The top online businesses in UK are:
- Local lead generation
- SEO services
- SaaS business
- e-Commerce store
- Affiliate marketing
- Digital freelancing services
- Online bookstore
- Online business consulting services
- Blogging
- Online coaching business
Starting an online business in the UK is a good choice because of its strong digital infrastructure and supportive government policies. With 96% of UK households having internet access, the market is primed for online businesses to thrive. According to World Bank, the UK ranks 8th out of 190 economies for ease of doing business. Its stable economy and favorable tax laws create a conducive environment for entrepreneurship. The government also provides various resources and support programs to help businesses grow and succeed.
One Reddit user shares that starting an online business in the UK is simple. They mention that it only costs £12 to register a limited company online. They point out that HMRC offers useful tools for paying taxes and filing VAT returns. And accounting software helps reduce the need for hiring staff, making management easier. They explain that the internet allows small businesses to compete with larger ones through social media and SEO.
However, some entrepreneurs might find it difficult to secure funding. One Reddit user explains why it is hard for entrepreneurs to get funding in the UK. People are more traditional and less willing to invest in startups. The venture capital industry is also much smaller. This makes it harder to find funding compared to the US.
I've invested countless hours and dollars into various ventures, only to bring in razor thin profits. But then I finally found a profitable online business where you don't have to compete with other online businesses in UK. To help you, I will list down the top online businesses to start in UK. I'll also discuss each business model's market demand, potential profit, and challenges you might encounter. Lastly, I will present the best online business model that is profitable and scalable.
1. Local Lead Generation
Local lead generation is attracting and selling leads to local business owners. It's a digital marketing business model. It entails setting up online channels to connect customers with home service businesses. These online channels can include websites, PPC ads, and social media accounts. Common local lead generation niches include plumbing, roofing, and electrical work.
My preferred method of local lead generation is by setting up websites. Also known as rank and rent, this version of the business model involves ranking a website on the first page of Google. Then, renting the readymade marketing channel to a local business owner for £400 - £2,000. The site is ranked in 6 weeks to 6 months using local SEO tactics. These sites typically only cost a few hundred pounds to create and can generate long-term passive income. James Dooley is one example of the potential this business model has in the UK.
James Dooley of UK-based PromoSEO is known as "The $100 Million SEO". He has achieved an estimated 8-figure net worth by setting up a network of thousands of local lead generation websites for UK businesses.
2. SEO Agency
An SEO agency helps business achieve greater visibility in search engines like Google and Bing. SEO agencies provide services like content creation, link building, and Google My Business (GMB) management. UK SEO agencies typically charge between £1,650 and £5,500 for SEO services, according to Artios.
The SEO agency model is already well established in the United Kingdom. There are approximately 33,167 SEO and internet marketing consults in the country, according to IBISWorld. As such, many business owners are already familiar with and seek out the service. Some of the best SEO agencies in the UK to take inspiration from are The SEO Works, Solvid, and ClickSlice.
3. SaaS Business
A Software as a Service (SaaS) business creates and sells internet software. The software is cloud-based, so it can be accessed by internet users around the globe. SaaS is an attractive online business model because it's typically charged on a subscription basis. This allows for recurring revenue.
The UK boasts the second highest number of SaaS companies in the world, according to SaaS academy. As such, the UK is one of the best countries for access to SaaS funding and talent. The UK SaaS market is expecting strong growth through the rest of the decade. It is expected to grow nearly 100%, from 20.5 million in 2023 to 40.4 million in 2030, according to Grand View Research. Some of the leading SaaS companies in the UK include QiO Technologies, SenSat, and Juro.
4. Ecommerce Store
An Ecommerce store is selling products over the internet. You can sell products online in the UK through an established marketplace like Amazon, eBay, or Etsy. You can also set up your own independent online store through a platform like Shopify or WooCommerce. Some of the most popular Ecommerce business models in the UK are private label and wholesale. Private label is putting a custom brand on a generic product from a manufacturer. Wholesale is sourcing branded products in bulk for a discount and reselling them individually for a higher cost.
