Forget client Zoom calls, the next most important meeting that TikTok businesses attend could be on the platform itself. This week, TikTok has introduced its first ever “SME Council” for small brands that sell through the app.

The lip-syncing platform turned social commerce giant has selected 20 businesses to make up the Council, which it says will help to amplify SME voices and empower them to influence the platform’s policies.

The launch comes as new Neilson IQ research found that TikTok Shop was the fastest growing online retailer in 2024, with a 131% annual increase in the number of shoppers using the platform.

Nearly three in ten UK SMEs now on TikTok

Founded in 2018, TikTok has had a meteoric rise over the past five years. After gaining popularity during lockdown, it is now a staple in many Brits’ smartphones. One study recently revealed it to be the most-used platform in the UK, ahead of YouTube and Facebook.

While it started life as a video-sharing platform, TikTok’s large and highly-engaged customer base means it has become a natural hub for small businesses. Popular brands that got big on TikTok include Partner in Wine, Little Moons, and Hair Syrup.

TikTok says it now hosts 1.5 million UK firms who sell through the app. Given there are currently 5.5 million SMEs in the UK, that means roughly 27% are now operating on TikTok.

This growing small business population ranges from dropshipping side-hustles to thriving ventures, all of which use the platform to showcase their products and services and create long-form marketing content.

Commenting on the Council’s formation, Ali Law, Director of Public Policy and Government Affairs at TikTok UK, said: “SMEs across the country come to TikTok every day to share their passions, reach new customers, and grow their businesses. 

“By launching our new Council, we’re taking our support of these businesses beyond the app, giving them a platform to call for policies that will unlock the next phase of their growth.”

Who will be on TikTok’s SME Council?

TikTok appears to have specially selected its 20 Council members from a range of industries that are popular in social commerce such as hair and beauty, clothing, and DIY.

Chosen from across the UK, they include an affordable wig brand located in the heart of Birmingham (@hairanatomyuk), a Manchester-based sleep company (@levitex) that offers practical tips on sleep posture, and an artisan candle seller (@bearburners), in Sunderland.

The Council held its first meeting on 4 April in Stoke-on-Trent, where members discussed the experience of setting up a business in the UK and using TikTok to scale.

Dominique Bogle Khan, founder of Hair Anatomy said: “Being part of the SME Council is such an incredible opportunity. I’m excited to see how the Council evolves and continues to shape the future of small business growth.”

The British Beauty Council has expressed its support for the new committee. This week, it confirmed it will work with TikTok Shop on a programme of content to upskill its partners and patrons on how to get the most out of the platform. 

TikTok prepares for retail revolution

The ecommerce landscape is evolving drastically, driven by the rise in social commerce. Many brands now use livestreams to promote and sell products via digital platforms, like TikTok. TikTok Shop data shows that over 6,000 LIVEs take place in the UK every day.

In a statement announcing the new committee, TikTok described its SMEs as being at the forefront of this new “retail revolution”.

The platform added that the Council’s insights will also be used to create the TikTok SME Manifesto; a set of policy requests to be delivered to the UK Government, which it says will be aimed at encouraging British entrepreneurship.

TikTok is facing a potential ban in the US due to national security concerns. The platform has until 19 June to sell its stateside operations or face a permanent ban, sparking concern among the seven million US entrepreneurs who rely on TikTok to run their businesses.

TikTok’s new SME Council and planned manifesto may also be an effort to prepare for possible regulatory challenges from Whitehall, and avoid disruption for its UK sellers.

Interviews are a crucial part of any recruitment process. They ensure managers can get to know candidates beyond their CVs and decide if they’re the right fit for the team.

However, one thing that often goes under the radar is candidate satisfaction. And in today’s world, where word spreads quickly online, a single bad interview can have a serious impact on a company’s reputation.

Digital PR agency Reboot Online has used candidate reviews to reveal the extent of this issue. Alongside naming and shaming the businesses with the worst ratings, the findings offer SMEs valuable insight into how to conduct a good interview.

15% of all candidates report negative interviews

It’s human nature to share experiences, whether good or bad. And much like when unhappy customers leave feedback about poor service at a restaurant or store, disgruntled job seekers are also compelled to share their interview horror stories online.

Reboot Online analysed data from over 300,000 Glassdoor reviews. It found that on average, 15% of candidates report a negative experience when interviewing with a company. But some well-known firms apparently have an above-average dissatisfaction score.

The study found that Spotify had the highest percentage of negative experiences among the world’s top 100 employers, with 37% of candidates reporting a bad experience. 

Ironically enough, Reboot Online reports that 29% of candidates recall negative interviews at Indeed.com, despite it being the world’s number one job site.

PayPal, Shopify and Netflix follow closely behind with 28% of candidates reporting negative interview experiences. Despite all three being highly desirable places to work, Reboot Online’s analysis finds that one in three interviewees leave unimpressed.

Likely, many of these bad reviews could be from aggrieved candidates who didn’t get the role. But according to Reboot Online, difficult interviews do not correlate with bad experiences. 

Large companies like Salesforce and Rolls-Royce had largely positive feedback from candidates. While both were reported to have high interview difficulty, these companies both received higher satisfaction scores from Glassdoor reviewers.

What makes a bad interview?

A poor interview experience, whether due to a lack of communication, disorganisation or an unpleasant atmosphere, leaves a lasting impression. According to research from StandOut CV, 83% of candidates say a negative interview experience led them to reject a job offer.

So, what are the main offenders of poor interview practices?

Based on Reboot Online’s findings, the most common complaints were around getting ghosted by recruiters, generic rejection emails and interviewers arriving late.

With this, further statistics from StandOut CV revealed that 63% of candidates are unhappy with the lack of communication they receive from employers after applying. Plus, over half of job seekers say recruiters never keep them updated on their application’s progress. 

Meanwhile, a quarter of job seekers have experienced lateness from a hiring manager when attending an interview.

Lengthy interview processes also cause annoyance, with most candidates believing that two stages for an interview are acceptable. 64% agreed that more stages are unnecessary.

Hiring lessons for small teams

With these findings in mind, there are several lessons SMEs can take when it comes to refining their own hiring practices. Here are five ways businesses can ensure a positive candidate experience:

• Keep communication consistent and tailored: keep candidates in the loop at every stage. Even a short, personalised update can set you apart from other companies, where candidates may just feel like another number.
• Prepare beforehand: a business needs to be prepared for interviews too. Make sure that whoever is interviewing the candidate has reviewed their CV fully – especially if you’ve relied on AI screening tools to review the first round of applications.
• Avoid ghosting: even if someone isn’t a good fit, follow up with a clear outcome. This shows professionalism and doesn’t leave the candidate feeling ignored.
• Ask for feedback: after the process, ask a select number of candidates (even those you didn’t hire) for feedback on their experience. It’s a good way to improve your hiring process and shows that you care about getting it right.
• Use scheduling software to stay punctual and professional: tools like Google Meet or Zoom can help you stay organised and avoid being late for interviews. Set automated reminders, buffer times between meetings, and sync across devices to show candidates that you value their time as much as your own.

Any further questions?

You don’t need a huge HR team to make a good impression – just a bit of care and consistency in your hiring practices. 

For small businesses, interviews are a chance to show what your company’s values, organisational culture and day-to-day working style are all about. 

Keep things clear and respectful, and you’ll leave candidates with a positive experience and boost your chances of attracting the best people in the future.

Health in the workplace isn’t just a personal issue – it’s a business one too. While sick leave is a given when managing a workforce, the lack of support for employees can lead to bigger problems down the line.

Long-term sickness absence is becoming a growing concern across industries, and employers that fail to address the issue risk increased staff turnover, burnout, and rising costs from lost productivity.

The issue could also be gendered. Research from UK Med has revealed that more women than men in the workplace feel that their employers do not offer adequate support when it comes to health-related issues.

While progress has been made in promoting general wellbeing, there’s evidently still a long way to go in making women’s health a meaningful part of that conversation.

Women feel unsupported at work over their health

While the need to support employee mental health and wellbeing has become more widely recognised by employers, the UK Med research shows that many female employees still face challenges when it comes to managing their health at work. 

According to UK Med’s Workplace Health and Wellbeing 2025 Survey, women are 63% more likely to feel unsupported at work for health issues than men.

Additionally, women are more hesitant to request sick leave, with 27% saying doing so would make them worried about how their team will perceive them.

There also seems to be gender disparity in workplace benefits, as the study found that men are twice as likely to receive private medical insurance as part of their benefits package. 

Likely, this is due to the type of roles that men dominate. Men are often overrepresented in senior management and executive roles, which typically come with more extensive benefits.

Still, there’s a positive takeaway in that women are 31% more likely to feel comfortable talking about health concerns with their colleagues – suggesting a shift toward more open and supportive workplace conversations.

Femtech startups are tackling the stigma around women’s health

But while colleagues may offer a listening ear, the general taboo around women’s health is still present, making it difficult for many to get the support they need.

