Custom software studio for small businesses

Build tailored apps, websites with logins and internal tools for local firms that have outgrown spreadsheets.

Developers working together on code at computers in a modern office.
Startup cost£300 to £2.5k
Monthly revenue£800 to £5k
Time needed8+ h/week
First incomeWeeks
  • £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

  1. Pick a niche you understand, such as trades, clinics or hospitality, and list three common problems you could solve with software
  2. Build one small working example and a simple website showing it, with a clear price guide
  3. 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
Ready in about 2 minutes · one-off payment, tax included

See a full sample report

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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