Hospitality business ideas you can start for up to £20,000

34 ideas

Hospitality doesn't always mean buying a restaurant lease. These 34 ideas keep startup costs to £20,000 or less, often by using a space you already have, renting rather than buying, or trading in short bursts.

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1k to 5kOver 20kFrom homeOut and aboutOwn premises
Bright self-catering holiday cottage living room with a no-smoking sign.

Non-smoking holiday let in your annexe

Let a self-contained annexe, cabin or garden room to guests on a no-smoking basis, charged per night.

  • £1.5k-7.5k
  • Side hustle
  • From home
15,500 UK companies in this field, 34% registered in the last 2 years
Tour guide leading a small group of travellers through a historic city street.

Specialist group trips sold online

Plan themed group trips such as walking or food breaks, and sell places through your own website.

  • £1k-8k
  • Side hustle
  • Online
7,667 UK companies in this field, 33% registered in the last 2 years
Tents, caravans and motorhomes on pitches at a busy countryside campsite.

Small field campsite

Open a few tent and campervan pitches on spare land and welcome campers for the summer season.

  • £3k-15k
  • Side hustle
  • Own premises
3,343 UK companies in this field, 17% registered in the last 2 years
Neat hotel bedroom with a made bed and soft window light.

Self-catering holiday let

Furnish an annexe, cabin or small property and let it to guests for short stays.

  • £3k-15k
  • Part-time
  • Own premises
13,221 UK companies in this field, 18% registered in the last 2 years
Bright furnished holiday apartment living room with sofa and sea view window.

Single holiday apartment let

Furnish one flat and rent it to holidaymakers by the night through booking sites.

  • £2k-10k
  • Side hustle
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years
Wooden cabins beside a lake at a fishing camp with anglers casting.

Day-ticket fishing lake with camping pitches

Open a small pond or lake to anglers for day tickets, with a few simple pitches for overnight stays.

  • £3k-15k
  • Side hustle
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years
Motorhomes parked on a campsite with electric hook-up posts.

Small motorhome stopover on your land

Turn a spare field or paddock into a handful of pitches for motorhome owners staying overnight.

  • £1.5k-8k
  • Side hustle
  • Own premises
3,343 UK companies in this field, 17% registered in the last 2 years
Visitors touring a working farm while a farmer shows them the animals.

Farm stay with guest rooms or a hut

Host guests overnight in a spare room or shepherd's hut, with farm tours included.

  • £3k-15k
  • Side hustle
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years
Tents pitched in a green field beside a working farm with grazing animals.

Small farm field campsite

Open a field or two on your farm to tent and campervan guests during the summer months.

  • £3k-15k
  • Side hustle
  • Own premises
3,343 UK companies in this field, 17% registered in the last 2 years
A travel agent helping a customer book a cruise holiday at a desk.

Online cruise agency with your own brand

Run your own cruise brand with a website and email list, booking holidays directly with cruise lines and tour operators.

  • £1.5k-7.5k
  • Part-time
  • Online
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.

Full-service holiday let management

Run a hands-on agency with a small team handling bookings, changeovers and guest care for owners.

  • £3k-15k
  • Full-time
  • Own premises
126,025 UK companies in this field, 24% registered in the last 2 years
Visitors riding horses across open pasture at a rural guest ranch.

Farm stay with guided riding breaks

Offer B&B-style stays and guided hacks to guests using the spare rooms, horses and land you already have.

  • £3k-15k
  • Part-time
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years
Bright furnished flat living room with sofa, table and kitchen corner.

Serviced flat let on a landlord's lease

Lease one furnished flat from a landlord, with written permission, and let it to business travellers and visitors on short stays.

  • £3k-12k
  • Side hustle
  • Own premises
13,221 UK companies in this field, 18% registered in the last 2 years
Tidy furnished apartment bedroom ready for holidaymakers arriving for a short stay.

