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Low Cost Business to Start: 10 Itemised First-Year Budgets | Female Entrepreneurs

TL;DR: what does a low cost business really cost to start?

Less than you fear, but more than "€0". A Vinted reselling business can start for about £10 in the first year, tutoring for about £41 and a virtual assistant business for about £72, while bookkeeping needs at least £611 because of compulsory anti-money-laundering supervision. Below are line-by-line first-year budgets for 10 low cost businesses, built from official 2026 prices, the shared costs in the UK and EU, and how to cut each budget before you spend.

👉 Plan your budget step by step in the Fe/male Switch startup game
"Start a business for under €100" sounds great until you discover the insurance, the background check, the registration fee and the software subscriptions. As a founder who has bootstrapped more than once, I've learned that the best protection is a line-by-line budget before you spend anything.
So instead of another list of cheap business ideas, here's what ten low cost businesses actually cost in their first year, item by item, using official prices checked in October 2026. For a comparison of 22 low cost businesses with cost ranges, time to first revenue and AI risk, see our sister guide to the best low cost business to start. If you want an online business you can run with free AI tools, see our low cost business ideas with AI. For businesses with almost no running costs at all, see these low cost digital product business ideas.
A low cost business isn't one that costs nothing. It's one where you know every euro before you spend it.

The costs almost every small business pays

CostUKEU example
Registering the businessSole trader registration with HMRC is freeNetherlands €85.15 one-off; Berlin trade registration €15 online (freelancers exempt); French micro-entrepreneur free
Email and documentsGoogle Workspace £5.90 a month on the annual plan€6.80 a month on the annual plan
WebsiteSquarespace Basic about £12 a month on the annual planSquarespace Basic €12 a month on the annual plan
Online shopShopify Basic £19 a month on the annual planShopify Basic €21 a month on the annual plan
Card payments in personSumUp Solo Lite £25, then 1.69% per paymentSumUp Solo Lite €34 plus VAT, then 1.39% in Germany
Domain name.com from £1 in the first year, about £15 to renew (IONOS)Similar at most registrars
Public liability insuranceFrom about £65 a year for the cheapest 10% of policies (Simply Business)Varies by country and activity
Sources: GOV.UK, KVK, Berlin service portal, Google Workspace, Squarespace, Shopify, SumUp, IONOS and Simply Business, prices seen in October 2026, excluding VAT where stated by the vendor. Prices change; check before you buy.
Two things stand out. First, monthly plans cost noticeably more than annual ones: Google charges £7 a month on its flexible plan versus £5.90 on the annual plan. Second, many of these costs are optional in month one. You need registration, insurance where clients or the public are involved, and a way to get paid. A website can wait.

First-year budgets for 10 low cost businesses

BusinessLean first yearComfortable first year
Reselling on Vinted£10£260
Tutoring£41£171
Virtual assistant£72£350
Handmade goods on Etsy£73£463
Dog walking and pet sitting£115£261
Home baking£120£335
Social media management£171£460
House cleaning£185£426
Online shop with your own product£579£1,443
Bookkeeping£611£1,111
UK example. "Lean" uses only what you can't avoid; "comfortable" adds tools and marketing that save time. Excludes a laptop and phone you already own.

1. Virtual assistant: £72–£350 in year one

Admin, email and scheduling support for busy founders and small firms, done online.
ItemCostBasis
Google Workspace Business Starter, 12 months (annual plan)£71Price checked
.com domain, first year (renews at about £15)£1–£15Price checked
Website on Squarespace Basic, 12 months (optional; LinkedIn works at first)£0–£144Price checked
Public liability insurance (from about £65 a year for the cheapest 10% of policies)£0–£120Our estimate
Total£72–£350
How to cut it: Start with a LinkedIn profile and a one-page offer instead of a website; add the site once you have three clients.

