Businesses to Start in the UK: Best Business Ideas for 2025

Starting a successful small business in the UK is a dream for many aspiring entrepreneurs. However, making the dream a reality requires careful planning, a deep understanding of consumer demand and awareness of competition within your chosen niche. If you're wondering what business to start in the UK, identifying high-demand and low-competition industries is crucial.

 To help you make an informed decision, SumUp has collected and analysed thousands of data points from the local business environment to determine the most profitable small businesses in the UK.

Our research covers 25 different business niches, including bakeries, beauty salons, florists and taxi services. 

How We Identified the Best Businesses to Start in the UK

We assessed consumer demand by analysing Google search volume for key terms like "bakeries near me" and "best hair salon near me." Then, we evaluated business supply by researching the number of registered businesses in each category across different UK cities.

The best UK industries to start a business were identified based on cities with high consumer demand but low business supply. This approach highlights locations where entrepreneurs have the greatest potential for success, helping them navigate competition and build a strong customer base.

The Best Business Ideas in the UK

When choosing the best business to start in the UK, selecting a high-demand and profitable industry gives you a significant advantage. If consumer interest outweighs the current market supply, your business will be better positioned to thrive.

Our research has found the top 10 most successful businesses to start in the UK. You can see the full ranking in the table below.

1. Carpet Cleaning: The Most Profitable Small Business in the UK

Topping the list of the UK's most in-demand local businesses, carpet cleaning is a highly lucrative opportunity for aspiring entrepreneurs. Our research calculated an overall supply vs demand index score of 6.50, indicating strong consumer demand with relatively low competition. 

For those considering what business to start in the UK, entering the carpet cleaning industry offers high profit potential. With steady demand from homeowners, landlords and businesses, this niche presents a strong opportunity to build a successful and profitable small business in the UK.

2. Beauty Salons: A Thriving Business Idea in the UK

Ranking second among the most profitable businesses in the UK, beauty salons continue to be an essential part of the high street. Our research found that this niche holds an overall supply vs demand index score of 6.33, demonstrating high consumer demand with low competition levels across the country.

If you're looking for a popular business idea in the UK, opening a beauty salon is a smart investment. From hair styling to skincare treatments, the UK beauty industry offers steady clientele and growth potential, making it one of the best businesses to start in the UK. Besides, SumUp has a host of tools that small merchants across the UK can use to start or grow a business.

In addition to helping entrepreneurs boost their sales with online stores and gift cards, we can also help them create professional invoices or manage their expenses with free online business accounts.

Discover SumUp Tools for Your Business

3. Event Planning: One of the Best Businesses in the UK

Ranking third on our list of the UK's most in-demand local businesses, event planning is a lucrative opportunity for entrepreneurs. After analysing supply and demand across the country, this niche received an overall supply vs demand index score of 6.15, indicating high consumer demand with low competition.

For those wondering what business to start in the UK, launching an event planning service presents strong growth potential. From weddings to corporate events and private parties, skilled planners are in demand, making this one of the most profitable businesses in the UK. Entrepreneurs entering this sector can capitalise on a booming industry while enjoying the flexibility of a low-overhead business model.

The Best Cities to Start the Most Profitable Small Business in the UK

1. Best Business to Start in Edinburgh: Open a Bakery for Sweet Success

SumUp's research reveals that Edinburgh is the best city in the UK to start a local business. The city's overall index score is 7.78, which puts it in the top spot as the city with the overall highest demand and lowest supply across all of the niches we analysed.

One niche that stands out as a great small business idea for entrepreneurs in Edinburgh is a high-street bakery.

There are just 36 bakeries in Edinburgh to cater to 9,000 average monthly Google searches for 'bakeries near me'. This gives the city a supply vs demand index score of 9.37 for this niche.

Other sectors with a promising supply vs demand score include bookshops and restaurants, which scored 9.33 and 9.17, respectively.