Overall, 60% of women in the UK — including those within the workplace — believe that their health issues aren’t taken seriously. 

This ongoing problem has sparked inspiration for femtech startups. Femtech is an industry term for software and services that use technology to tackle women-specific health issues such as menopause, menstruation, and pregnancy.

New femtechs are cropping up with solutions to help women take charge of their health and bridge the gaps in support and care; including our own Startups 100 alumni.

They include Hormona, which helps women manage their hormonal health. Founder Karolina Löfqvist established the business after being repeatedly dismissed by doctors over her own health issues. She now seeks to fix the “broken” system in women’s healthcare.

Meanwhile, Katy Cottam, founder of Luna Daily, is fighting the stigma through its microbiome-friendly skincare products and its mission to normalise conversations on women’s intimate health.

What should businesses do to help?

Government data shows that 7% of working-age people were inactive between December 2023 to February 2024 due to long-term sickness; highlighting the importance of supporting employee health and wellbeing. 

Against this backdrop, the fact that many women feel unsupported in their health concerns presents a significant problem for SMEs, which are often particularly vulnerable when faced with staff absences and difficulties in attracting talent in an already tight labour market.

With an evident need to invest in employee wellbeing, here are five ways that small businesses can ensure they are addressing all health issues in a fair and inclusive way:

• Create an open, supportive culture: foster a company culture that encourages conversations about health and wellbeing, including topics like menstrual health, menopause and mental health.
• Offer flexible working: flexible working arrangements or offering remote work can make a positive difference, particularly for those managing existing health conditions or anyone who has regular medical appointments.
• Review your benefits: even basic benefit packages can be tailored for female employees, such as paid maternity leave, extended sick leave for reproductive health or access to mental health resources.
• Improve education: host workshops or share resources that raise awareness about common women’s health issues, both for affected employees and their colleagues.
• Listen to your employees: regularly ask for feedback through anonymous surveys or check-ins, and make sure that female workers have the chance to be actively involved in discussions around workplace policies that affect them.

Commenting on the UK Med research, General Practitioner Dr Alexis Missick, says that open conversations about health are “essential for creating a supportive and productive environment”, and that businesses should ensure that their employees can prioritise their wellbeing without fear of judgement or penalisation.

“Encouraging honest discussions, normalising sick leave, and ensuring access to proper support can help break down harmful stigmas,” Missick comments. “A healthy workforce isn’t just beneficial for individuals — it also leads to stronger, more resilient organisations.”

Any entrepreneur who uses TikTok for business will tell you that it isn’t just a place for funny videos, trending dances, and viral sounds.

The popular social media platform has become a hotspot for small businesses to show off their products and connect with their customers in a way that feels more personal than your average online ad.

And for some businesses, going viral on TikTok has led to some great successes. One small business, Mysterious Bookcase recently opened its first book shop in Bournemouth after its “Blind Date with a Book” marketing campaign blew up on the platform.

It’s a nice story, but far from the only one. From beauty startups to sweet shops, here are six brands that turned likes and shares into serious growth, and what you can learn from them.

1. Made By Mitchell

Before starting his business, founder Mitchell Halliday gained recognition as an influencer by sharing makeup tutorials and tips on TikTok and Instagram. He later established Made By Mitchell in 2020 – selling a lineup of makeup products including his famous Blursh liquid blushes, cream colour palettes and brushes. From the start, the brand quickly gained attention on TikTok for its bold, vibrant products, and its inclusive approach to makeup artistry.

While the products were constantly popping up on users’ “For You” pages, the brand’s success can also be attributed to Halliday’s marketing strategies – most notably his daily stream on TikTok LIVE, where he packed customer orders, often adding a freebie or two as a surprise.

Just three years after launching, Made By Mitchell hit a major milestone by generating $2 million in sales in just one week. This success was followed by a record-breaking achievement in June 2024, when the brand became the first UK beauty business to earn $1 million in a single day on TikTok Shop during a 12-hour live event.

2. Hair Syrup

Like many entrepreneurs, Hair Syrup founder Lucie Macleod’s business journey started from her student accommodation kitchen. Frustrated with her unhealthy hair, Macleod began developing natural, pre-wash oil treatments to tackle dryness and damage.

What started as a personal solution quickly grew into a business as Macleod began sharing her haircare creations with friends and family. She registered Hair Syrup in 2020, and it wasn’t long before her creations started gaining traction on TikTok. As her videos went viral, more people began trying the products, and the brand quickly grew.

Macleod appeared in Series 22 of the BBC TV show, Dragons’ Den this year but was unable to secure investment. However, the appearance ended up boosting the brand’s visibility further, attracting even more attention from customers eager to buy Macleod’s products. 

Today, Hair Syrup is worth £4.5 million, making it a notable success from Dragons’ Den despite the rejection.

3. Little Moons

The beginning of 2021 saw everyone on TikTok raving about Little Moons — a brand that makes and sells mochi ice cream products. While Little Moons was founded in 2010 by sibling duo Howard and Vivien Wong, it wasn’t until TikTok caught on to its products over ten years later that the brand exploded in popularity.

Thanks to TikTok, Little Moons went from a niche treat to a must-try sensation. Influencers and everyday users started posting videos of themselves tasting the product, encouraging others to join in — adding to the platform’s food craze. 

As more people tried the product and shared their experiences, the product became a staple on TikTok, and soon enough, the demand soared – leading to a surge in sales and filling up supermarket shelves across the UK. While the Little Moons trend has quietened down since, Little Moons is worth over £100 million (as of 2022) and its mochi ice creams are sold across major retailers, including Tesco, Sainsbury’s, Waitrose, and Morrisons.

4. Poppin Candy

Everyone loves a sweet treat, and you don’t always have to wait until Halloween or a cinema trip to indulge in some good ol’-fashioned pick and mix. However, brothers Jake and Brad Wilson spotted a gap in the market when it came to getting candy and snacks from all over the world. With this, they founded Poppin Candy in 2021 and started out by building an online store and social media accounts on TikTok and Instagram.

Its strategic use of these platforms contributed to the brand’s rapid rise in success. One of its early TikTok videos, the “Animal Mania Mix” – in which an assortment of animal-related sweets are dumped into a box – garnered over a million views within five hours. From there, the brand capitalised on content around themed candy mixes and platters and its popular “freeze-dried” sweet products.

Poppin Candy continues to post regular content on TikTok and customers love the fun, nostalgic vibes and the chance to get rare or American-style sweets they can’t usually find in the UK. It’s a great example of how a small business idea — mixed with creativity and a bit of TikTok magic — can really take off.

5. Partner in Wine

The UK’s lockdown during COVID sparked inspiration for many to start side hustles, launch small businesses, or even just start a new hobby that they hadn’t thought about before. Inspiration struck Partner in Wine founder, Lucy Hitchcock when she realised there was no stylish, practical way to keep wine chilled for socially-distanced park meet-ups.

With this, Hitchcock developed insulated, reusable wine bottles and tumblers designed to keep drinks cold for up to 24 hours, or 12 for hot drinks. Hitchcock took her idea to TikTok, which quickly gained traction after showing off the product and how they can be used in everyday scenarios, such as picnics and beach trips. 

Hitchcock’s products were a hit from the start. During its early days in 2021, one of her videos went viral, racking up views and sparking a buying frenzy — leading Hitchcock to sell out her products in just a few days. As for today, Partner in Wine is still going strong, having recently launched a new cool bag product, and also boasts over 62,000 followers.

6. Binley Mega Chippy

If you were on TikTok during early 2022, you couldn’t escape the Binley Mega Chippy song. Whether you loved or hated it, it was all over everyone’s “For You” page at the time. What started as just a regular Coventry fish and chip shop suddenly became an online phenomenon thanks to the jingle and a wave of TikTok memes.

Naturally, the chippy’s internet fame drew more customers to its doors and by May 2022, people from all over the world — including France, Portugal, the United States and Australia — had come to see what the hype was all about. Major news outlets like Sky News and even the BBC also picked up the story, adding even more fuel to the chip fryer.

As trends often go, the hype for Binley Mega Chippy died down. While there are no longer queues out the door, the chippy still holds a special place in internet history. The chip shop is still open today, with favourable customer reviews and a steady stream of customers. Binley Mega Chippy might not be viral anymore, but it’ll always be a local legend.

From viral moments to lasting success

These brands show that TikTok isn’t just about 15 minutes of fame — it’s about turning those real moments into real, lasting success. From makeup brands to quirky snacks, these businesses have leveraged the platform to connect with customers, grow fast and stand out.

Whether it’s through creative content, smart marketing or just getting lucky, they’ve all successfully turned viral moments into long-term growth. It’s proof that with the right approach, TikTok can be a true game changer for small businesses.

