Custom software studio for small businesses
Build tailored apps, websites with logins and internal tools for local firms that have outgrown spreadsheets.
- £300-2.5k
- Side hustle
- From home
Estimates for a small start in the UK, not guarantees.
Official data
118,679 UK companies in this field, 50% registered in the last 2 years
SIC 62012 “Business and domestic software development”. Source: Companies House, November 2026.
What it is
A one-person studio, run from home, that designs, builds and supports bespoke software such as booking systems, customer portals, stock trackers and integrations between tools a business already uses.
Your first three steps
- Pick a niche you understand, such as trades, clinics or hospitality, and list three common problems you could solve with software
- Build one small working example and a simple website showing it, with a clear price guide
- Contact five local businesses or your existing network and offer a free short chat about what slows them down
Who pays
Small and medium-sized local businesses, charities and start-ups that need something specific that off-the-shelf software does not do well.
How it makes money
Fixed-price projects or day rates for building the software, plus a monthly fee for hosting, support and updates.
Skills that help
- Programming in at least one common language
- Explaining technical choices in plain English
- Scoping and pricing projects realistically
- Reliable communication with clients
Watch out for
- Register as a sole trader with HMRC or set up a limited company, and check which suits you
- Professional indemnity insurance is worth checking, as mistakes in software can cost clients money
- Write a clear contract covering scope, ownership of the code and payment terms
- If you handle personal data, check your UK GDPR duties and whether you need to register with the ICO
- Support promises can eat into your time, so set clear limits on what is included
Deep research report · UK
Everything you need to start: custom software for small businesses
Researched with live web search for United Kingdom: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a custom software business?
Startup costs are typically around £300 to £2,500, depending on your computer, software tools, hosting and insurance. Treat this as an estimate, as you can work from home and build up your equipment over time.
How much can a freelance software developer earn?
Monthly revenue is typically around £800 to £5,000, depending on how many projects you take, how you price them and how much support you provide. These are estimates, and you can start at around 8 hours a week.
What rules should I check before building software for clients?
Check whether to register as a sole trader with HMRC or form a limited company, and consider professional indemnity insurance. Write a clear contract covering scope, code ownership and payment terms, and check UK GDPR duties and ICO registration if you handle personal data.
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