Edinburgh’s best business opportunities

2. Top Small Business Idea in Bristol: Hairdressing Leads the Way

With an overall city index score of 7.12, Bristol ranks as the second-best city in the UK to start a local business in terms of overall supply and demand across all niches.

The best business idea in Bristol is hairdressing. Our research found 110 hairdressers in Bristol. However, each month, an average of 5,400 searches are made for 'hairdressers near me'. This gives it a supply vs demand index of 8.58.

Other high-street industries that entrepreneurs might find success in are florists and bakeries, which we gave supply vs demand index scores of 8.05 and 8.03.

Bristol’s best business opportunities

3. Most In-Demand Business in Glasgow: Taxi Services on the Rise

 Glasgow secures third place on our list, boasting an overall city index score of 6.99 across all business niches. Entrepreneurs looking to start a business in Glasgow will find strong demand and low competition, particularly in the taxi service industry.

With a population of 591,620, the city has just 139 taxi companies. Meanwhile, 'taxi companies near me' receive 170 Google searches per month, highlighting a lucrative gap in the market. 

Other high-demand business opportunities in Glasgow include beauty salons (index score: 8.19) and travel agencies (index score: 8.18), making these some of the best businesses to start in the city.

Glasgow’s best business opportunities

4. Retail Shops: Retail Shops: Birmingham's Most In-Demand Business

The fourth best city in the UK to start a business is Birmingham, which has an overall city index score of 6.74.

Within this city specifically, the niche with the highest demand and lowest supply is for retail shops. There are 205 retail shops, and an average of 110 Google searches are made each month for 'retail shops near me', which gives it a supply vs demand index score of 9.01.

This is followed closely by event planners and electronic goods stores, which have supply vs demand indexes of 8.57 and 8.06, respectively. 

Birmingham’s best business opportunities

5. Best Business to Start in Norwich: Taxi Services

Fifth place in our ranking is Norwich, a city that earned itself a score of 6.61 across all sectors on our overall city index score.

Taxi companies have a local supply vs demand score of 8.91, making them the best business idea in this Norfolk city. Other niche industries that are in high demand but low supply in Norwich include carpet cleaning businesses, which have a supply vs demand index score of 8.46, and dog sitter businesses, which have a score of 8.25. 

Norwich’s Best Business Opportunities

6. High Demand for Beauty Salons in Manchester

Following Norwich in our ranking of the best cities in the UK to start a business, Manchester ranks in sixth place, having earned itself an overall city index score of 6.57.

Entrepreneurs considering opening a beauty salon will find their services in high demand in Manchester.

With just 93 beauty salons and 720 searches for 'beauty salon near me', the demand for this type of business outweighs the supply in Manchester, which gives it a supply vs demand index of 9.04 for the niche.

Other businesses with high supply vs demand index scores in Manchester include barbers (8.88) and retail shops (8.55).

Manchester’s best business opportunities

7. Leeds' Top Business Opportunities: Carpet Cleaning & Event Planning

The seventh best city in the UK to set up a business is Leeds. West Yorkshire has an overall city index score of 6.32, which means the level of demand outweighs supply in many of the industries we looked at.

In particular, carpet cleaning in Leeds has a supply vs demand index score of 8.41. Each month, 1,600 Google searches are made for 'carpet cleaning near me', yet there are just 150 businesses that provide carpet cleaning services.

For entrepreneurs, a market with high demand and low levels of competition can be an attractive opportunity to develop a strong market position in the city.

If carpet cleaning isn't of interest, event planners (8.08) and electrical goods stores (7.72) are two other small business ideas with similarly high supply vs index scores, indicating their high potential to be successful in Leeds.

Leeds’ best business opportunities

8. Aberdeen's Best Low-Competition Business: Cleaning Services

Aberdeen secures eighth place on our list of the best cities in the UK to start a business, making it the third Scottish city in the top 10.

While demand for cleaning businesses is generally low across the UK — averaging just 10 monthly searches for 'cleaning business near me' in most cities — Aberdeen stands out due to its limited supply. With fewer cleaning businesses than any other city in our analysis, it earns a strong supply vs demand index score of 7.85, presenting a prime opportunity for entrepreneurs.