These stories prove just how powerful social media can be when it comes to growing a business. If you’re ready to tap into it yourself, check our guides to marketing on TikTok and marketing on Instagram for tips to help you get started.

One year on from the UK’s Carer’s Leave Act coming into effect, new data suggests that unpaid carers continue to face limited workplace support in the UK.

Many working adults who need to look after a child or dependent are being forced to use their annual leave to manage their care duties alongside work. 

The research from Seniorcare by Lottie has revealed that the UK ranks tenth in Europe when it comes to its provision for carers.

UK ranks 10th in Europe for carer leave

The UK’s Carer’s Leave Act came into effect on April 6 2024. The act provides carers with up to one week of unpaid leave every 12 months to give or arrange care for a dependant with a physical or mental illness, injury, disability, or old age. 

If the carer is a parent who needs to take care of their child, the permitted leave is extended to 18 weeks. This is counted as parental leave and is separate from the Carer’s Leave Act.

Recent research from Lottie analysed the equivalent leave policies throughout Europe and found that the UK’s offering is paltry in comparison to that of other countries.

Sweden tops the charts with its generous 100 days of paid leave, paid at 80% of the carer’s regular salary. 

In second place is Italy, which offers carers three days of paid leave per month. This may reflect the fact that it currently has one of the oldest populations in Europe, meaning many employees have to take regular time off to take care of elderly relatives.

Germany, in sixth place, takes a flexible approach. It allows carers to take ten days of paid leave and up to six months of unpaid leave if long-term care is required. 

The UK’s Carer’s Leave allowance currently has no mention of paid leave at all, and even its unpaid allowance is stingy compared with some of its European counterparts. 

On the flipside, we slightly outperform Greece, Poland, Belgium, and Finland, which share the eleventh position with only five days unpaid leave. 

Why does it matter?

The lack of generosity in terms of carer’s leave is troubling because the UK is currently experiencing a significant demographic shift as its population ages. This is primarily due to increased life expectancy and declining fertility rates. 

In 2022, 19% of people in the UK were aged 65 or over. This number is projected to rise to 27% by 2072. 

The ageing population could even lead to more employees in the UK caring for elderly parents or relatives rather than for children. But while there has been a raft of reforms to maternity pay and paternity leave allowances, the Government has been slower to bring in new laws that support those who are caring for elderly relatives. 

For instance, new mothers can take up to 52 weeks of maternity leave, whereas carers for elderly individuals are only entitled to one week of leave.

In light of this, it can be an empathetic move for employers to introduce an enhanced carer’s leave package for employees. 

Rewarding your staff with in-demand employee benefits like this can help boost your staff retention, attract top talent, and improve morale for your existing workforce. 

Tips for supporting adult carers in your workforce

This study was conducted by Lottie, the 2025 winner of our Startups 100 Index. Lottie helps families find high-quality, reliable care through its online marketplace of vetted care homes, retirement communities, and at-home care providers. It also offers helpful tools for comparing costs, bringing more transparency to the care options available.

“While the UK has made progress in supporting informal carers in the workplace, our analysis shows there is still lots to learn from other European countries, particularly in terms of paid leave,” says Elliott Winter, Commercial Lead at Seniorcare by Lottie.

To enhance the support available to informal carers in the workplace, Lottie recommends that employers go beyond the basics. 

This could include offering flexible working arrangements, additional leave, and access to mental health resources. 

Creating an internal carers’ network can also help ease feelings of isolation by facilitating peer-to-peer support. Training managers to understand carers’ needs and signpost them to appropriate resources is another practical step.

Finally, employers might also want to consider sharing information about local care services to help staff manage their caregiving responsibilities outside of work.

“With an ageing population, more employees are now balancing work with caring for elderly dependents rather than children, making it more important than ever before for employers to provide meaningful support for informal carers at work,” Winter adds. 

“Looking to neighbouring EU countries, we can learn valuable lessons in flexibility, longer-term commitment and financial support that can progress the way we approach carers’ leave here in the UK,” he concludes.

Is the handshake deal a thing of the past? Possibly, as new research reveals that UK business travellers are losing their appetite for work trips. 

The findings, from global travel risk management organisation World Travel Protection, suggest that in-person client relationship building could be at risk, as more than four in ten employees are less keen on business travel due to the changing world of work.

Below, we explore in more detail the reasons why UK employees may prefer to stay in familiar territory in favour of taking work trips.

No wanderlust for UK workers

The study from World Travel Protection, which was carried out by Opinium, surveyed 500 UK business travellers and found that the majority are falling out of love with travelling for work. 

The top reason was travel disruption and delays, with 74% of respondents citing this as a concern. Rail strikes and other travel disruptions are already putting many workers off commuting into the office. Now, they’re also affecting longer journeys. 

We’ve already seen a fair amount of travel chaos this year, with London’s Heathrow Airport recently being forced to close following a fire. 

Travel across Europe is set to be marred with more disruption over the Easter bank holiday weekend due to strike action. Understandably, this means that business travellers would rather stay put to avoid the headaches of being stuck at the airport.

Furthermore, global instability caused by ongoing geopolitical conflict and terrorism risks putting UK workers off from taking work trips.

When asked, almost half (47%) of business travellers said they feel less safe than they used to, with 60% believing business travel comes with more risks than in the past.

Is it all because of remote work?

It’s possible that the anti-work travel sentiment is also being cemented by the rise of remote work. In the aftermath of the COVID-19 pandemic, some workers are less happy to travel to work. 

While there have been widespread debates surrounding remote work vs. returning to the office, travel chaos may be contributing to the growing population of homebodies. 

The unpredictability of airport security queues, lost luggage, and flight delays might make traveling seem less appealing, especially when much of today’s business can effectively be conducted over Zoom.

Another concern could be the loss of important digital items which are becoming increasingly key in a remote-working world. 

The study shows that the main safety concern for 72% of business travellers is the loss of important belongings such as a business phone, laptop, or passport. 

What employers can do to support traveller safety

While video conferencing may get the job done, Zoom calls aren’t the most effective mode of communication for relationship building. 

Despite its hassles, business travel remains a core pillar of building strong client relationships, networking, and meeting suppliers. With this in mind, businesses should continue to encourage employees to embark on work trips. 

Bosses hoping to send employees abroad should implement a strong duty of care to ensure their safety and pay attention to modern risks. 

For example, managers should pay attention to cybersecurity risks when their employees are working from abroad. Similarly, companies should be mindful about sending LGBT+ employees to less tolerant regions. By taking pre-trip and back-up planning seriously, work trips don’t have to be a cause for concern. 

An alternative approach may be to explore workation policies, which allow employees to travel on their own terms by combining it with time off.

There may be hope for UK businesses amid President Trump’s trade war, thanks to a government-backed financing scheme worth billions.

On Sunday, a new package was announced that will enable UK Export Finance (UKEF) to provide £20bn in financing support for firms affected by inflated US tariffs. 

As part of the package, the British Business Bank (BBB)’s will allow eligible small businesses to borrow up to £2m through its Growth Guarantee Scheme (GGS).

The extra funding may be especially beneficial for those who supply retailers, healthcare firms, and car manufacturers; three sectors hit hard by Trump’s tariffs.

Below, we’ll provide a detailed explanation of the funding, including eligibility criteria and application instructions.

What is the Growth Guarantee Scheme?

In case you missed it, Trump sent the global stock market into turmoil by imposing a minimum 10% tariff on all US imports on what he called “Liberation Day”, on April 2.

The move was met with widespread outrage. China was hit with one of the highest tariffs but struck back by ordering retaliatory tariffs for the US of 125%. The ongoing chaos resulted in a global market downturn and realistic fears of a recession. 

After days of uncertainty, Trump was the first to break, by announcing a 90-day pause for countries affected by the tariffs on April 10. All countries, including the UK, will now pay a 10% “universal tariff” on all goods exported to the US. In addition, certain tech and electronics products will be exempt from tariffs. This decision has encouraged stock markets to rise, including the UK-based FTSE 100.

That said, UK businesses exporting goods to the US will still feel a pinch. On Sunday, the Government began encouraging affected small businesses to apply for the new funding from the Growth Guarantee Scheme, to help with cash flow issues.

Chancellor Rachel Reeves announced the scheme, saying, “The world is changing, which is why it is more important than ever to back our world-leading businesses and support them to navigate the challenges ahead.”

The new package offers a total of £500m in additional lending capacity, with businesses able to borrow up to £2m per business group. 

The funds can be used to mitigate disruption caused by the tariffs, such as managing cash flow. Terms vary from three months to up to six years.

Are you eligible?

Full eligibility rules have not yet been announced for the new funds, although the BBB has said it will release further information on the initiative soon.