2. Bookkeeping: £611–£1,111 in year one

Monthly records, invoicing and payroll for sole traders and micro-businesses.
ItemCostBasis
HMRC anti-money-laundering supervision, first year£400Price checked
HMRC approval check for you as the owner£40Price checked
Google Workspace Business Starter, 12 months£71Price checked
Bookkeeping software and training£0–£300Our estimate
Professional indemnity insurance£100–£300Our estimate
Total£611–£1,111
How to cut it: Supervision through a professional body such as the ICB can replace HMRC supervision; compare their fees and what's included. The largest cost is HMRC supervision: £400 per premises each year plus a £40 approval check.

3. Tutoring: £41–£171 in year one

One-to-one lessons in a school subject, music or a language, at home or online.
ItemCostBasis
Enhanced DBS check (new fee from 5 October 2026, plus any umbrella-body admin fee)£41–£60Price checked
500 A5 flyers£0–£31Price checked
Books, worksheets and a graphics tablet for online lessons£0–£80Our estimate
Total£41–£171
How to cut it: Use school noticeboards, parents' groups and free listings before paying for flyers or platform fees. The enhanced DBS check fell to £41 from 5 October 2026, and the basic check to £20, according to GOV.UK.

4. Dog walking and pet sitting: £115–£261 in year one

Walks, home visits and sitting for local pet owners.
ItemCostBasis
Basic DBS check (new fee from 5 October 2026)£20Price checked
Public liability or pet-care insurance£65–£150Our estimate
Leads, bags, treats and first-aid kit£30–£60Our estimate
500 A5 flyers£0–£31Price checked
Total£115–£261
How to cut it: Home boarding of dogs in England also needs a council licence; the fee is set by each council.

5. House cleaning: £185–£426 in year one

Regular or one-off cleaning for homes and small offices.
ItemCostBasis
Cleaning products and equipment£100–£200Our estimate
Public liability insurance£65–£150Our estimate
Basic DBS check (many clients ask for one)£20Price checked
Card reader (SumUp Solo Lite)£0–£25Price checked
500 A5 flyers£0–£31Price checked
Total£185–£426
How to cut it: Start with clients' own products and equipment where they're happy for you to use them. If clients want to pay by card, a SumUp card reader costs from £25.

6. Home baking: £120–£335 in year one

Celebration cakes, bread or bakes sold from your home kitchen.
ItemCostBasis
Council food business registration (free, 28 days before trading)£0Price checked
Food hygiene course (online; not legally required, but training is)£10–£30Our estimate
Tins, tools and packaging£100–£250Our estimate
Allergen labels£10–£30Our estimate
Card reader (SumUp Solo Lite)£0–£25Price checked
Total£120–£335
How to cut it: Take pre-orders before buying equipment, and price in ingredients, packaging and your time.

7. Reselling on Vinted: £10–£260 in year one

Selling second-hand clothes, children's items and vintage pieces online.
ItemCostBasis
Vinted seller fees (sellers pay nothing; buyers pay the fee)£0Price checked
First stock from charity shops, car boot sales and your own wardrobe£0–£200Our estimate
Lighting and a plain background for photos£0–£30Our estimate
Mailing bags and labels£10–£30Our estimate
Total£10–£260
How to cut it: Start with what's already in your wardrobe; platforms report sellers with 30+ sales or €2,000+ a year to tax authorities. Vinted charges sellers nothing; the buyer pays the platform fee.

8. Handmade goods on Etsy: £73–£463 in year one

Crafts, jewellery or prints sold online and at markets.
ItemCostBasis
Materials for a first batch£50–£300Our estimate
Etsy listing fees for 20 listings ($0.20 each)£3Price checked
Canva Pro for product images, 12 months (optional)£0–£100Price checked
Packaging£20–£60Our estimate
Total£73–£463
How to cut it: Etsy also takes 6.5% per sale plus payment processing, so build fees into your prices.

