The best UK cities and industries to start up your own business revealed
When setting up a new business, it’s important to have a clear understanding of consumer demand and the level of competition within your chosen niche and local area
To help budding entrepreneurs understand which local businesses are the most in-demand across the UK, SumUp has analysed thousands of data points from the local business environment to find out the level of demand and competition across 25 different business niches.
- Edinburgh is the top location to open a small business, followed by Bristol and Glasgow.
- Carpet cleaning is the most in-demand local service across the UK.
- Beauty salons are the second most sought after business, and are particularly likely to thrive in Manchester.
SumUp determined consumer demand by analysing Google search volume for terms like ‘bakeries near me’ and determined business supply by researching the number of each business type registered in every UK city. The overall best places to start a business were determined by analysing the cities with the lowest level of business supply vs the highest level of consumer demand.
Edinburgh is the best UK city to open a small business
SumUp’s study revealed Edinburgh as the best city in the UK to start a local business. This Scottish city had the highest demand and lowest supply across all niches analysed, receiving an overall score of 7.78. The best business to open in Edinburgh is a bakery, with 9,000 average monthly searches for ‘Bakeries near me’ but just 36 businesses to cater to them.
Bristol follows Edinburgh as the second best city to start a small business in the UK, and Glasgow places third. The table below shows the top five UK cities to open a business based on demand vs. supply:
|Rank||Business||Local Supply vs Demand Score|
Carpet cleaners and beauty salons are the most in-demand local businesses in the UK
While bakeries are the top niche in Edinburgh, the UK’s most in-demand local business overall actually sits within the niche of carpet cleaning. Ranking with a high supply vs. demand index score of 6.50, the odds could be stacked in the favour of entrepreneurs who choose to enter the carpet cleaning market.
Beauty salons rank as the second most in-demand business niche with an overall supply vs demand index score of 6.33, followed by event planners with an index score of 6.15. The full top five most in-demand local businesses across the UK are shown in the table below:
|Rank||Business||Score: Overall Supply vs Demand Index in the UK|
Beauty salons are in high demand in Manchester, with just 93 salons but 720 monthly searches
Though beauty entrepreneurs will find plenty of demand for their services across the UK, there is one city where their business is more likely to flourish.
In Manchester, there are just 93 beauty salons despite 720 monthly searches for ‘Beauty salon near me’, meaning demand for this type of business is very high.
How to see the most success in the small business space
Whilst the niche entrepreneurs choose for their new business does have a bearing on their chances of success, there are also many other factors to consider. To ensure success when setting up a new business, SumUp suggest taking the following steps:
- Put together a detailed business plan, which will help you get prepared and prove useful when approaching investors.
- Figure out how much money you need to set up your new business and secure funding.
- Complete any legal admin, such as getting registered with HMRC and taking out Employers’ Liability insurance.
- Market and brand your business to appeal to your target market and stand out from the competition.
- Ensure you have the right tools and technology for your business to run smoothly such as a card reader that will enable you to accept cashless payments for your small business on your terms.
You can view the full study here: https://www.sumup.com/en-gb/business-guide/in-demand-local-businesses/