Hospitality business ideas you can start for under £5,000

33 ideas

Hospitality doesn't always mean buying a restaurant or a hotel. These 33 ideas all have startup costs of up to £5,000, so they suit people who want to test a market without taking on heavy debt.

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5k to 20kOver 20kFrom homeOut and aboutOwn premises
Small guest house bedroom with a breakfast table set for visitors.

Spare-room bed and breakfast

Let a few spare rooms in your own home to tourists and business travellers, with breakfast included.

  • £1k-5k
  • Side hustle
  • From home
18,586 UK companies in this field, 25% registered in the last 2 years
Tourists sitting aboard a tour boat on calm water.

Boat trip booking agent

Sell other operators' boat trips to visitors through a simple local website, earning commission on each booking.

  • £400-2k
  • Side hustle
  • Online
414 UK companies in this field, 9% registered in the last 2 years
Tour guide leading a small group of travellers through a historic city street.

Local day tours for visitors

Put together and run guided day tours of your area for visitors, using local guides, transport and venues.

  • £500-5k
  • Side hustle
  • Out and about
7,667 UK companies in this field, 33% registered in the last 2 years
Rows of tables and chairs set up in an event hall for a function.

Small-scale catering kit hire from home

Hire out urns, chafing dishes, crockery and glassware for parties and community events from a garage or outbuilding.

  • £1k-5k
  • Side hustle
  • From home
7,895 UK companies in this field, 21% registered in the last 2 years
Travel agent helping a couple plan a holiday at a desk.

Home-based travel agent

Plan and book holidays for friends, family and local people from your own home, earning commission on each booking.

  • £200-2k
  • Side hustle
  • From home
15,731 UK companies in this field, 37% registered in the last 2 years
Neat hotel bedroom with a made bed and soft window light.

Spare room guest stays

Rent a spare room in your own home to paying guests by the night, with a simple breakfast if you like.

  • £200-1.5k
  • Side hustle
  • From home
13,221 UK companies in this field, 18% registered in the last 2 years
Hot air balloon rising over countryside at sunrise with passengers in basket.

Balloon flight booking agency

Sell hot-air balloon flights and gift experiences from licensed local operators through your own website.

  • £500-3k
  • Side hustle
  • Online
7,667 UK companies in this field, 33% registered in the last 2 years
A cosy guest bedroom with a breakfast tray in a small country B&B.

Spare room B&B in your own home

Welcome guests into one to three spare rooms and serve them a home-cooked breakfast.

  • £1k-5k
  • Side hustle
  • From home
18,586 UK companies in this field, 25% registered in the last 2 years
Bartender preparing drinks at a wedding or corporate party.

Bartender for private parties and weddings

Serve cocktails and drinks at parties, weddings and birthdays, using your own kit and skills.

  • £300-1.5k
  • Side hustle
  • Out and about
27,708 UK companies in this field, 40% registered in the last 2 years
Guide leading a small group of hikers along a mountain trail with map in hand.

Local guided day walks

Lead small groups on guided day walks through the hills and countryside you know best.

  • £300-1.5k
  • Side hustle
  • Out and about
2,793 UK companies in this field, 37% registered in the last 2 years

Multi-day guided walking holidays

Plan and lead walking trips over several days, with routes, stays and luggage sorted for guests.

  • £1k-5k
  • Part-time
  • Out and about
2,793 UK companies in this field, 37% registered in the last 2 years
Bright furnished holiday apartment living room with sofa and sea view window.

Managing holiday flats for owners

Run several holiday flats for owners, handling guests, cleaning and bookings for a share of the income.

  • £500-3k
  • Part-time
  • Out and about
15,500 UK companies in this field, 34% registered in the last 2 years
Private holiday villa with swimming pool and terrace overlooking the countryside.

Short-stay let of an annexe or spare home

Let a self-contained annexe, cabin or spare property to holidaymakers when it would otherwise sit empty.

  • £1k-5k
  • Side hustle
  • From home
15,500 UK companies in this field, 34% registered in the last 2 years
Visitors touring a working farm while a farmer shows them the animals.

