The best new business ideas for 2016

Our guide to the best business ideas of 2016 will help unleash your entrepreneurial spirit so you can choose the perfect idea for your new business today.

Coming up with a business idea so you can be your own boss may be a struggle and it's useful to get some advice on business ideas for beginners. The trick is to discover the best new business idea that has the most potential to make money and meet your own goals for setting up a business.

Setting up a business takes time, effort and investment. Building your company around the best business idea will ensure you have a stronger chance of success. Whether you're looking for the best business ideas for beginners, or just want to use them as a starting point for your own thinking, we've gathered together some great new business ideas for 2016, methods to come up with your own and ways to get them started.

How to come up with good business ideas

Chances are you'll need to work through lots of potential business ideas until you find the right one for you. Successful business ideas can strike out of the blue - some of the most successful businesses started with that one eureka moment of inspiration.

However, you can help the process along by brainstorming lots of ideas. Brainstorming helps your creative mind kick into gear. Not only does it help you identify a potential idea, it can start you thinking about how to make a great idea work in practice.

If you need some help thinking outside the box and coming up with good business ideas, TED Talks has a great video on how to think creatively:

Listen to your frustrations - Identify things about business, products and services that bug you, such as the high cost of products. For example, Netflix started as a DVD rental business partly as a response to the late fees imposed on video rentals by Blockbuster, the market leader at the time.
Do it cheaper - Look for products that are expensive and see if technology such as online stores can help lower the price. Glasses Direct offers low-cost spectacles online, saving customers lots of money compared to high-street opticians.
Solve a problem - Many successful businesses start with a problem and come up with a solution that people will pay for. While it might be a lofty goal, Google started small with the mission to organise the world's information.
Do it better - You don't need an original business idea to make a successful business. Rather than trying to think of something unique, look at existing businesses that you like and think how they could work better or differently. Talk to customers to find out what they wish could be improved.
Start small and test - Don't start with a business idea that you think will conquer the world. Instead, start with small ideas and work on them, testing them with potential customers and different iterations until you get it right. Mail order food company Graze sent hundreds of prototype food packages through the post until it achieved the right design.
Play to your strengths - List your skills and passions. What would you work on if you weren't getting paid? Why do people come to you for advice? Starting a business is hard work with little reward in the early stages, so choosing an idea that you're passionate about will help you continue when things get hard.
Do the planning - For each idea you think has potential, put together a rough business plan to check if it's viable. How will it earn money? What are the costs? Who and where are the customers? What specialist skills do you need? It pays to sense check your business ideas before you get too far into launching it.

If you're ready to take the plunge, you'll need to develop lots of ideas. Grab some paper and pens, and jot down as many business ideas as you can think of. To help fuel your thinking, we've pulled together the best business ideas of 2016 that you can start with little investment.

Repair services

Business ideas: car cleaning, mobile car valet, window cleaning, office cleaning, driveway cleaning, deck and garden maintenance, lawnmower servicing.

Business idea: repair services

A low-cost business concept, cleaning services cover a range of areas and extend beyond domestic customers. From car cleaning services - including visiting car valet services - to offering window cleaning to businesses, you can set up a cleaning business for a few thousand pounds. Cleaning can be seasonal as well, so consider patio and drive cleaning services, and businesses such as lawnmower or guttering maintenance in the autumn and spring.

Consulting services

Business ideas: business consultant, marketing consultant, IT consultant, tax and financial planning (specialist licence needed), interior designer, garden designer, wedding planner.

If you've accumulated years of experience in an industry, capitalise on that knowledge and sell on your insights and skills. Consultants typically work with businesses and can charge a high daily rate. Identify businesses that are moving services in-house or look for new or expanding businesses where you can help them grow. Alternatively domestic consulting services such as interior design or garden design are also in high demand.

Crafting and handmade products

Business ideas: jewellery making, storage craft, handmade furniture, decorative items, t-shirt design and printing, knitwear and fashion clothing, photography.

Turning a hobby into a business is a route that can make for a thriving business. It marries a passion for a subject with your creative skills. Initial outlay is low - you'll just need craft materials such as cloth or decorative items - and you can work on creating items in your spare time, testing them on friends and family to get feedback. Websites such as Etsy allow you to sell handcrafted items online and reach millions of potential buyers worldwide.

Personal services

Business ideas: child minding, tutoring, personal shopper, pet minding, dog walking, personal concierge, virtual secretary.

Helping people who are 'time poor' to better manage their lives is ideal if you're highly organised, extremely reliable and good with people. While some business ideas are relatively easy to get started with, such as childminding and tutoring, you'll need to undergo DBS (Disclosure and Barring Service) checks when looking after or working with children and register with your local authority. Other services such as the growing demand by busy executives for personal concierges are good opportunities where you take care of daily activities such as shopping and organising home and social lives for others.

Food and catering

Business ideas: baking, wedding cake making, mobile chef, café, event catering, specialist foods, food blogging.

Business ideas: Food and Catering

If you're good at cooking or baking, consider using those skills to build a food business. From creating and selling food - either specialist foods such as wedding cakes or artisan bread - to catering for events, you can quickly set up a food business. Remember that you'll need to meet food hygiene regulations when selling food for public consumption. A number of businesses that took Start Up Loans have really capitalised on peoples' love of baking.

With the rise in interest in food, other avenues such as running a food blog online where you share your recipes can attract advertising and even be used to sell your own recipe books.

Health and fitness

Business ideas: fitness instructor, personal trainer, food and diet coach, life coach.

Take advantage of the fact that people want to improve themselves. If you're fit and healthy and have a good understanding of health and fitness and how the body works you can consider starting a business as a personal trainer, fitness instructor or diet coach. Start Up Loans backed business FittaMamma chose to support pregnant women with a passion for fitness by providing exercise clothing and health and fitness tips.

Specialist experts such as life coaches are also in demand by businesses to help train executive staff. You will need training and qualifications but being motivational, confident and good with people is a good start.

Online services

Business ideas: web designer, social media services, eBay store, app developer, blogger, online dating services.

Head online to set up a business and you can take advantage of low start up costs and access to a worldwide audience. While you can set up a successful online business selling products you make, import or resell on sites such as eBay, with some training and study you can develop skills such as coding apps for smartphones or designing websites. Alternatively you can mix online with consulting. For example you could help businesses take advantage of social media by building a Facebook, Twitter and YouTube presence.

Learn with Start Up Loans and help get your business off the ground

Thinking of starting a business? Check out our free online courses in partnership with the Open University on being an entrepreneur.

Our free Learn with Start Up Loans courses include:

Plus free courses on climate and sustainability, teamwork, entrepreneurship, mental health and wellbeing.

Disclaimer: The Start -Up Loans Company makes reasonable efforts to keep the content of this article up to date, but we do not guarantee or warrant (implied or otherwise) that it is current, accurate or complete. This article is intended for general information purposes only and does not constitute advice of any kind, including legal, financial, tax or other professional advice. You should always seek professional or specialist advice or support before doing anything on the basis of the content of this article.

The Start-Up Loans Company is not liable for any loss or damage (foreseeable or not) that may come from relying on this article, whether as result of our negligence, breach of contract or otherwise. “Loss” includes (but is not limited to) any direct, indirect or consequential loss, loss of income, revenue, benefits, profits, opportunity, anticipated savings, data. We do not exclude liability for any liability which cannot be excluded or limited under English law. Reference to any person, organisation, business or event does not constitute an endorsement or recommendation from The Start-Up Loans Company, its parent company British Business Bank plc, or the UK Government.

Your previously read articles