Holiday let in a flat you already own

Furnish a flat or annex you own and let it to holidaymakers by the night, alongside your day job.

  • £3k-15k
  • Side hustle
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years

Rent-to-rent holiday apartment

Lease an apartment from a landlord who agrees to holiday letting, furnish it and run it for guests without buying property.

  • £4k-18k
  • Part-time
  • Own premises
15,500 UK companies in this field, 34% registered in the last 2 years
Tourists on a boat deck watching a whale surface near the coast.

Wildlife trip seller using a local licensed skipper

Market and sell whale watching trips run on a local licensed boat, without buying a boat yourself.

  • £1.5k-8k
  • Side hustle
  • Out and about
1,078 UK companies in this field, 19% registered in the last 2 years
Modern furnished serviced apartment with bed, desk and city view.

One serviced apartment as a side business

Furnish and run one flat for short stays, with cleaning and check-in handled to a hotel-like standard.

  • £3k-10k
  • Side hustle
  • Own premises
13,221 UK companies in this field, 18% registered in the last 2 years

Pilgrim bunkroom at home

Offer simple, low-cost beds to walkers from a spare room or outbuilding on or near a pilgrim route.

  • £3k-15k
  • Side hustle
  • From home
15,500 UK companies in this field, 34% registered in the last 2 years

Farmhouse bed and breakfast

Turn spare rooms in your farmhouse into a B&B for guests who want a real countryside stay.

  • £3k-15k
  • Side hustle
  • From home
15,500 UK companies in this field, 34% registered in the last 2 years

Local tableware delivery round

Deliver cups, plates and packaging by van to cafes, food traders and event caterers in your area.

  • £2.5k-12k
  • Part-time
  • Out and about
6,931 UK companies in this field, 40% registered in the last 2 years
Diners eating at tables while a live show performs on stage.

Pop-up dinner theatre nights

Stage a ticketed show and set meal in a pub function room or hall, selling combined tickets to the public.

  • £1.5k-6k
  • Side hustle
  • Out and about
Bartender serving colourful tropical cocktails at a themed tiki bar with bamboo décor.

Pop-up tiki bar at venues and events

Run a tropical cocktail bar for a night or a season inside existing venues, markets and private events.

  • £3k-12k
  • Side hustle
  • Out and about
Bartender serving drinks at a nightclub bar with neon lights behind.

Regular club night in a hired venue

Run a monthly or weekly club night in an existing licensed venue, without leasing your own.

  • £1k-6k
  • Side hustle
  • Out and about
A crowd cheers while a singer performs on stage in a karaoke bar.

Pop-up karaoke bar nights

Test the idea by running a karaoke bar night in a hired room or quiet venue before you commit to premises.

  • £2k-8k
  • Side hustle
  • Out and about

About these ideas

Some suit people with land or a spare property, such as a small motorhome stopover or a farm stay with guided riding breaks. Others, like a pop-up wine bar for events or a rent-to-rent holiday apartment, let you test demand before committing much money. Before you choose, think about licensing, insurance, planning rules and how much of your time guests or customers will need. Check seasonality too, because income in hospitality can swing a good deal across the year. Start with the idea that fits your assets, schedule and comfort with people.

More ideas

Questions

Do I need a licence to start a hospitality business in the UK?

Often, yes, but it depends on what you offer. Selling alcohol, serving food, or hosting events may need a premises or personal licence, plus food business registration. Check with your local council before spending money or taking bookings.

Can I run a holiday let or stopover on my own property?

Possibly, but check first. Look at planning permission, mortgage or lease terms, insurance, safety requirements and any local rules on short-term lets or camping use. Your council and your lender or landlord are sensible first contacts.

How can I keep hospitality startup costs low?

Consider pop-up formats, renting rather than buying, and using space you already own. Test demand with a small run of events or bookings first. Also budget for insurance, licensing, equipment and a cash buffer for quiet periods.