The UK is one of the best countries for Ecommerce because many UK consumers prefer online shopping. In fact, 30% of the total UK retail market are through Ecommerce, according to Ecommerce News EU. The majority 50 million UK residents are Ecommerce users, according to data from Statista. Despite its already widespread adoption, the UK Ecommerce market is expected to grow 21.76% per year through 2029, according to Mordor Intelligence. That means there is ample opportunity for new UK Ecommerce stores.
5. Affiliate Marketing
Affiliate marketing is promoting other brands products to earn commissions. Affiliate marketers in the UK attract online traffic through channels like blogs, PPC ads, and social media like YouTube and TikTok. To get credit for a sale or action, affiliate marketers use affiliate links. An affiliate link is a custom website URL that an affiliate can place in their promotional content. The affiliate link is how brands track an affiliate performance. Affiliate markers obtain affiliate links through affiliate programs and networks. Some of the most popular affiliate programs and networks in the UK are Amazon Associates UK, eBay Partner Network, and CJ Affiliate.
The UK is the second largest market for affiliate marketing, according to Rewardful. It accounts for 15% of all affiliate activities globally. Shopify UK notes that 56% of UK consumers have bought from an affiliate site. This indicates that content marketing works especially well for the UK market. The average affiliate marketing salary in the UK is £50,129, according to Jooble UK.
6. Online Freelancing
Online freelancing is offering services to clients over the internet on a project or contractual basis. Freelancers are self-employed and work independently, typically doing work for multiple clients simultaneously. There are an estimated 4.39 million freelancers in the UK, according to Exploding Topics. Some of the most popular freelancing services in the UK include digital marketing, artificial intelligence, cybersecurity, and data science. Data from Indeed shows that the average freelancer salary in the UK is £18.60.
Freelancers in the UK can find jobs through online platforms like Indeed and Fiverr. However, many freelancers recommend avoiding these sites because they are saturated. Instead, its best to build a network or pitch clients directly you want to work with.
One UK-based freelance mobile dev on Reddit says they try to meet with their clients in-person in London. This has made it easier for them to land clients.
7. Online Bookstore
An online bookstore is a website that allows customers to buy books on the internet. These can be paper books or e-books. Although trending down, reading is still popular in the United Kingdom. Around 21% of Britons consider themselves avid readers while 43% read for pleasure weekly, according to YouGov.
There are already many established booksellers in the UK. Amazon alone makes up 87.9% of the UK e-book marketing, according to Coolest Gadgets. To stand out from the competition, Shopify recommends on specific niches and offering better experiences. For example, offering niche book collections.
8. Online Business Consulting
Online business consulting is providing expertise to help businesses improve operations. This can include expertise in business aspects like marketing, financial planning, and human resources. As of 2024, there are 5.5 million businesses in the UK, according to House of Commons Library. As such, there are many potential clients to serve in the United Kingdom as a business consultant.
According to Management Consulted, the average UK consultant salary is $85,000. For post-MBA consultants, the average salary is $110,398, per Management Consulted. However, agency earnings can be much higher than individual salaries. The MCA report shows that 28% of UK consulting fees come from abroad. This suggests potential for international clients.
9. Blogging
Blogging is self-publishing content online. Blogging typically sharing expertise around a certain niche. Common niches for blogging include travel, personal finance, and fitness. Bloggers can generate online income through a variety of strategies. Some of the most common blog monetization strategies are affiliate marketing, Google AdSense, and selling products or services. The average blogger in the UK generates just £31,701 per year, according to data from Glassdoor. However, the top UK bloggers like Zoe Sugg of Zoella and Louise Pentland of Sprinkle of Glitter 6 figures per year or more.
Many people read blogs in the UK. For example 26% of people aged 5-18 in the UK read internet blogs, according to Ahrefs.
10. Online Coaching Business
An online coaching business helps clients pursue success in a domain of life. For example, career, personal finance, dating, and fitness are common online coaching niches. You can offer coaching services to both individuals and businesses. According to the Chartered Institute of Personnel and Development, 84% of UK organizations use coaching as a development tool. The average salary for an online coach in the UK is £31,641 per year, according to data from Glassdoor. However, UK online coaches with established products and testimonials can earn much more.
Lisa Bean is an example of a highly successful UK online business coach. Lisa makes money through her books, programs, 1-on-1 coaching, and events. For example, her 6-12 month coaching costs between £5,000 - £10,000.