9. Social media management: £171–£460 in year one

Planning, creating and scheduling posts for small businesses.
ItemCostBasis
Canva Pro, 12 months£100Price checked
Scheduling tool for 3 channels (Buffer Essentials, about $5 per channel a month)£0–£145Price checked
Google Workspace Business Starter, 12 months£71Price checked
Website or portfolio page£0–£144Price checked
Total£171–£460
How to cut it: Free plans of scheduling tools are enough for your first two or three clients.
More free tools are listed in our guide to essential free startup tools.

10. Online shop with your own product: £579–£1,443 in year one

A small product line sold through your own online shop.
ItemCostBasis
Shopify Basic, 12 months on the annual plan£228Price checked
.com domain, first year£1–£15Price checked
First small batch of stock£300–£1,000Our estimate
Product photos and packaging£50–£200Our estimate
Total£579–£1,443
How to cut it: Pre-sell on social media or a free marketplace first, and open a Shopify store only once a product sells. Shopify Basic costs £19 a month on the annual plan, plus 2% + 25p per online card payment.

What registering a small business costs in Europe

Registration is one of the smallest costs, but it varies. In the Netherlands the one-off KVK registration fee is €85.15. In Berlin a trade registration costs €15 online or €26 at the office, and freelancers in the liberal professions don't need one at all, according to the Berlin service portal; Munich charges €50–60. France's micro-entrepreneur registration is free. If you want limited liability from the start, our 90-day plan to start a startup compares company registration costs across six European countries.

How to start a business on an even smaller budget

Need a little capital? Small grants and microloans can cover equipment or insurance; see grants for female entrepreneurs in Europe and the free grant finder at grant-grants.com.
Build your budget with an AI co-founder

In the Fe/male Switch startup game you plan your costs, prices and first customers in weekly quests, with an AI co-founder and a community of founders who bootstrap.

👉 Start your low cost business in the game

Conclusion: know your number before you start

The cheapest businesses to start in 2026 still have real costs: insurance, checks, registration and a few tools. The good news is that most of them fit in a few hundred pounds or euros for the first year, and many can wait until the first client pays. Pick the business that fits your skills, copy its budget table, cross out everything you can postpone, and start with the rest. For ideas that fit around family life, see our small business ideas from home for parents.

FAQ: low cost business to start

What is the cheapest business to start?

Reselling items you already own on a platform like Vinted, which charges sellers nothing, can start for about £10 in packaging. Tutoring, virtual assistance and freelance writing also start for well under £100 if you already have a laptop.

How much money do I need to start a small business?

For most service businesses, between about £50 and £500 in the first year, covering insurance, checks, registration and basic tools. Product businesses need more for stock, often £500 to £1,500.

Is it free to register a business?

Registering as a sole trader with HMRC in the UK and as a micro-entrepreneur in France is free. Registering in the Netherlands costs €85.15 once, and a trade registration in Berlin costs €15 online; freelancers in Germany don't need one.

Do I need insurance for a small business?

If you work with the public, in people's homes or with their pets, public liability insurance is strongly advised and often expected by clients. In the UK, the cheapest 10% of policies from one large broker cost about £65 a year in 2026.

How much is a DBS check in 2026?

From 5 October 2026, a basic DBS check costs £20 and an enhanced check £41 in England and Wales, according to GOV.UK. Umbrella bodies may add an admin fee.

Why does bookkeeping cost more to start?

In the UK, bookkeepers must be supervised for anti-money-laundering purposes. HMRC charges £400 per premises each year plus £40 per approval check; professional bodies offer alternatives.

Do I need a website to start a business?

Not at first. A LinkedIn profile, a marketplace listing or a one-page document is enough for your first clients. A basic website costs about £12 a month on an annual plan when you're ready.

Should I pay monthly or annually for business software?

Monthly while you’re testing the business, then switch to annual plans once it works. In the examples above, annual plans were about 15–30% cheaper.
2026-10-12 17:30