However, here are general requirements that small businesses applying to the Growth Guarantee Scheme must fulfil:

• Your business must have a turnover of no more than £45m, including business groups
• You must be UK-based and generate more than 50% of your income from trading activity unless you are a charity or further education institution
• You should not be in real financial difficulty, such as undergoing insolvency proceedings
• You may need to provide written confirmation that receiving the GGS will not mean that your business exceeds the maximum subsidy you are allowed to receive

It’s also important to consider whether receiving financial help is a sensible decision for your business at this time. The GGS is, after all, a type of debt finance, which is much less affordable during an economic downturn. 

As the UK faces higher interest rates and tighter lending conditions, SMEs are reportedly repaying debt at levels more than 20 times higher than pre-COVID. So, think carefully before taking on extra debt. Even if loans provide breathing room in the short term, they can place undue financial pressure on your business in the long run. 

How to apply

If you’d like to secure financing provided by the Growth Guarantee Scheme, you should approach a GGS-accredited lender to apply. You can go to their website to submit an application, then the lender will independently review your eligibility. To support your application, you’ll need to provide details of:

• Management accounts
• Business plan
• Historic accounts
• Details of assets
• Details of previous subsidy awards

If it transpires that you don’t qualify for the tariff aid, there are other options available to support your profit margins. 

Alternative funding sources for SMEs include small business grants, advisory services, and other forms of government assistance which can help your business thrive despite the adverse economic climate.

The UK job market is facing an uphill battle, as new research suggests that concerns about inflation and interest rates are causing businesses to be cautious when it comes to hiring. 

Research from careers website Reed.co.uk, as reported by LBC, has revealed that job listings have seen a sharp drop over the past year, leaving many jobseekers in a tough spot.

One likely cause is an increase in employer National Insurance Contributions (NICs), which has kept the cost of employment rising, throwing many SME recruitment plans into chaos.

More layoffs, fewer job opportunities

The reign of redundancies from last year has continued into 2025. Major retailers including Aldi, New Look, and Ocado made job cuts earlier this year in efforts to protect profitability. The tech sector has been a continuous source of layoffs as well, with companies like Google, Dyson, and Meta downsizing the workforce considerably in the last 12 months.

The trend looks set to continue, as a Labour Market Outlook report by CIPD reveals that redundancy expectations have increased from 22% to 27% for private-sector businesses.

But while some companies are forced to let staff go in order to lower staffing costs and protect profit margins, the vast majority will opt for hiring freezes. 

In our survey of 531 small business owners, completed at the end of last year, we found that 12% of SMEs report no plans to hire this year.

It’s no surprise, then, that a study by Reed has revealed that new job listings have declined by 23% compared to the previous year. The findings were first reported by LBC. 

What’s behind the hiring freeze?

One of the main causes behind the decline in job adverts is the rise in the employer NIC rate — from 13.8% to 15% — which came into effect last Sunday, on April 6.

The change has placed significant financial pressure on SMEs, with many turning to cost-cutting measures to stay afloat. One report by Personnel Today found that 46% of employers believed that the NIC increase would impact hiring plans. 22% also cited limited budgets due to NICs as the reason for freezing or delaying hiring.

What’s more, the increase in the National Minimum Wage (NMW) has made hiring low-income staff more expensive. Combined with ongoing economic uncertainty and rising prices, it’s no wonder that businesses are hesitant to commit to long-term hiring.

The workplace model could also be a factor. Rent and utility bills are two business overheads that have increased the most in the past half decade. 58% of fully office-based companies told us they had made layoffs to streamline costs in 2024, versus only 45% of remote firms.

How should SMEs respond?

While smaller firms may not be able to afford to hire new staff right now, talent remains crucial to business growth and keeping up in a competitive market. After all, in our survey of SME leaders, 52% of businesses reported that a talented and motivated workforce was a key contributor to their success last year.

And let’s not forget to factor in the skills shortage either. While it’s a decrease compared to last year, 76% of employers reported difficulty in filling roles due to a lack of talent. 

With hiring off the cards, now is a good time for businesses to evaluate their employee benefit packages and seek out clever, cost-efficient ways to retain, not recruit, staff. 

These don’t have to break the bank either. Perks like flexible working, in-house training opportunities, or the option to work from anywhere can go a long way to keep skilled workers around. Plus, it won’t hurt to attract the right candidates when hiring picks back up.

The road ahead

The UK jobs market is going through a rough patch. With overwhelming economic and financial pressures, it’s a good time for businesses to take a step back and think about what they really need to grow, and how to hang on to the people who can make that happen.

As things settle, the businesses that focus on looking after their teams and offering real value for employees will be the ones that come out on top.

The UK’s struggling travel industry is to be given a shot in the arm, as part of new measures to cut red tape for local hotels, restaurants, and pubs.

On Monday, the Government unveiled its Plan for Change. It aims to cut “outdated regulations”, allowing local firms in tourism, hospitality, and leisure to collaborate directly with each other to offer cheaper breaks, a win-win for holiday goers and small businesses. 

Minister for Employment Rights, Competition and Markets, Justin Madders, said: “These common-sense changes will help small firms, boost British tourism, and give families more choice when booking a staycation. More options, better value, and a stronger UK economy.”

The news comes as the holidays sector is on its last legs. Over the weekend, a campaign group began calling for urgent intervention to protect SMEs, warning that domestic holiday trips could this year drop by almost a third this year due to the cost of living crisis.

What’s in the Government’s new holiday package?

Since July 1st 2018, the Package Travel and Linked Travel Arrangements Regulations has set strict stipulations for organisers of package holidays. These aim to provide sufficient security for repatriations and refunds in the rare event of their own insolvency.

However, the Government has decided that the complex legislation is creating barriers for holiday providers to offer competitive deals to customers.

So far, details are thin on exactly what actions will be taken. But according to a government press release, the new plans will help businesses by making it quicker to fix problems with suppliers and easier to protect customer payments if a third-party provider goes bust.

Combined, this should allow small businesses to work together on experiences, giving consumers better value and supporting growth across the tourism sector.

For example, a B&B will be able to offer its customers a discount at a local restaurant. Or a Welsh campsite may be able to bundle in surfing lessons. 

Under current regulations, setting these partner deals up would require reams of paperwork for small firms, creating admin costs that may often be passed down to the customer. It’s hoped that the new changes will encourage Brits to stay local for their summer holidays.

Too little, too late?

The Government’s latest announcement may come too late for affected small businesses. Like fish and chips at the seaside, the UK holiday industry has taken a battering. 

During COVID, the sector enjoyed a surge in demand as lockdown stopped Brits from going abroad. But five years on, the trend has now reversed, as rising prices send many consumers hunting for cheaper package deals from providers based abroad.

A report by industry group, Out & About Live estimates that domestic trips in the UK have fallen by 32% in the past three years, from 42.3 million in 2022 to just 28.8 million by 2025. The body has launched a national campaign, Back British Holidays, to address the problem. 

Spokesperson Daniel Attwood told the Express that campsites are being particularly hard hit, adding “The decline has been much, much more significant than anybody expected. We’re at a point where if action is not taken, we’re going to start to see businesses going under.”

With many companies having paused hiring due to the increasing cost of employment,  closures could have a big impact on the unemployment rate. Currently, the sector reportedly employs 300,000 direct jobs, along with three million workers indirectly employed.

Banking giant NatWest Group has this week announced a minority investment in Yonder, the fast-growing credit card that offers rewards tailored to customer lifestyles and preferences. 

Yonder has thrice appeared in the Startups 100 Index, our list of the fastest-growing new companies in the UK. The platform placed third this January, fresh off the back of achieving a nine-figure valuation at the end of last year.

With NatWest’s support under its belt, the fintech is set to grow further by scaling its operations and continuing to disrupt the credit card market.

Who is Yonder?

Yonder is a London-based fintech that was founded in 2020 by banking experts Tim Chong, Theso Jivajirajah, and Harry Jell. It offers an experience-based credit card for its audience of young professionals (or “yuppies”), who can earn points to use on dining out, entertainment, and even flights.

Yonder’s features have chimed with its Millennial and Gen Z target audience. As of 2024, it boasts over 20k users across UK cities including London, Manchester, Bristol, and Bath. 

As a challenger credit card, Yonder rivals other major players like Monzo, and has become a rising star in the fintech world.

Alongside its mission to put the customer first, Yonder’s simplified sign-up aims to help those who may not have a credit score. This focus on financial inclusion was inspired by its own founders’ struggles to access credit when they first emigrated to the UK from Australia.

What does this investment mean for Yonder?

NatWest is one of the UK’s largest banks with over 19 million customers. The investment will help Yonder to scale at speed, enabling it to draw on NatWest’s banking expertise to disrupt the credit card market.

Details of the minority investment have not been disclosed. However, the new cash comes after Yonder secured £23.4m in September 2024 via venture capital (VC) funding, taking its overall valuation to £100m.

Commenting on the new investment, Tim Chong, co-founder and CEO of Yonder, says: “We’re thrilled to welcome NatWest as an investor in Yonder. Their expertise and insights will be invaluable as we continue to grow and scale our platform.