11. Recruitment Agency
A recruitment agency finds talent for companies. They search for qualified candidates to fill job vacancies and earn a fee for making the connection. Many UK businesses use recruitment agencies to make the hiring process more efficient. The UK recruitment market reached £141.2 billion in 2022 because of the demand for this service. The average recruiter in the UK earns around £36,976 per year on average, according to Glassdoor.
The Recruitment & Employment Confederation (REC) of the UK counts over 30K recruitment agencies in the UK. Some of the leading UK recruitment agencies include Morgan Hunt, Michael Page UK, and Huntress Group.
12. Travel Agency
A travel agency helps vacation seekers to plan and book trips. Brits are some of the most well-traveled people on the planet. The average UK resident averages 1.3 overseas holidays per year, according to 2022 data from Statista. As such, there is a huge market for travel and travel planning services. The UK travel agency market is valued at £141 billion, as of 2023 data by Mintel.
The average salary for a travel agent in the UK is £22,843, according to Glassdoor. Earnings typically come through commissions paid by travel partners for securing business. Earnings can also come directly from clients in the form of additional fees. Some of the leading travel agencies in the UK include Audley Travel and Hays Travel.
13. Foreign Language Tutoring
Foreign language tutoring is teaching a student how to speak a language besides their native language. Spanish, French, Mandarin, and German are some of the most popular languages for English-speaking UK residents to learn. However, the UK is a melting pot of cultures, hosting many foreign residents. A study by online language platform Busuu found that English was the most popular language to learn in the UK in 2021. This indicates a high demand for ESL teachers in the UK.
You can offer foreign language tutoring services through online platforms like Italki, Preply, and Cambly in the UK. The average foreign language tutor in the UK earns £36,273 per year on average, according to Glassdoor.
14. YouTuber
A YouTuber publishes video content on the YouTube platform. YouTubers can earn from ads running on their videos, affiliate marketing, brand sponsorships, and selling their own products and services. Approximately 82.8% of the UK's internet users view content on the platform. Enabling Google AdSense to generate ad revenue on videos in the UK can be relatively lucrative.
The UK enjoys one of the highest CPMs of any country, only behind the USA, Australia, and Canada. YouTuber channels in the UK generate average CPMs between £3.15 - £4.75. Some of the top British YouTubers to take inspiration from include KSI, Sidemen, and Zoe Sugg.
15. Virtual Event Planning
Virtual event planning is creating events that occur remote over the internet. Virtual events coordinate a more convenient experience for information discovery and networking. Allied Market Research estimates that the UK virtual event market will grow at a strong 13.3% per year through 2027. Approximately 61% of virtual events are profitable, according to a study by Event MB. Dynamic Events and ConnnectIn Events are examples of virtual event planning companies in the United Kingdom.
16. Online Fitness Training
Online fitness training entails providing exercise regimens and dieting tips on the internet. Online fitness trainers can make money through advertising revenue on platforms like YouTube, selling customized routines and diet plans, selling merchandise, live streaming apps like Twitch, affiliate marketing, and brand sponsorships. The UK is one of the major markets for online fitness training, accounting for £3.9 billion by 2022, according to Future Fit.
Joe Wicks is one of the most popular online fitness coaches in the UK. Known as "The Body Coach", Joe offers the Lean In 15 diet and exercise program. He teaches people how to become fit with 15-minute meals and workouts. He generates an audience through his free YouTube and Instagram content and sells his book and fitness app.
17. Legal Document Preparation Services
Legal document preparation services help people understand, complete, and file legal documents without the high cost of an attorney. The UK is a major market for legal services. It's valued at over £45.12 billion, according to Spherical Insights. There are currently just over 1.3K documents preparation services in the UK, of which legal services contribute a portion, according to IBIS World. Sky Solicitors and Policy Pros are some of the leading legal document preparation services in the UK. These companies can charge between £25 - £450 for drafting legal documents.
18. Online Customized Clothing Services
Customized clothing service facilitates the creation of unique clothing items for customers. This can range from creating custom graphic t-shirts with print on demand to creating more decorated apparel like embroidery. The trend indicates a growing demand for custom clothing in the UK. The market for custom t-shirts in the UK alone is expecting a healthy growth of 6.05% per year. YRF Store, Contrado, and Not Just Clothing are some of the leading retailers for custom cloths in country.
