books, Quickfile, FreeAgent, Wave Accounting, GnuCash, and VT Cashbook. Many of these are free, or mostly-free with limitations. Zoho Books is free up to the first 1,000 invoices a year, for example. Hopefully, that’ll be enough to kick off your new business in 2024.
And finally: Keep building that online brand
With your domain name chosen and your website now published, it’s time to get more people talking about the brand.
☑︎ Set up social media channels
Platforms like Facebook and Instagram are great places to show off your products or services. Out of 57 million social media users in the UK, Facebook leads with 49 million users, followed by Instagram with 37.7 million. Meta now integrates these two platforms through Meta Business Suite, letting you manage posts, ads, and even products if you’re selling online.
Connecting with your audience matters as much as what you sell. Consumers are more likely to spend when a brand engages with them, and 80% of buyers are more likely to purchase when they receive personalised experiences, and 80% of consumers are more likely to purchase when they receive personalised experiences.
☑︎ Use video and blogs
YouTube is ideal for small business promotion. Product demos, tutorials, behind-the-scenes clips, or Shorts can all grab attention fast. Users are four times more likely to turn to YouTube for brand info than other platforms. TikTok also continues to grow, with users spending over 27 hours per month on the platform — especially popular with younger audiences.
Blogging is another way to engage your audience and improve visibility. Regular posts can generate 94% more links to your site. Share your story, build a community, and help your content rank higher on search engines.
For more, see our article: Blogging A-Z – Your Glossary Guide For Success
☑︎ Collect and show reviews
Positive reviews build credibility. In 2022, 98% of people read online reviews for local businesses, with 87% using Google to check them. Encourage happy customers to leave feedback on your site, social media, or third-party review platforms. Reviews can influence decisions and strengthen your online reputation.
☑︎ Optimise for search engines
Search engine optimisation (SEO) helps your content appear higher in search results. Use relevant keywords and create content that answers your audience’s needs — without overdoing it. Good SEO drives traffic and establishes your business as trustworthy. A free tool to try is Google Keyword Planner.
See also: Local SEO in 10 – How to Get My Business Found Online
Wrapping up (and shipping off)
Starting an online business is exciting and rewarding. Find a niche you’re good at, know your audience and plan how to reach them. Set goals you can stick to, balance it with other work if it’s a side project and keep an eye on money.
Website builders make it easy to get going without tech skills. Add a business email that matches your domain and use free tools to grow your brand and connect with people. With the right approach, turning an idea into a business has never been easier.