“Together, we can redefine the future of consumer credit and deliver tailored financial services that meet the unique needs of our users.”

Through the partnership, NatWest will also gain access to Yonder’s customer insights, which it says it will use to ramp up its efforts on personalised rewards, while staying on top of emerging trends with some of its most important customer groups.

“Today’s consumer wants financial experiences that are personal, easy, and that seamlessly integrate into their daily lives,” Ladi Greenstreet, Head of Strategic Investments at NatWest Group comments. 

“Our investment in Yonder reflects our belief in delivering better lifestyle experiences with financial tools that resonate with customers’ personal goals and aspirations. We’re looking forward to exploring new ways to deliver rewarding and responsible financial interactions that align with our customers’ evolving needs.”

NatWest bets big on fintech

Led by NatWest’s Innovation and Partnerships team, the bank’s minority stake in Yonder marks a key milestone in its ongoing efforts to partner with pre-seed companies or those looking for series funding.

The banking giant also recently introduced five pre-Series A startups to its Fintech Growth Programme, giving them access to resources, expertise and networks to help them grow and scale sustainably. 

This includes Tunic Pay – another Startups 100 alumni – which provides a trust infrastructure to banks and fintechs to prevent scams and protect real-time transactions.

Sandi Royden, Head of Retail Banking Customer Propositions at NatWest said: “Our customers’ expectations are rightly changing all the time and it’s important we continue to understand their needs, personalise and deepen our positive customer experiences – which is the core way we think about innovation, engagement and proposition design as a bank.”

The UK has a thriving startup ecosystem, so it’s no surprise that many non-UK residents want to move to the country to start a business.

The problem is that the UK’s immigration process is complicated and time-consuming. Among the long list of requirements, you usually need to be in full-time work or study to get approval for a visa.

But for entrepreneurs, there is a shortcut. The Innovator Founder visa is the ideal way to get your business off the ground and capitalise on the many venture capital (VC) firms and accelerator programmes we have to offer. 

Below, we’ll explain everything you need to know about the Innovator Founder visa, including its requirements, how to apply and tips to prepare for the endorsement interview.

What exactly is the Innovator Founder visa?

The Innovator Founder visa (previously called the Innovator visa) is for entrepreneurs who live overseas but want to start an innovative business in the UK. Successful applicants can reside in the UK for up to three years (with the opportunity to extend for another three years).

In order to be accepted for the visa, your business idea must be entirely new. You will not be eligible for the programme if you are joining a company that is already trading.

According to government guidelines, to be eligible for this visa, your business must be:

• Innovative: an original business idea that stands out in the market
• Viable: your business has strong potential for growth
• Scalable: you must provide a detailed business plan that shows how your new venture will create jobs and expand into national and international markets

What makes a business “innovative” is somewhat subjective. But the government website defines it only as something that is “not being done by anyone else”. That might mean you’re using new technology, or just applying it in a different way.

For example, the UK has become the focal point for the developing Artificial Intelligence (AI) sector, with many AI startups raising funding in the UK in the last year.

Given the UK government’s AI Opportunities Action Plan to invest further in the industry, overseas founders may have a good chance of obtaining the Innovator Founder visa if they can prove that their products or services will utilise AI. 

What are the fees and how long does it take?

In terms of fees, the Innovator Founder visa costs £1,191 per person if you apply outside the UK, and £1,486 if you apply to extend or switch your current visa. 

You can also apply for “priority service” for a faster decision, although this costs an additional £500 on top of your application fee.

As with other visas, you’ll be required to prove your identity via relevant documents (more on this below). Once your paperwork is submitted, you’ll usually get a response within three weeks if you’re outside the UK, and eight weeks if you’re currently residing in the country.

What you need to apply for the Innovator Founder visa

Before applying for the Innovation Founder visa, there are several important steps you’ll need to complete to demonstrate that your business is viable, well-planned and that you’re personally prepared to launch and sustain it in the UK.

1. Endorsement

Before applying for the visa, applicants must first have their business proposal assessed by an approved endorsing body (usually a government-run programme). 

The endorsing body will require evidence that sufficient funding is in place to support the venture, along with details of the source of those funds. If they decide your business is eligible, you’ll receive an endorsement letter to support your application.

After 12 and 24 months, you’ll need to check in with your endorsing body to prove your startup is making headway. Fall short, and you may need to reapply to lock in a fresh endorsement before the current one times out. 

2. A detailed business plan

Every company needs a business plan. This is a document that should clearly state your intentions and ambitions. It should include:

• Details of your business idea and the unique selling point (USP) it offers
• Information on your products/services (including your pricing strategy)
• An understanding of your target market and competitors
• A cash flow forecast, with details on your incoming and outgoing expenses
• An explanation of your day-to-day activities (e.g. how your business will operate, how you’ll sell to customers, and who your suppliers will be)

While statistics and evidence are important to endorsing bodies, don’t forget to show your passion for your business through your mission statement and core values.

3. English language requirements

You’ll also need to provide evidence of your English language knowledge, proving that you can read, write, speak and understand English to a qualified level.  

4. Sufficient funds

Endorsing bodies will need to know that you have enough money to fund your business, and where it’s from. You’ll need to have at least £1,270 in your personal or business bank account for 28 consecutive days before you either apply, extend, or switch to the Innovation Founder visa. You cannot use money generated from investment funds to support yourself.

How to apply for the Innovator Founder visa

Once you’ve been approved by an endorsing body, you’ll need to complete the online application form.

You can either use the “UK Immigration: ID Check” app to scan your documents, or have your biometrics (fingerprints and photo) taken at a visa application centre. Here’s a list of documents you’ll need to complete the process:

• Valid passport or other document that proves your identity and nationality
• Bank statements to prove you have enough personal savings 
• Proof that you meet the English language requirements
• Tuberculosis test results (if applicable)

If your supporting documents aren’t in English, you’ll need to provide a certified translation.

Can I bring my family with me?

If you have a partner and/or child, your family can also apply for the Innovator Founder visa as your ‘dependents’, as long as they can afford to look after themselves when they join (your partner will also be able to work when they arrive).

In addition to the £1,270 you must have to support yourself, you’ll need:

• £285 for your partner
• £315 for one child
• £200 for each additional child

How to prepare for your endorsement interview

You should treat the endorsement interview and application like a business pitch. And much like how you’d pitch to investors, preparation is key to ensuring you get the best possible result. Here are a few tips to help you out:

1. Understand the criteria

Remember – your business needs to be innovative, viable and scalable to be eligible for the Innovator Founder visa. For this, you’ll need to explain how your idea is original and can meet a new or existing market need, can realistically be delivered, and if there’s a potential for job creation and growth into international markets.

2. Know your business plan

Given how important this document is, you should expect questions about your business plan. Practice explaining in a clear and concise manner the problem you’re solving, your target market, your business model, and financial forecasts.

Additionally, make sure to research the endorsing body, such as the sectors they focus on and what businesses it has supported before.

3. Prepare for common interview questions

For this, you should prepare your answers beforehand so that you’re not caught off-guard. Common interview questions that you’ll likely be asked include:

• What makes your business innovative?
• How is your solution different from existing ones?
• What is your competitive advantage?
• How do you see your business progressing over the next three years?
• What’s your timeline for growth?
  

4. Bring supporting documents

They’re not explicitly required, but you may also want to bring some supporting materials along to the interview in order to strengthen your case, such as:

• Financial projections
• Product prototypes or demos (if applicable)
• Testimonials or letters of support

Ready to launch in the UK? Check out our guide to starting a business to help you set up successfully and hit the ground running.

There’s yet more bad news for SMEs on the financial front as the new tax year rolls around.

As of April 6, HM Revenue & Customs (HMRC) has reportedly increased the interest rate paid on late tax payments in a bid to encourage self-assessment taxpayers to pay on time.

In this guide, we’ll break down the changes, why it matters to businesses, and offer practical advice to avoid facing penalties.

HMRC justifies rate change, but is it fair?

According to investment platform AJ Bell, the key change is that the interest rate for late tax payments has increased from 7% to 8.5%. This adjustment will impact the 12 million taxpayers who file self-assessments, resulting in higher costs for those who miss payment deadlines.

In a press release published in February, HMRC stated that its interest rates aim to be fair, explaining that “the late payment interest rate encourages prompt payment.” It argued that the repayment interest rate compensates taxpayers who have overpaid.

However, the late payment rate is currently over twice as high as the repayment rate, which stands at 3.5%. This disparity means that taxpayers pay much more interest on late payments than they receive on refunds, raising concerns about fairness.

How should SMEs respond?

While it’s not exactly good news, the new rates are at least avoidable if you stay on top of upcoming tax deadlines.

To start, it’s important to improve your record-keeping. By establishing a reliable, HMRC-compliant tax management system that suits your business, you can ensure that your self-assessments are conducted accurately.