19. Virtual Assistant Services
Virtual assistants support business with a variety of administrative services. These services can include digital marketing support, data entry, scheduling, accounting, and customer service. Approximately 35% of businesses in the UK leverage virtual assistants in their operations, according to Irving Scott. As such, a large portion of businesses already understand their value. Virtual assistants in the United Kingdom earn nearly £15 per hour, according to data from Talent. You can scale this business model by hiring a team of offshore virtual assistants with good English skills and staff them at agencies for the higher UK market rate to earn a profit.
20. PR Consulting Services
PR consulting is providing guidance on managing the public's perception of a company. Public relations consultants can help businesses form a positive public view by:
- Building media relationships
- Crafting public facing messages and distributing through press releases
- Organizing community events
- Performing crisis management to avoid bad press
Due to stable demand, the amount of PR businesses in the UK has grown by 4% over the last 5 years, according to IBISWorld. The average PR professional in the UK earns £35,000 per year, according to data from Talent.
Although there are still opportunities, the demand for PR services is shrinking in the current economy. A 2024 survey by the Chartered Institute of Public Relations (CIPR) found that just 38% of PR professionals say their agency is growing. That's down from 73% in 2022.
21. Dropshipping Business
Dropshipping is an Ecommerce business model where you don't hold any inventory. You market products from dropshipping suppliers and those suppliers ship the product directly to the customer when purchased. Some major dropshipping suppliers in the UK include:
- SaleHoo
- CJ Dropshipping
- HyperSKU
- Avasam
- The Wholesaler UK
- AutoDS
You can list these products on your own website or in an Ecommerce marketplace. Platforms like Shopify and WooCommerce provide effective solutions for creating an Ecommerce website. However, you'll have to invest heavily into marketing as there is no pre-existing audience to rely on. Marketplaces like Amazon, eBay, and Etsy provide extensive user bases to sell products to. However, these platforms are highly competitive with millions of sellers.
The UK is one of the top countries for dropshipping. Data from Horizon Grand View Research shows that the UK accounts for 6.3% of global dropshipping sales as of 2023. Shopify estimates that new UK dropshipping businesses can generate £850 and £1,750 a month within the first year.
A UK dropshipper named Phil was able to make £52,000 in his first 3 months dropshipping. He set up his store on Shopify and sourced products from AliExpress. He used Facebook Ads to market his products. Although he didn't make any money the first week, his Facebook pixel collected solid data and started helping him generate profits soon after.
22. Content Writing Services
Content writing is planning, writing, and publishing written materials. This can be for marketing, educational, and entertainment purposes. Typically, content writing is for digital formats like blog posts and newsletters. Content writers in the UK can earn £15.38 per hour for their services. This is a relatively easy business to start if you have solid writing and editing skills. Some of the best content writing businesses in the UK include Wrise and Content Hero.
23. Virtual Thrift Shop
A virtual thrift shop collects and sells second hand clothing and accessories. Virtual thrift shops tap into the growing demand for eco-friendly shopping options. According to ECDB, 62% of UK secondhand shoppers prefer eBay for their purchases. A single secondhand item displaces 8 kg of CO2. It cuts emissions by 82% compared to new clothes. This aligns with increasing consumer awareness of sustainability issues in fashion. Online thrift stores’ profit margins can range from 30% to 60% depending on the items sold.
Profits for thrift stores hover around 3-4% of total sales. Using the average revenue, a virtual thrift shop could earn $9,000 to $12,000 in annual profit. But some successful thrift store flippers have reported earnings of up to $101,500 annually. For example, Go Thrift is currently earning $349,680 per month. Their selection includes vintage clothing, retro styles, and sustainable fashion products.
24. Financial Consultant
A financial conslutant guides clients through financial decisions like investing and retirement planning. Data from Professional Advisor shows that only 11% of UK adults have sought financial advice. Meanwhile, 49% are uneasy about their retirement savings. This suggests a significant untapped market for financial consultants. The industry’s high satisfaction rate also suggests a good potential for client retention and referrals. Brighton Williams & Partners states that 90% of those who see a financial adviser feel it has helped them.
