How to start an online business: A guide to getting started

Online businesses offer low startup costs, flexible working and access to a global customer base. With the right setup, you can automate key processes and scale quickly. Below is a streamlined guide to starting and growing an online business in London.

Choosing Your Online Business Idea

• Play to your strengths: Use your skills and interests to guide your concept.

• Check demand: Research local and UK-wide trends, competitors and gaps in the market.

• Plan for growth: Prioritise ideas that can scale, such as digital products or subscription services.

• Consider costs: Balance platform fees, tools and inventory with expected revenue.

Key Steps to Get Started

1. Build a simple business plan outlining your offer, audience and revenue model.

2. Set realistic short-term and long-term goals.

3. Choose a legal structure (sole trader or limited company).

4. Register your business and secure any local licences.

5. Create a professional website that works flawlessly on mobile.

6. Develop a digital marketing plan using SEO, social media and email.

7. Launch and start driving targeted traffic.

8. Build your social presence to grow brand visibility across London and beyond.

Registering Your Business in London

• Pick a memorable name and check availability on Companies House.

• Register as a sole trader or incorporate as a limited company.

• Set up required tax registrations and any relevant permits.

Setting Up Your Website

• Choose a domain that represents your brand.

• Select a platform suited to your needs (Shopify, WordPress, Wix).

• Use reliable UK hosting to avoid downtime.

• Carry out keyword research to improve visibility across London search traffic.

Setting Up Your E-Commerce Platform

• Pick the right e-commerce system based on your scale and product type.

• Offer multiple payment methods for faster checkout.

• Use inventory tools to manage stock efficiently.

• Decide between self-fulfilment or UK-based 3PL providers.

Building a Marketing Strategy

• Define your ideal customer and tailor your messaging.

• Produce high-value content and optimise it for search.

• Use social media strategically — Instagram, TikTok and LinkedIn are strong for London audiences.

• Grow an email list using lead magnets and segment it for better performance.

• Run targeted ads to reach Londoners and retarget warm visitors.

• Partner with local brands or creators to widen reach.

Turning Visitors into Customers

• Prioritise a smooth, fast user experience.

• Use direct, action-based calls to action.

• Test different layouts and headlines to improve conversions.

• Display reviews and testimonials to build trust.

Common Challenges for London Businesses

• Competition: Stand out with a clear value proposition.

• Time management: Use planning tools and outsource where possible.

• Technical issues: Use strong hosting and monitor site performance.

Compliance Essentials

• Follow GDPR and maintain clear privacy policies.

• Understand UK e-commerce rules, returns policies and sales tax requirements.

• Protect your brand with trademarks and copyright.