How to Start an Online Business in the UK
An online business can start with one service, a few products or something you already make well. Begin by deciding what you want to sell and who is likely to buy it. You can work through the other choices a step at a time.
Updated: 7 September 2026.
1. Decide what you will offer
Describe what the customer will get, how much it will cost and how they will buy it. For example, a gardener might offer a two-hour garden tidy, while a maker might start with a small range of gifts.
Talk to a few people who might buy from you. Ask what they need and what they already use. A first booking or small order can help you learn before you spend heavily on a website or stock.
2. Work out your starting costs and monthly bills
List what you need to get started: equipment or stock, a website, insurance and any professional help. Then list the regular costs, including software, delivery, payment fees and advertising.
Think about the time each order or job will take as well as the money you spend. Work out roughly how many sales you would need to cover your costs.
3. Choose how to set up the business
Many people start as a sole trader or set up a limited company. These have different tax and reporting responsibilities. GOV.UK explains the main ways to set up a business. An accountant can help you understand which is suitable for your circumstances.
Keep records of sales, expenses and payments from the start. Save invoices and receipts where you can find them. See HMRC’s guide to records for self-employed people and help with setting up business accounts.
4. Choose a name and website address
Your domain name is your website address. Check the price to register it and the yearly renewal cost. Register it in an account you can access yourself, even if someone else is building the website.
5. Set up a website that helps people buy
A service business may need a few pages explaining the work, prices or how to get a quote, and a way to contact you. An online shop also needs product details, payment, delivery information and a way for customers to ask for help.
Compare building your own website with hiring a designer. If you want an online shop, read our Shopify and WooCommerce comparison.
6. Get ready to look after customers
Decide how you will answer enquiries, fulfil orders and deal with complaints or returns. If you sell to consumers online, check the information and selling rules on GOV.UK before you start.
If you collect customer names, contact details or delivery addresses, the Information Commissioner’s Office has guidance for small businesses on looking after personal information.
7. Try everything before you tell people about it
Ask someone to use the website on their phone. Can they understand what you offer and find the price or request a quote? Test the contact form and, if you sell online, an order and refund. Check that the right emails arrive.
Keep the website and payment accounts in the business’s control, save the renewal dates and arrange help with updates if you need it.