According to Glassdoor, the average salary for a financial consultant in the UK is £45,979 per year. Starting this business typically requires experience working in financial roles and obtaining certain qualifications. For example, Diploma in Regulated Financial Planning, Diploma for Financial Advisors, and Investment Advise Diploma.
25. CRM System Provider
A CRM system provider sets companies up with the proper software to effectively manage customer relationships. Companies of all sizes recognize the need for better customer data management. Pragmatiq states that 91% of UK businesses with over 11 employees now use a CRM system.
A small CRM system provider earns an average of £47,500 annually in the UK, according to CWJobs. With a solid client base, a CRM provider can build a stable, recurring revenue stream.
26. Software Development Company
A software development company creates and sells software products. The UK is a hub for tech startups and has a booming FinTech sector. The software market in the UK is expected to grow at an annual growth rate of 6.18% from 2024 to 2029, according to Statista.
Data from IBISWorld shows that there are approximately 27,306 software development businesses in the UK. This high number is likely due to the amount of software talent in the country. The UK ranks 2nd in Europe for number of software employees. The average salary for a software developer in the UK is £61,500, according to DevITjobs. You can start this business as a solo SaaS developer and expand to larger projects with teams over time for higher payouts.
27. Influencer Marketing
Influencer marketing is using the platform of a person with an online following to promote products in exchange for a fee or commission. This is a good online business to start in the UK because of the increasing consumer trust in influencers. Izea found that 54% of UK respondents trust an influencer’s sponsored post more than one from a celebrity. 51% of UK consumers having purchased products promoted by influencers.
A successful UK influencer is Chris Grave, with 447,000 followers on TikTok, who has built a strong presence in the beauty niche. His high engagement rates show the potential for field. UK TikTok influencers earn an average of £25,000 per year, according to Wishu. Full-time UK influencers that spread content accross multiple platforms can earn upwards of £137,000 per year.
28. Graphic Design Services
Graphic design is creating digital art to communicate a message visually. Many UK businesses need professional designs to stand out in a crowded market. They hire graphic design agencies and freelancers for tasks like branding, website imagery, and advertising media. Data from IBIS World shows there are nearly 11K graphic design businesses already operating in the UK. However, graphic designers are on the UK's Immigration Salary List which details labor shortages in the country. This indicates there is further demand for graphic design services in the UK.
You can start as a freelance graphic designer to build a portfolio of work and scale this business from there. A freelance graphic designer in the UK earns £34,138/hour on average, according to Glassdoor.
One freelance graphic designers on Reddit from Manchester says they are able to charge £270 a day for their services.
29. Social Media Management Services
Social media management entails coordinating a business's social media presence. This includes brand building through organic posts and running paid ads like FB Ads. Many businesses in the UK recognize the importance of social media for marketing. In fact, 71% of UK businesses use social media for marketing, according to Manchester-based agency Fly High Media.
The average social media manager in the UK earns £35,000 per year, according to data from Talent. A new social media agency owner from London on Reddit mentions they only make £26,000 per year despite solid results. Although they mention only doing work for one client.
30. Online Courses and Workshops
Many UK businesses now use online courses for employee training. This creates opportunities to partner with companies. DigitalDefynd says that 45% of UK online learners are high-level pros. A study found that 80% of UK learners got a promotion or a new job within 6 months of finishing a course. This demonstrates the practical value of online education in the job market.
The average profit margin for online courses is around 90%. This means that for every $100 in revenue, approximately $90 is profit after expenses. This high margin is due to the low overhead costs associated with digital products. Once the initial investment in course creation is recouped, most of the revenue is profit. A Udemy instructor, Len Smith, earned $2,000 to $4,000 per month from his copywriting courses. His course “Copywriting Secrets — How To Write Copy That Sells” earned $3,000 in two days.
31. Accounting or Bookkeeping Firm
Many UK small businesses prefer virtual accountants for their flexibility and lower costs. Rackspace found that 88% of small businesses save money by using cloud computing. The UK government’s Making Tax Digital initiative is pushing businesses towards digital accounting. MTD is about modernizing how the UK handles taxes. It means businesses need to keep digital records and submit tax returns online. Accounts and Legal reports that 41% of small business owners still don’t know about MTD. Online accounting firms can offer MTD compliance support services by:
Helping clients choose and implement MTD-compatible software (Zero, Sage Accounting, FreeAgent, QuickBooks, MTDfVAT)
Providing training on digital record-keeping
Assisting with the digital submission of tax returns
Link My Books notes that small accounting firms see profit margins of 20% to 40%. B2B Reviews show that remote bookkeeping service charges $31 to $49.60 per hour. This means that a firm can generate an annual revenue of $62,000 to $99,200. Specializing in niche markets or specific services lets you charge higher rates and earn more.