For example, accounting software can automate much of the tax return submission process for you, making it less time-consuming and reducing the likelihood of errors.

Another smart move is marking important tax deadlines in your calendar. This way, you’ll avoid the late payment interest rates altogether.

If you’ve not submitted a self-assessment tax return before, the deadline for letting HMRC know that you need to is by midnight on October 5 2025.

If you’re sending your tax return on paper, then you must do so before midnight on October 31 2025. 

Online self-assessment taxpayers have more time, with the deadline set for midnight on January 31 2026. But if you want HMRC to automatically collect tax you owe from your wages and pension, you must submit your online return by 30 December 2025.

If all of this sounds a little overcomplicated, you may prefer to seek professional advice or hire an accountant to take care of tax returns for you.

Finally, you should implement good cash flow management to ensure that you have enough cash to fulfil tax repayments and avoid the hiked late payment interest rates.

Compliance, compliance, compliance

In addition to the increased interest rate, last month’s Spring Statement confirmed the recruitment of an additional 500 tax compliance officers by HMRC, on top of a further 5,000 previously announced in the 2024 Autumn Budget.

The combination of higher late payment rates and increased HMRC enforcement heightens compliance risks for SMEs. Businesses nationwide should be vigilant about meeting deadlines to avoid incurring additional financial burdens.

Seb Maley, CEO of tax insurance firm Qdos, warns: “The takeaway here is that compliance is arguably more important than ever.

“Forget to file or pay your tax bill and not only will you pay the price financially, but you also run the risk of being investigated by HMRC – which can be a costly, altogether stressful ordeal without the right protections in place.”

Social media platforms have long evolved beyond being simply a source of memes and online commentary. In 2025, Instagram, TikTok, and Facebook are now considered part of the ecommerce industry. This fusion of social media and online selling is aptly titled ‘social commerce’.

Last year, research from money.co.uk finds an estimated 16.2 million social commerce users generated £7.3 billion in sales. So it’s safe to say, business is booming.

Social commerce allows online sellers to offer their customers an integrated shopping experience as they scroll. Sellers can use influencer marketing to advertise their products with reviews and tutorials, while buyers can discover and purchase new products without even having to leave the app.

The approach can feel more organic than traditional ecommerce and has already completely reshaped consumer-brand interactions.

Below, we’ll explain the sectors that are leading the charge in social commerce, and which are the best platforms if you want to get started yourself.

Unveiling the top performing industries

A recent study from money.co.uk showed that beauty and wellness is the leading social commerce sector in the UK. The study analysed user, industry, platform, engagement insights, and more to assess the UK’s social commerce market.

Nearly half (46%) of all UK social commerce users in the beauty and wellness industry made a purchase in the last 12 months. It’s not surprising, since there is an increasingly large population of beauty and wellness influencers in the space.

Many successful beauty startups, such as Glossier, have used customer advocacy to promote items, relying on organic testimonials to give users a taste of what their products look like on real-life wearers.

money.co.uk reports that Clothing and Footwear is the second most popular category for social commerce shoppers. In the last 12 months, 40% of online shoppers made a purchase in this category.

Fashion is a popular topic in social media content in the format of OOTD (Outfit of the Day), styling, and trend forecasting videos. This gives brands tons of opportunities to plug their products organically.

Third in line, we have Home and DIY as one of the most successful categories for social commerce. With 24% of users making purchases in this category in 2024, it’s clear that how-to and home-style inspiration videos are working in brands’ favour.

What are the best platforms for social commerce?

The best platform for your social commerce strategy may differ depending on your goals, brand, and products.

TikTok’s built-in online store, TikTok Shop lends itself particularly well to viral trends. This means it can be great for relatively unknown brands to gain visibility. By latching onto current meme formats, brands, online sellers and TikTok dropshippers can attract new customers. Furthermore, users can click ‘buy’ without even leaving the app.

While TikTok focuses on fast-paced, viral content and direct in-app purchases, Instagram has a more curated approach. The platform helps brands create a visually appealing online store and champions a lifestyle-driven shopping experience with features like shoppable posts and tagged products. This works well for businesses that want to post more aspirational content to build their brand.

If you’re stuck between the two, you could use your target market as a guide. The money.co.uk study finds Instagram is the top social commerce platform for Millennials, with 37.3% of respondents aged up to 34 making a purchase through the platform. Gen Z’s favourite is TikTok, with 43% preferring the lip-syncing app to Instagram.

Turning trends into transactions

It’s clear that social commerce is on the rise; how can small businesses get involved?

Joe Phelan, from money.co.uk, says businesses need to move with agility to keep up with the rapid development of social selling. “Given the fast-paced nature of social commerce, businesses need to be agile to succeed. The ability to quickly respond to trends and engage with both existing and potential customers is crucial,” he says.

It’s key to properly understand user behaviour and get trends right, especially if you’re attempting to crack a younger market. Experimenting with social media, particularly TikTok, for the first time can feel like unchartered territory. Hiring dedicated social media management can help you nail the tone of voice, timing, and content formatting necessary to seamlessly engage with social media users.

It’s also important to be clear about your brand values when deciding to work with third-parties, such as influencers. You’ll want to choose carefully when establishing partnerships, as they will act as a temporary face of your brand.

Ultimately, social commerce is an exciting development for SMEs to approach sales more creatively. The future of ecommerce is undeniably social.

Many people assume you need six figures to start a business. But thanks to evolving technology and the modern world of work, it’s easier than ever to launch a new venture.

It’s fortuitous timing. In today’s poor economy, accessing the funding you need has also become more challenging than ever. 

If securing financial support now proves to be difficult, a great option is to monetise the skills you already have. This will allow you to launch on a shoestring budget. Say, £1,000?

Whether you dream of one day running a fully-fledged limited company, or sticking to a side hustle for extra cash, here are nine business ideas you can get going with for just £1,000.

1. Opening a market stall

Not got £30,000 to open a brick-and-mortar shop? Setting up a market stall is a cost-effective way to build your retail brand while connecting directly with customers. 

Whether you’re selling handmade goods or fresh produce, a market stall offers aspiring shop sellers the chance to engage directly with an audience, giving them immediate customer feedback and insights to further identify their target market. 

The cost to set up a market stall largely depends on factors like location, market type (e.g. permanent, seasonal, or event) and stall size. Fees usually vary between £20-£100 per day, though. Research the best markets to sell at near you for a more specific cost breakdown. 

2. Salon chair rental

Starting your own salon and hairdressing business costs a lot, especially when factoring in expenses like renting a space, salon equipment, stock and insurance. However, there’s a cheaper alternative: renting a hairdressing chair. 

Chair rental involves paying a weekly or monthly fee to work in an established salon, rather than renting your own space – making it a flexible and budget-friendly way to build your client base, set your own hours, and keep more of your earnings without salon overheads.

The average cost to rent a salon chair depends on location, demand, and included amenities, but typically ranges from £50-£250 per week. The three main options to rent a salon chair are:

• Fixed rent: the salon charges the business a fixed rate every month to set up within their establishment.
• Percentage agreement: instead of charging rent, the salon takes a percentage of the hairdresser’s earnings.
• A bit of both: some salons use a hybrid model, charging a fixed rent while also taking a percentage of earnings.

3. Dropshipping

Dropshipping is when you sell products without holding any inventory. Instead of buying stock upfront, you partner with a supplier that handles storage, packaging and shipping. When a customer places an order on your online store, you purchase the item(s) from the supplier, who in turn ships it directly to the customer.

The main benefit of dropshipping is that there are low startup costs and you only have to buy products when you make a sale. Dropshipping  can easily be done on a budget, with the main costs including:

• Setting up an ecommerce platform: up to £20+, depending on the chosen platform.
• Marketing costs: paid ads (£5-£20 per day), email marketing (£10-£50 per month), search engine optimisation (SEO) (£50-£200 per month).

4. Dog walking

If you love dogs and enjoy taking your own out for walks, then a dog walking business is a flexible and low-cost way to earn money, all while spending time with your furry friends. 

Moreover, it offers a valuable service for busy pet owners who may not have the time to walk their dogs regularly, as well as elderly or disabled individuals who might struggle to do so themselves. The main costs to consider for a dog walking business include:

• Insurance: public liability insurance (around £80-£150 per year) to protect against accidents or injuries involving the dogs in your care.
• Equipment: leads, harnesses, treat pouches, poo bags, and a first aid kit.
• Transport: if you plan to cover a wider area, you might need a car or van, plus fuel and insurance costs.

5. Online services

The beauty of today’s digital age is that it’s easier than ever to find services for just about anything — from freelance work and online coaching to virtual assistance and digital marketing. And if you have a specific set of skills, you can turn them into an online business, offering your expertise to clients around the world with minimal startup costs. 

There are many options to explore when setting up online services, including freelance copywriting, graphic design, social media management, web development, SEO and more.