Other promising niches in Aberdeen include moving companies (7.85) and carpet cleaning businesses (7.72), both offering strong demand and minimal competition. 

Aberdeen’s best business opportunities

9. Carpet Cleaning: Sheffield's Most In-Demand Businesses

Sheffield ranks ninth in our top 10 cities, with an overall city index score of 6.00.

Carpet cleaning is the most in-demand business niche in Sheffield. With only 186 carpet cleaning companies serving the city and an average of 1,300 monthly searches for 'carpet cleaning near me,' this sector has a strong supply vs demand index score of 6.95.

Entrepreneurs can also find promising opportunities in tutoring (6.61) and hairdressing (6.45), both of which have high demand and limited competition.

Sheffield’s best business opportunities

10. Plymouth's Top Business Opportunity: Taxi Services

Plymouth rounds out our top 10, earning an overall city index score of 5.92.

Entrepreneurs looking to start a business in Plymouth will find the greatest opportunity in the taxi industry. With only 71 taxi companies and an average of 90 monthly searches for 'taxi company near me,' this niche boasts a strong supply vs demand index score of 9.42, making it a low-competition market.

Other high-potential sectors include catering (7.57) and carpet cleaning (7.30), both offering strong demand with limited competition.

Plymouth’s best business opportunities

Other Factors Entrepreneurs Should Consider When Starting a New Business in the UK

The UK's small business market presents exciting opportunities for entrepreneurs. From our analysis, carpet cleaning, beauty salons, event planning and cleaning services are among the most profitable small businesses in the UK. These industries benefit from high demand and low competition, making them attractive options for aspiring business owners. 

Edinburgh, Bristol and Glasgow rank as the top three cities in the UK for launching a local business, offering a strong consumer base and favourable market conditions. While choosing the best business to start in the UK plays a crucial role in success, several other factors also influence long-term sustainability.

Here are the key steps entrepreneurs should take when setting up a new business:

• Put together a business plan: This will help you get prepared and will prove to be useful if you begin to approach investors. The plan should include an executive summary, a description of the business and a market analysis.

• Secure funding: You'll need to figure out how much money you need to set up your new business before you can explore your options for securing funding. It's a good idea to have a backup plan, too, just in case. Keep in mind that it could take at least 1-2 years for your business to break even, so you'll need enough cash to cover your expenses until then.

• Legal admin: Decide what kind of business you want your startup to be categorised as (limited company, sole trader, etc.), and then get registered with HMRC. From there, you'll need to take out employer liability insurance and decide how you're going to handle accounting (outsourcing or automating with a dedicated POS system).

• Marketing and branding: Pin down a name, concept and logo for your business. It's important to make sure that this all appeals to your target market and stands out from your competition.

Tools like SumUp's Point of Sale solution or card readers can reduce some of the everyday pressures associated with running a business. 

Learn More about SumUp Tools

Planning to Start a Business in the UK?

The UK offers opportunities for aspiring entrepreneurs, with high-demand, low-competition industries like carpet cleaning, beauty salons, event planning and floristry providing the best chances for success. Cities like Edinburgh, Bristol and Glasgow stand out as the top locations for launching a profitable small business. However, success isn't just about choosing the right niche — it also requires thorough planning, understanding local demand and navigating regulations.

Starting Local Businesses in the UK FAQs

What are the most profitable small businesses to start in the UK?

Some of the most in-demand small businesses in the UK include carpet cleaning services, beauty salons, event planning, cleaning businesses and florists. This is due to the high consumer demand and relatively low competition.

Which UK cities are the best for starting a small business?

Edinburgh, Bristol and Glasgow rank among the best UK cities for new businesses. These cities offer favourable supply vs demand conditions and strong customer interest across various industries.

What factors should I consider before launching a business in the UK?

When you want to start a business, the key considerations include market demand, competition levels and business location. You also need to check the regulatory requirements to ensure long-term sustainability and growth.