32. Video Editing Services
In the UK, people spend an average of 1 hour and 49 minutes each day on 6.4 different social media platforms. This level of engagement fuels the growing demand for video content and editing. In fact, online videos now make up over 82% of all consumer internet traffic. UK video editing agencies are known for their speed, often delivering first drafts within 1 to 3 days. This quick turnaround boosts client satisfaction and helps secure repeat business.
Profit margins for video editing services typically range from 20% to 30%. The daily rates for video editing in the UK vary between $62 to $435. Cities like London, with their large populations, require higher rates. New businesses may start with 10-20% profit margins. As the company grows and gains more clients, annual earnings could increase to $50,000 to $100,000 within 2-3 years. This assumes consistent work and a growing portfolio.
33. Digital Creator
Digital creators are among the top online businesses in the UK because of the growing demand for online content. You can profit from digital content, such as videos and podcasts, blogs, and social media posts. As of early 2024, there were 66.33 million internet users in the UK, with 97.8% internet penetration. It signifies a substantial and growing audience for digital creators. The UK market also has an impressive pool of 98,000 creators, with over 5,000 followers on Instagram. This diversity allows for niche specialization. It lets creators stand out in specific content areas.
Successful digital creators can earn 6 or 7-figure incomes. New digital creators in the UK can earn between $100,000 to $200,000 annually. Gaming YouTuber DanTDM has built a massive following with his Minecraft gaming content. His YouTube channel has 27 million subscribers. He makes $500,000 to a million a year. Some top niches for digital creators in the UK are:
Beauty and Fashion
Gaming
Fitness and Wellness
Personal Finance
Technology and Gadgets
Travel
Home Improvement and DIY
34. Social Media Management Consultant
SMEs in the UK are increasingly relying on social media. 76% of today’s business owners lean on social media platforms or an online presence to drive sales. CIM found that 42% of UK marketers feel under-skilled in using social media effectively. This skills gap is an enormous opportunity for social media consultants. Social media management consultants can provide expertise in creating effective social media strategies, managing campaigns, and analyzing results.
Industry data shows that social media marketing agencies have 11% to 20% profit margins. For every $100 of revenue, the agency makes a profit of $20 to $30. UK social media consultants can stay profitable by focusing on niche areas or specific platforms. Specializing in TikTok marketing or B2B LinkedIn strategies can distinguish you from generalists. Consultants using AI effectively, without losing authenticity, can boost efficiency and deliver greater client value.
35. Transcription Services
The UK’s multicultural population makes transcriptionists skilled with various accents highly valued. Legal, medical, and academic institutions need high-quality transcripts, ensuring a consistent client base. 78% of UK transcription providers saw higher demand for accent-specific work last year. UK data laws, such as GDPR, provide a competitive edge for transcription services. This leads clients to trust UK services with sensitive data for legal and medical transcriptions.
According to an ATC survey, margins for translation services ranged from 26% to 77%, with an average margin of 49.5%. Transcriptionists at transcription companies can earn $0.30 to $1.10 per audio minute. Rev.com says that a transcriptionist who completes 15 jobs earns $156 per month, on average. A seasoned transcriptionist’s salary can come out to around $1,495 per month.
36. Print on Demand
The UK has great infrastructure and logistics for POD operations. There are many print providers across the country. Printify, for example, works with eight different providers in the UK. This means faster production and shipping times. A survey by HERE Technologies shows 72% of UK logistics professionals are improving real-time supply chain tracking. The UK also makes things easy for POD businesses with GBP currency support. Some platforms let you see catalogs, set prices, and pay in GBP. This makes account management simple for UK POD businesses.