While an online business is relatively low-cost compared to traditional businesses, there are still some essential expenses to consider. These include:

• A website builder (starting from £1.99 per month)
• A payment gateway (usually a percentage of your total transaction fees)
• Accounting software (up to £15 per month)

6. Outside services

On the other hand, if you’re looking for a business idea that involves more hands-on work, there are plenty of low-cost options out there in the real world. Whether you’re interested in working directly with people, or offering services that require a bit of physical effort, there are plenty of avenues you can choose that won’t break the bank.

A few ideas could be running a landscaping business, house cleaning, and handyman services. In terms of cost, you can expect costs for:

• Logistical purchases (e.g. a lawnmower for around £200). You may also need a car/van for transport
• Basic supplies (e.g. vacuum, mop and cleaning products): around £50-£200
• Specialised tools (e.g. drills, saws or plumbing equipment): around £100-£500 

7. Tutoring

If you want to share your skills with others, then becoming a tutor could be right up your street. Whether you want to teach online or in-person, setting up your own tutoring business is both cost-effective and helps others succeed by sharing your expertise.

Having the right qualifications and skills is the key thing. But you’ll also need to consider a few upfront costs as well. These include:

• Teaching materials: books, video conferencing software, or other educational resources (around £20-£200)
• Insurance: professional indemnity insurance or public liability insurance to protect yourself and your clients (around £50-£150)
• Technology and tools: if you’re tutoring online, you’ll need a computer with a webcam for around £100 (as well as a reliable internet connection) 

8. Ecommerce selling

Setting up a traditional retail store is a heavy investment. As we’ve already covered, starting a market stall can be a good way into the industry.  But thanks to the rise of ecommerce businesses, an even easier option is to start an online store.

This business model typically has minimal upfront costs and enables sellers to reach customers from all around the UK, within the comfort of their own home.

Even if you don’t feel like setting up your own website, there are plenty of platforms where you can sell online for a cheap cost, including Amazon, eBay, and Etsy. These platforms provide access to a large target audience without the need for a complex setup.

Key costs to consider include:

• Subscription fees: the average cost of a website builder for a small business can range from £1.99 to £259 per month.
• Listing fees and transaction fees: for example, Etsy charges UK sellers 16p per listing, as well as a 4% + 20p processing fee per transaction.
• Payment processing fees: payment processors like PayPal or Stripe charge a transaction fee of around 2.9% + £0.30 for each sale.
• Insurance: if you’re shipping valuable items, you may need to add insurance (£1-£5 per item depending on value).

9. Virtual assistant business

A virtual assistant (VA) business involves providing administrative, technical or creative support to clients remotely. This means you offer services that help businesses or entrepreneurs manage their tasks, without the need for them to hire a full-time employee.

Not only is investment minimal, but it also offers great flexibility and work-life balance, as you can often choose your working hours and location. Plus, as a virtual assistant, you can offer a range of services based on what you’re good at and what you enjoy — whether that’s managing emails, handling social media or creating content.

These are the typical costs you can expect by becoming a virtual assistant:

• Training and certifications: prices for VA courses typically range from £50 to £500, depending on the specialisation (e.g. administrative, social media management, etc.)
• Software and tools: organisational skills are vital for VAs. project management software, communication platforms (such as Zoom or Slack), and office tools (Google Workspace) can cost anywhere from £10-50 per month.
• Insurance: liability insurance to protect yourself from potential legal issues, which costs around £50-£150 per year.

Other costs to consider

While each new business or side hustle comes with different costs, there are essential expenses that apply to all businesses.

1. Business registration fees

Registering your business with Companies House typically involves a fee of around £50-£78. However, this does not apply if you operate as a sole trader. You can find a list of company incorporation and registration fees here.

2. Trademark registration

If you want to protect your business name or logo, you’ll need to register for a trademark. This costs from £40 to £200 and must be paid for via the government website.

3. Domain name

Securing a website domain name will help you establish a professional online presence, build credibility, and make it easier for customers to find you. Depending on the hosting provider you choose, costs can start from as little as £2.50 per month.

4. Business website

Nowadays, you don’t have to spend a fortune to build a website or hire a professional to do it for you. Many website builders offer a cheap, easy-to-use platform where you can create a professional-looking website without coding or design skills needed, and without having to fork out a lot of money.

While there are some free website builders out there, costs for extra features can cost up to £260 annually, depending on the platform’s pricing plan.

5. Office space (if applicable)

If you plan to use office space to run your business, costs like rent, building maintenance, security, heating, and other services can quickly add up.

Alternatively, if getting a commercial lease for an office space is out of your budget, you can look into coworking spaces. These offer flexible, cost-effective options where you can rent a desk or private office on a monthly – or even daily – basis. They also come with perks like high-speed internet, meeting rooms, printing services and even free tea and coffee.

Ready to get started?

Starting a business doesn’t have to cost a fortune, as there are many ways you can get going with as little as £1,000 — especially if you focus on low-overhead ideas, use existing skills, and make the most of free or affordable online tools.

That said, if you do want to think bigger, our article on small business grants lists all of the latest funding grants that are available in the UK, as well as how to apply. 

There are also grants available for women-led businesses, offering extra support to help female entrepreneurs get their ideas off the ground and grow their ventures with confidence.

You’ve probably seen the headlines. Global stock markets have plummeted following escalating trade tensions between the US and, well, the rest of the world. This morning, the UK’s main stock market, the FTSE 100, dropped to a one-year low.

It’s a confusing situation, and investors, businesses, and individuals with pensions or personal shares are naturally feeling anxious. Although UK SMEs don’t directly participate in the stock market, they will still face indirect effects. Business owners should take steps to protect their profit margins during this period of market volatility.

Below, we’ll explain the current market situation in simple terms, and offer some straightforward, actionable advice to help you weather the storm. 

Understanding the market meltdown and its causes

The FTSE 100 has taken a hit in recent days. The index, which measures the value of some of the UK’s biggest companies, has fallen by 6%. That means it’s the lowest it’s been since February 2024. 

Across the globe, there has been widespread market volatility, with Asian stocks plunging particularly dramatically. The main cause of the market chaos is US President Trump’s introduction of new trade tariffs on April 2, or what he called “Liberation Day”. 

Tariffs are taxes imposed by a government on imported goods. Last week, Trump raised US tariffs with the aim of ‘making America wealthy again’. Tariffs are charged to the companies bringing the goods into the US, and paid to the US government.

The UK will face the 10% baseline tariff, while those in the EU will be charged 20%. The highest rate of 50% will apply to 60 countries, including Malaysia, India, and Vietnam. The tariffs are set to take effect in days.

There will also be higher charges placed on specific imports, including 25% on steel, aluminium, and foreign-made cars, which UK manufacturers will need to pay.

The news has been met with widespread disdain. Generally, tariff increases are not a good thing for the global stock market, as they increase prices for consumers and reduce the flow of trade. They can also induce retaliatory tariffs, further destabilising the situation. 

China has already announced a 34% tariff on imports from the US, matching Trump’s rate for Chinese imports to the US.

The best next step would be “concrete action” said Kathleen Brooks, research director at XTB. “The best panacea for financial markets right now would be a pause or reversal from the US on its tariff programme,” she told The Guardian.

How market volatility impacts SMEs (and how to respond)

While SMEs may not be directly invested in the international stock market, they should still prepare for the fallout of the market’s volatility. 

Business owners need to consider how a fall in the stock market might impact their bottom line, especially following previously announced tax hikes. 

Stock market crashes are often followed by a recession, which can drastically reduce consumer confidence and limit spending. The cost of borrowing also becomes more expensive as interest rates rise, which could result in cash flow issues across the supply chain as more companies default on payments.

In addition, supply chain disruptions may become more common, especially if key suppliers are at the mercy of international markets or faced with increased costs. Fluctuations in currency can also affect the cost of imported goods and materials, which will further tighten business profit margins. 

And finally, larger organisations may be more likely to delay all-important investment decisions or pause new project kickoffs. This is bad news for smaller businesses and startups, whose success may be riding on successfully pitching to investors.

While this is a lot to digest, there are proactive steps SMEs can take to mitigate the potential risks. By reviewing and diversifying supply chains, firms can reduce the impact of delays or price hikes. It may be wise to look into alternative or local markets to identify new revenue streams that are less directly impacted by global stocks. 

As consumers will be holding onto their pennies during this time, it’s as important as ever to maintain strong customer relationships. Likewise, careful cash flow management during this time will be crucial to maintaining financial stability. 

Another tip is to explore flexible financing options, which may provide breathing room to both businesses and consumers.

Finally, if you’re feeling particularly under strain financially, we recommend seeking professional advice and staying informed on economic developments. This can help you make confident decisions and make the most of the help available. 

How is the Government responding?

As it stands, the UK has got off lightly from Trump’s global tariff tirade. Still, the planned changes will still bring knock-on effects across the entire global supply chain. How does the Government plan to respond? 

