What does it cost to start a business in the UK?

It's usually the first thing people ask when they're thinking about starting a business, and it's a good question to start with. The honest answer depends on the kind of business you have in mind. A mobile service you run from home needs very different money to a care business with staff.

What helps is knowing that the costs fall into a few clear groups. Once you can see them, you can put a number next to each one, and the whole thing starts to feel much more manageable. Here's how we'd break it down.

The short answer

The cost of starting a business in the UK depends on the type of business, but it always falls into two budgets: building the business (plan, brand, website and systems) and getting it trading (equipment, stock, insurance, licences and money for your first few months). With Business Factory, a Base that covers the first budget starts from £3,495, and every Base page shows a rough "To get started" figure for the second.

Two kinds of money: building the business and getting it trading

It helps to split your budget in two from the start.

1. Building the business. The plan, the forecast, the name and brand, the website, the way you look after customers, and the documents you'll send them.
2. Getting it trading. Equipment, stock, a vehicle, insurance, any licences, marketing, and a cushion of money to keep you going while your first customers arrive.

People often budget for the second part and forget the first, or try to do the first part themselves in the evenings. Both are fine choices, as long as you make them on purpose.

1. Making it official

Before you trade, you'll decide how the business is set up. Most new businesses start either as a sole trader or as a limited company. Each has different paperwork, and a limited company has a registration fee with Companies House.

Official fees and rules change from time to time, so check them at the source. GOV.UK explains setting up as a sole trader and registering a limited company, including the current fee.

You'll also want a separate business bank account, and it's worth speaking to an accountant early. We don't give accounting or tax advice, but we're happy to point you to people who can help. If you'd like support with forming your company and the admin around launch, Company Setup is an optional extra at £350.

2. The foundations: plan, brand, website and systems

This is the part that's easy to underestimate. To open your doors with confidence, you'll usually need:

• a clear idea of who your customers are, what you'll sell and how you'll price it
• a business plan and a forecast showing when you might break even
• a business name, a logo and a look that's yours
• a website that explains what you offer and lets people get in touch
• a simple way to keep track of enquiries and customers
• quotes, invoices and agreements, where your business needs them
• privacy, cookie and website terms pages

You can piece these together yourself, or with several different suppliers. That can work well, but it takes time, and you're the one joining it all up.

That's the part a Base takes off your plate. A Base is a starting point for a type of business, like cleaning, mobile food or coaching. You bring the name and the ideas, and we shape the rest with you, so it ends up yours. Every Base includes all of the pieces above, built together as one package, plus a step-by-step guide to launching and running things day to day.

Packages start from £3,495. As two examples, the Trades Base and the Events Base each have a Factory price of £3,995. If you'd rather build your own idea from scratch, a bespoke build starts from £12,995.

3. Getting ready to trade

The second half of your budget is about the things your particular business needs to start serving customers. Depending on what you're doing, that might include:

• tools, equipment or a vehicle
• your first stock and packaging
• premises, or a pitch or venue
• insurance, and any licences or registrations your sector needs
• marketing to announce your launch
• working capital, so you're not relying on your first week's takings to pay the bills

This varies more than anything else, which is why every Base page shows a rough "To get started" figure alongside the Factory price. It's separate from what you pay us. For example:

• Events Base: about £1,500 to £5,000 to get started
• Trades Base: about £2,500 to £10,000 to get started
• Personal Social Care Base: about £8,000 to £25,000 to get started, as it needs a small team from day one

Every Base also comes with a guide to what you'll need to buy and where to get it, and pointers for setting up banking, insurance and accounts. So you're working from a list, rather than a blank page.

4. The costs that carry on after launch

Some costs keep going once you're trading. Plan for them now so they don't catch you out:

• Website and hosting. With a Base, your first year of hosting and technical upkeep for your website and customer system is included. After that there's a yearly fee to keep them running.
• Insurance renewals, software and your accountant. These usually come round every month or every year.
• Support, if you want it. Ongoing Support is an optional extra at £95 a month, for technical and day-to-day help after launch. Marketing Pro, at £750, adds a fuller marketing strategy and launch plan.

Every Base works on its own. Add extras only if and when you want them.

5. Your time counts too

Time is the cost people forget most often. Building a business takes decisions, and lots of them. If you're doing it around a job or a family, it helps to be realistic about how many hours a week you can give it.

When we build with you, things move fastest when you can reply and sign things off without long gaps. Each business shows a rough build time, so you can plan around it.

How to work out your own number

Here's a simple way to get to a figure you can trust:

1. Pick the type of business. If you're not sure yet, our free checklist, Is starting your own business right for you?, walks you through seven questions at your own pace.
2. Write down the foundations. Either cost each piece separately, or use the Factory price of the Base that fits.
3. List what you'll need to trade. Use the "To get started" range on the Base page as a first guide, then check real prices for your area.
4. Add the ongoing costs for your first year.
5. Look at your forecast. Every Base includes a three-year forecast showing when you might break even, with best and worst cases. It's a planning tool, and it can't promise results, so read our forecast disclaimer alongside it.

How paying for a build works

We always talk first. There's no checkout, no pressure and no obligation. Once we've talked through what fits, what it costs and what's included, we send you a written order. You pay half to get started, and the other half when everything's ready and we hand over your files, logins and access. You can see each step of a build before you decide anything.

Your brand, your content and your customer data are all yours.

Frequently asked questions

How much money do I need to start a business in the UK?

It depends on the business. Add up what it costs to build the business, what you need to start trading, and your ongoing costs for the first year. As a guide, the rough "To get started" figures on businessfactory.uk range from about £1,500 to £5,000 for the Events Base to about £8,000 to £25,000 for the Personal Social Care Base. These are separate from the Factory price.

How much does it cost to register a business in the UK?

Official fees are set by the government and change from time to time, so check them at the source. GOV.UK explains setting up as a sole trader and registering a limited company, including the current fee.

How much does Business Factory cost?

Packages start from £3,495, and a bespoke build from your own idea starts from £12,995. You pay half to get started and half at hand over. Each Base page shows its own price and optional extras.

What costs carry on after I launch?

Expect insurance renewals, software and your accountant. With a Base, your first year of hosting and technical upkeep is included, then there's a yearly fee to keep your website and customer system running. Ongoing Support is optional.

Are the forecast figures guaranteed?

The figures are a rough guide. Every Base includes a three-year forecast based on the plan we agree together, with best and worst cases, but it can't promise results. Read our forecast disclaimer alongside it.

Does Business Factory give accounting or tax advice?

We don't give accounting or tax advice, but we're happy to point you to people who can help. It's worth speaking to an accountant early.

Start with a clear number

Starting a business costs money, and it's much easier to plan once you can see where that money goes. If you'd like to talk through your idea, which Base might suit it and what your own number could look like, we'd love to hear from you. Have a chat.