Printful says a good profit margin for print-on-demand businesses is 20% to 40%. A UK POD business can earn anywhere from $1,900 to $12,000 per month on average. Some successful POD stores can earn even more. According to Dropshipping, about 3.8% of print-on-demand stores make $60,000 in revenue every month. For example, FIERCEPULSE store that sells bold leggings report earning $83,333 per month. The top-selling print-on-demand products in the UK are:
Apparel
Accessories
Home decor
Pet Products
Baby clothing
37. Medical Billing
The UK has a thriving medical billing industry, with over 150 companies in the market. It’s a growing field with significant opportunities. Civica Medical Billing and Collection leads the industry, serving over 1,800 consultants. The NHS Jobs portal frequently posts positions for billing officers and finance assistants. Private hospitals, clinics, and medical billing firms are also hiring. The rising healthcare costs and increased complexity are driving up demand for billing services.
Medical billers charge a percentage of the claims they process, usually between 5-10%. They can make $32,000 per year. Billers can specialize in healthcare finance or specific medical fields. This can lead to higher-paying jobs. The highest-paying roles for medical billers in the UK are:
Revenue Cycle Director ($193,000 - $248,000 per year)
Medical Billing Manager ($85,000 - $111,000 per year)
Senior Medical Coder ($66,000 - $94,000 per year)
Healthcare Data Analyst ($60,000 - $80,000 per year)
Medical Coding Specialist ($55,000 - $75,000 per year)
38. Data Entry
Data Entry Institute reports a 7% growth in data entry specialist job postings over the past year. There’s also high demand across various industries. Almost all sectors, including finance, retail, healthcare, and government, need data entry services. This provides job security and diverse opportunities. According to Pay.com, a net profit margin of 10% or higher is good for a small data entry business. A small data entry business might earn anywhere from $30,000 to $100,000 annually.
Many professionals use these jobs to network and do admin tasks. This can lead to career growth and higher-paying roles. The role is also often less stressful than other office jobs, which can appeal to those looking for a better work-life balance. Some certifications a UK data entry service should have to ensure reliability are:
CPD Accredited Data Entry Certificate
GDPR Certification
Microsoft Office Certifications
39. Digital Marketing Agency
British consumers are very active online, spending a lot of time on social media and shopping on the internet. eCommerceNews UK reports that 50% of all purchases in the UK are now made digitally. UK businesses are eager to improve their digital marketing to reach potential customers. As a digital marketing agency, you can help them succeed online and grow your own company at the same time.
According to Seven Figure Agency, the average profit margin for digital marketing agencies is around 40%. Marketing agency owners earn between $39,000 and $91,000 annually. As your agency grows, you can gain more clients. You can then increase your revenue without raising your costs much. This can lead to good profit margins for your business. Agencies specializing in high-demand services like SEO or social media marketing may command higher prices and achieve better profit margins.
40. Customized Gift Business
Personalized gifts cater to the British desire for unique and customized presents. British shoppers will pay 7% more for personalized items. The UK personalized gifts market is experiencing significant growth. According to the survey data, 74% of Brits still prefer traditional gifts over cash. Investopedia reports that small personalized gift businesses earn 7-10% profit. Leah Shave’s StarbuckiesCo Etsy store earns StarbuckiesCo $630 per month in profit. Her store is known for selling personalized Starbucks cups.
Popular customized gifts include alcohol products, books, calendars, and children’s clothing. Online platforms like Etsy provide easy access to a wide customer base. To succeed, businesses should offer a variety of customization options. Engraving, embroidery, and UV printing are popular techniques. Focusing on quality and customer service helps build a loyal clientele.
41. Interior Design Services
The rapid growth of urbanization and the UK real estate sector fuels demand for interior design services. New residential and commercial developments rely on appealing interiors to attract buyers and tenants. The UK interior design industry has expanded at a 1.1% CAGR from 2019 to 2024, now home to 6,352 businesses. Interior designers bring expertise and tailored solutions to transform spaces. Interior design firms have a gross profit margin of 35-40%. This leaves $35 to $40 per $100 in revenue after covering direct costs.
Virtual design consultations include video calls, 3D visuals, and detailed shopping lists. They provide clients with a complete design experience from home. Young and middle-aged professionals, aged 20s to 40s, are the main clients for successful UK online interior design services. These clients are tech-savvy and comfortable with online platforms. The most popular online interior design services in the UK include:
My Bespoke Room
Topology Interiors
Zoom That Room
Decorilla
John Lewis Virtual Home Design Service
Is Starting an Online Business in UK Profitable?