On Sunday, Prime Minister Sir Keir Starmer announced that he was prepared to use industrial policy to “shelter British business from the storm”. 

For one thing, it’s expected that announcements on public-sector investment into the UK industry and infrastructure will come sooner than planned. Entrepreneurs should stay tuned for that in the coming days and weeks ahead. 

But the global economic landscape remains uncertain, and the full impact of these trade tensions is yet to be seen. SMEs must remain vigilant, closely monitoring developments and adapting their strategies as needed.

Tax brackets and responsibilities can be difficult for anyone in the working world to wrap their heads around. But new research suggests even bosses are struggling to make sense of it. 

Somewhat alarmingly, digital payments provider, takepayments has discovered that 31% of sole traders don’t know what tax band their business is in.

With a new financial year starting this Sunday, being unaware of tax obligations can lead to costly penalties. We’ll go through the key tax responsibilities for the self-employed, below.

Understanding tax bands

The tax band you’re liable for ultimately depends on your business structure. Here’s a breakdown of the different tax obligations and what they mean for sole traders: 

Income Tax

A tax that sole traders pay on earnings. The amount you pay depends on your income and tax band. The current rates in England, Wales and Northern Ireland are:

National Insurance

Self-employed workers pay National Insurance Contributions (NICs), depending on profits. You’ll have to pay Class 4 NI if you earn over £12,570 a year. The current rates for NICs are:

• 6% on profits of £12,570 up to £50,270
• 2% on profits over £50,270

You can also make Class 2 NI contributions (£2.50 per week for 2025/26) if your profits are less than the Small Profits Threshold of £6,725. However, as of April 2024, these payments are now treated as voluntary for the self-employed.

Value-added tax (VAT)

Both sole traders and limited companies have 30 days to register for value-added tax (VAT) if their turnover reaches more than £90,000 annually. Once registered, you’ll have to charge VAT on your goods and services and submit VAT returns to HMRC. 

Business rates

Any small business with a physical establishment will be liable for business rates, which is a tax on commercial properties, such as offices, shops and warehouses. 

Business rates are calculated based on the rateable value of a property and are typically paid to the local council. However, some traders may be eligible for Small Business Rates Relief (SBRR) to reduce their costs.

How to make 2025 less taxing

While the rise in Class 1A employer NICs is unlikely to affect the self-employed, small businesses and sole traders who are planning to take on employees this year need to be aware of the changes to avoid any unexpected liabilities. Here’s what you need to know: 

1. Tax deductions

HMRC offers several tax deductions that employers qualify for to offset some of these costs. For example, the Employment Allowance scheme allows businesses to reduce their NICs by up to £5,000 per year, helping to lower their overall tax burden if they have employees.

Other common tax deductions include:

• Business rates relief
• Charge, reclaim and record VAT
• Claim capital allowances
• Self-employed expenses

2. Accurate record-keeping and timely tax submissions

Accurate record-keeping is essential to avoiding any tax-related headaches. Using good accounting software, such as HMRC-approved tools like QuickBooks, Xero, and Zoho Books, can help make the process easier by automatically tracking expenses, generating reports and helping you meet deadlines, such as for Self-Assessment, on time.

3. Seeking professional advice

Sometimes, the best way to stay on top of your taxes is to consult with a tax advisor or accountant. That way, you can get expert guidance tailored to your business, helping you take advantage of available deductions and ensuring you’re meeting all your obligations.

Whether it’s understanding complex tax laws, planning for the future or getting help with filing, professional advice can save you time, stress and potentially money in the long run.

takepayments has developed a Business Tax and National Insurance Calculator on their site, which helps sole traders estimate what their monthly and annual tax payments will be, based on their income and expenditure. 

Tax blindness and its impact on SMEs

takepayments’ study, which surveyed over 400 sole traders and freelancers, also found that nearly half (43%) aren’t aware of the tax rate for their band. Moreover, 34% don’t know the deadline for making any advanced payments towards their bill.

“It’s not surprising that many small business owners are unsure of the legal obligations they have regarding things like tax and VAT,” comments Jodie Wilkinson, Head of Strategic Partnerships at takepayments. “The rules can be quite difficult to understand, especially if you just want to focus on growing your business.”

While sorting taxes can be a tedious task, accurate tax knowledge is essential for SME financial management, cash flow management and investment decisions.

Failing to meet tax obligations can also lead to serious consequences, including penalties for missed payments and even more severe legal actions or fines. HMRC can also impose fines for late filing or payment, with penalties ranging from £100 to higher percentages of the tax owed, depending on the length of the delay.

As the new financial year begins, now is the time for SMEs to take control of their tax obligations. Start by familiarising yourself with your tax band, taking note of key deadlines and ensuring your record-keeping is in order. 

Consider using good accounting software to streamline the process and reduce the risk of errors, and don’t hesitate to seek professional advice if you’re unsure.

The new National Living Wage (NLW) was officially introduced yesterday, increasing the minimum hourly pay for all employees aged over 21 to £12.21 per hour (the National Minimum Wage for under 21s has also increased). 

But many are already urging major retailers to swap out the NLW and pay employees the higher Real Living Wage (RLW) instead. Among them, campaigners are calling on companies like Next, Marks & Spencer, and JD Sports.

What exactly is the Real Living Wage, how is it different from the NLW, and why are campaigners pushing for it now?

What is the Real Living Wage for 2025?

The UK’s Real Living Wage is a voluntary hourly rate that’s calculated to reflect the cost of living, ensuring workers can meet their basic needs without having to rely on government support.

As of April 2025, the RLW is £12.60 per hour (or £13.85 per hour if you’re based in London, to reflect the city’s higher living costs). 

The difference between the National Living Wage and the Real Living Wage is that the NLW is set by the government and is legally enforced. 

In comparison, the RLW is set by the Living Wage Foundation and is completely voluntary.

Why should employers pay the RLW?

Last week, a group of major investors, including Axa, Scottish Widows and Trust for London, began calling for M&S, Next, and JD Sports to offer the Real Living Wage to its employees. The campaign is being led by responsible investment group, ShareAction.

Speaking to The Guardian, ShareAction CEO Catherine Howarth commented: “The UK’s biggest retailers are failing to support their workers with a real living wage, leaving hundreds of thousands of people in the sector struggling to make ends meet,”

“Companies whose workforce can earn less than a real living wage are ultimately harming the vitality and growth of the UK economy, with business models that put pressure on workers, their families and the state by adding to health and welfare costs.”

In low-wage sectors like retail and hospitality, the RLW is naturally beneficial for workers. However, it can also reflect positively on a company’s core values, as it demonstrates a commitment to fairness, employee wellbeing, and social responsibility.

The resolution claims that current pay rates at Next mean that the company isn’t living up to its stated organisational culture where everyone is “treated fairly and with respect”.

For an example of how the RLW can create impact branding, look to Scottish brewery firm BrewDog, which faced criticism last year after dropping its RLW accreditation. 

BrewDog’s then-CEO James Watt claimed it was “necessary” to rebuild the chain’s profitability after a £24m loss. However, staff accused BrewDog of  “abandoning its principles” over the move. 

Employer costs rise this week

Today’s bosses want to reward staff fairly through higher wages. But businesses that do introduce RLW may struggle to sustain it in the long term, especially in industries with tight profit margins. As BrewDog’s controversy proves, introducing RLW only to later withdraw it can damage a company’s reputation more than never offering it at all.

Paying the RLW will be even less feasible for businesses next week, thanks to the rise in employer National Insurance Contributions (NICs), which will come into effect this Sunday 

The tax change has pushed many businesses to reconsider their pay bills and take drastic measures to cut costs, including workplace layoffs. 

Hospitality businesses in particular have struggled with these changes, with only 70% of firms feeling optimistic about growth in the next year; the lowest of any other sector. 

Last November, 200 hospitality bosses warned that the incoming NIC increases would cause “unprecedented damage” and even force some organisations to close completely.

How can I reward staff without raising pay?

With labour shortages still threatening operations at many hospitality businesses, larger restaurant chains are opting to boost their remuneration packages with clever staff benefits, such as discounted meals, cycle-to-work schemes, and referral bonuses. 

If you run a restaurant business and are looking for inspiration, here are some examples of how large employers are rewarding teams without raising pay:

• Gordon Ramsay Restaurants: offers structured training programmes (e.g. chef apprentice programme and wine knowledge training) to progress in the company
• Forza: named the happiest restaurant group to work at in 2024, Forza offers an array of perks for staff, including two mental health days and discounted gym memberships
• Dishoom: offers employees 50% off when dining with friends and family

While the RLW offers better pay, it’s tough for many businesses to take on, especially with rising costs and slim profit margins. And as BrewDog showed, being forced to reel back on RLW accreditation can be damaging to a company’s reputation. 

Increasing wages may not be an option right now, but strategic perks packages can help to keep employees motivated and reduce staff turnover, without costing businesses.