Farm tours and visit days

Show visitors your working farm on guided tours, with animal feeding and a cuppa.

  • £500-2.5k
  • Side hustle
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years
A travel agent helping a customer book a cruise holiday at a desk.

Home-based cruise travel adviser

Help friends, family and local people choose and book cruises from home, earning commission from the cruise lines.

  • £200-2k
  • Side hustle
  • From home
15,731 UK companies in this field, 37% registered in the last 2 years
Cosy holiday cottage in countryside with an agent's sign and welcoming garden.

Local holiday cottage letting agent

Market and manage holiday cottages and cabins for local owners, and earn commission on each booking.

  • £500-3.5k
  • Side hustle
  • From home
126,025 UK companies in this field, 24% registered in the last 2 years
Bright furnished flat living room with sofa, table and kitchen corner.

Serviced accommodation manager for owners

Run furnished short-stay lets for owners who want guests and bookings handled for them, and earn a share of the rent.

  • £300-2k
  • Side hustle
  • From home
13,221 UK companies in this field, 18% registered in the last 2 years
Self-catering wooden chalet holiday let surrounded by trees with a welcoming porch.

Holiday let in your spare room or annexe

Let a spare room, annexe or garden room to short-stay guests and keep your start-up costs low.

  • £1k-5k
  • Side hustle
  • From home
15,500 UK companies in this field, 34% registered in the last 2 years
Tour guide leading a group of tourists past famous landmarks.

Guided walking tours for visitors

Lead small groups on themed walks of your town or city, sold online and through booking platforms.

  • £200-1.5k
  • Side hustle
  • Out and about
7,667 UK companies in this field, 33% registered in the last 2 years

Home-based rail travel adviser

Plan and book rail journeys for people who find fares and routes confusing, working by phone and online.

  • £200-1.5k
  • Side hustle
  • From home
15,731 UK companies in this field, 37% registered in the last 2 years

Spare rooms for lodgers or guests

Rent a spare room in your home to a lodger, worker or traveller by the night, week or month.

  • £300-1.5k
  • Side hustle
  • From home
13,221 UK companies in this field, 18% registered in the last 2 years

Online disposable tableware shop

Sell cups, plates, cutlery and takeaway packaging online to cafes, caterers and event organisers.

  • £1k-5k
  • Side hustle
  • Online
6,931 UK companies in this field, 40% registered in the last 2 years

Local holiday let manager

Look after a few local holiday homes for owners: bookings, guests and turnovers, for a commission.

  • £300-2.5k
  • Side hustle
  • From home
126,025 UK companies in this field, 24% registered in the last 2 years

Holiday let and short-stay manager

Look after second homes and holiday lets for owners: bookings, guest messages, cleaning changeovers and keys.

  • £500-3.5k
  • Part-time
  • From home
126,025 UK companies in this field, 24% registered in the last 2 years

About these ideas

Some are service-led, such as managing holiday flats for owners or working as a home-based cruise travel adviser. Others are more hands-on, like a pop-up afternoon tea room or local day tours for visitors. Before you choose, think about your local demand, how much time you can give at evenings and weekends, and whether you already have the skills or contacts to get started. It also helps to check what permissions, insurance or food hygiene steps might apply to the idea you like, as these can affect your real costs.

More ideas

Questions

What should I check before starting a hospitality business on a small budget?

Start by checking local demand, your likely running costs and whether you will need insurance, licences or registrations. Requirements vary by idea and by council area, so ask your local authority and an insurer before you spend money.

Do I need permission to run a holiday let or food-based pop-up in the UK?

It may depend on the activity and location. For holiday lets, check planning rules, your lease or mortgage terms and insurance. For food, check food business registration and hygiene requirements with your local council.

Can I start a hospitality business alongside a job?

Often yes, particularly with flexible ideas such as travel advising, pop-up events or managing short-stay properties. Check your employment contract for restrictions, think about when customers expect you to be available, and plan your time realistically.