Yes, starting an online business in UK is profitable because of its large and growing online market. The UK e-commerce market is one of the largest in Europe. According to Forbes, 26.5% of all retail sales in the UK were made online. It's expected to keep growing in the coming years. Online businesses can operate 24/7 and reach customers across the UK and even globally. This provides more opportunities to make sales compared to a local physical business in UK. The UK government also offers support for digital businesses. Programs like Help to Grow: Digital provide funding and resources for small businesses to adopt digital technologies. Although online businesses can be profitable, UK online business owners face challenges like:
One Reddit user outlines the struggles of running a business. They began in 2020 with product costs at £100 and a selling price of £150 plus postage. Costs have risen sharply. Current product costs are £200 but marketing now exceeds £60. They are considering raising prices to £350 to secure a £40 profit but doubt the market will accept it. They face challenges competing with cheaper, imported alternatives. They acknowledge Co-op shelf-stacking offers better pay but still value the independence of running their own business.
Another user user said high taxes make it hard to grow a business from the ground up. They also pointed out that the U.S. has a much bigger population. This gives businesses in the U.S. a better chance to reach more customers and grow.
7 Legal Considerations for Online Businesses in UK
YouTuber Ken Okoroafor breaks down the key legal steps for starting an online business in the UK. He stresses selecting a business structure aligned with your goals and liability needs. He explains the need to register with HMRC and Companies House to stay compliant. VAT registration is required if your turnover exceeds $109,849. But it can also benefit businesses looking to reclaim VAT on expenses. A GDPR-compliant privacy policy is essential to safeguard customer data. He advises creating clear terms and conditions to set customer expectations. Reviewing funding contracts with a lawyer is crucial to avoid hidden risks. Accurate tax records and professional accounting support are also critical for long-term compliance.
The YouTube channel Honest Money explains the challenges self-employed people face when applying for mortgages in the UK. The channel notes this makes mortgages harder for new business owners. They recommend planning ahead by securing a mortgage before transitioning to self-employment. The video also provides instructions on accessing SA302 forms and tax overviews from the HMRC portal. Most lenders require 2–3 years of income proof for self-employed applicants.
Is Starting an Online Business Worth It?
Starting an online business is worth it if you put in the effort and long hours to earn decent profit. The UK is Europe's most profitable e-commerce market. Its growing preference for online shopping makes it an attractive place for entrepreneurs. With 66 million internet users and 57 million on social media, there's a vast potential audience for online businesses. You can use digital marketing to reach more consumers and boost sales. A Retail Dive report found 87% of consumers search for products online.
An online business is also easy to scale your business into other opportunities. This is because you don't need to find or rent a new location in UK. You can add or open up a business by simply creating a new website or by updating your online store. You can start an online business at a low cost of only $25 to $1,500. There are even some successful online businesses that started with zero initial investment.
Why Do Most Online Businesses Fail?
Most online business fail because of:
Conclusion: Which Online Business Model is the Most Profitable?
Local lead generation is the most profitable online business in the UK due to its high return on investment and targeted approach. A local lead generation business can earn $500-$2,000+ per month for each lead generation website. This is more profitable than other online businesses like dropshipping or affiliate marketing. Dropshipping often has thin profit margins and requires constant inventory management. Affiliate marketing can be competitive and relies on driving large volumes of traffic. In contrast, local lead generation allows you to focus on a specific geographic area and industry niche.
Local lead generation solves many challenges faced by other online businesses. It doesn’t require holding inventory or dealing with shipping logistics. You target specific local businesses and industries with less competition than national or global markets. Local lead generation also provides more stable, recurring income compared to the fluctuations common in e-commerce or affiliate marketing. Focusing on local markets can help you build better client relationships. It can also add more value.
Local lead generation means making websites to attract local service seekers. These sites capture leads and sell them on to local businesses. You can earn $20-$50 per lead, which adds up to $500-$2,000 per month for each site. High-value services like roof repair or landscaping can bring in higher commissions. The earning potential increases as you build more lead generation sites. Successful local lead generation businesses earn over $50,000 per month from multiple sites. Local lead generation business model offers significant growth potential for entrepreneurs willing to invest time in building and ranking local websites.
