Starting an online business can feel intimidating, especially if you’re nearing retirement age and the digital world feels like unfamiliar territory. When I first considered launching my online business, I was completely overwhelmed.
Like many of you reading this, I was in my fifties, working full-time, and dreaming of building something that could support me in retirement. But every time I opened my laptop, I was bombarded with adverts from slick-looking twenty-somethings promising I could make “six figures in 90 days” with their £2,000 course.
I remember sitting at my kitchen table one Sunday afternoon, calculator in hand, trying to work out if I could afford to take the plunge. My biggest fear? That I’d waste precious savings on a business that wouldn’t work. That fear might feel familiar to you too.
What Exactly Is the Cost to Start an Online Business?
When I first toyed with the idea of starting an online business, the fear of the unknown—and the potential cost—was pretty overwhelming. You’ve probably wondered the same things I did:
- Will it cost thousands of pounds?
- Am I risking my savings?
- Is success even possible on a tight budget?
Let me reassure you right away: starting online is often cheaper than you think. But the key is knowing what’s essential and what’s simply fluff.
The real cost to start an online business depends entirely on what type of online business you’re launching. You can find more ideas on home based side hustles, here. Let’s break down the options:
1. Service-Based Businesses (Lowest Entry Cost)
If you’re planning to offer services like virtual assistance, copywriting, bookkeeping, or consulting based on your career expertise, you’ll need:
- A decent computer (which you likely already own): £0 additional cost.
- Reliable internet connection: About £30 monthly (which you’re probably already paying).
- Professional email address: Can be free with Gmail or about £5/month with Google Workspace.
- Simple website: £70-£100 per year (more on this below).
My experience: I started offering social media management services based on skills I’d developed in my corporate role. My total startup cost was just £85 for a basic website, and I landed my first client within three weeks!
2. Digital Products (Medium Entry Cost)
If you’re planning to create and sell e-books, online courses, or templates:
- Content creation tools: Often free (Google Docs, Canva free tier) or £10-£20/month.
- Course platform: £0 (if using YouTube) to £29/month (for platforms like Teachable).
- Basic marketing tools: £0-£15/month.
3. Physical Products (Higher Entry Cost)
If you’re keen on selling physical items:
- Dropshipping route: £20-£40/month for platform fees (much lower risk).
- Traditional inventory: Varies widely depending on your product (higher risk).
Real-Life Case Studies
Let’s look at real-life examples to inspire your own path:
Case Study #1: Freelance Writing (Minimal Cost)
- Initial Costs: £50 (writing course), laptop (already owned)
- Monthly Expenses: Internet (£25), editing software (£15)
- Outcome: Secured first clients quickly, recouped initial costs within one month
Case Study #2: Digital Products (Moderate Cost)
- Initial Costs: Canva Pro (£10/month), Teachable platform (£25/month)
- Outcome: Sold £200 worth of courses in the first month, profitably scaling from there
Case Study #3: Dropshipping (Higher but Manageable Cost)
- Initial Costs: Shopify subscription (£30/month), advertising budget (£100)
- Outcome: Generated sales of £500+ in the first month, profits reinvested to grow further
Website Costs: The Bare Essentials
Every online business needs a home base—your website. If you want to be online, this is an essential cost to start an online business. And you need to pay it all the time you have the business. Here’s what you’ll actually need:
- Domain name: £10-£15 per year
- Web hosting: £40-£60 per year for basic hosting
- Website builder: Free with WordPress.org (though there’s a learning curve) or £10-£15/month for user-friendly options like Wix
When my colleague Janet launched her retirement coaching business, she was initially quoted £2,500 for a website by an agency! She instead opted for a simple WordPress site that cost her £75 for the year, and it’s been perfectly adequate for getting clients.
The Hidden Cost Nobody Talks About: Time
While money is one consideration, time is another vital resource—especially when you’re still working full-time. However, when you start out you probably do have more time than money. Just bear in mind there is normally a big learning curve so it’s normal to feel that you are spending a lot of time but making no money.
I found that dedicating just 5-7 hours per week was enough to get my business off the ground. I’d wake up an hour earlier three days a week and dedicate Sunday afternoons to building my business. The key is consistency, not marathon sessions that leave you exhausted.
Avoiding the “Guru” Money Traps
One rainy weekend, I nearly signed up for a £1,997 “Online Business Masterclass” that promised to fast-track my success. Thankfully, I paused before entering my credit card details. Instead, I found free YouTube tutorials teaching the exact same concepts.
There are also official Government sites that can give you information about starting a business, so they can be a good starting point.
Here’s how to avoid costly mistakes:
- Be extremely wary of anyone promising quick riches or “passive income” with minimal effort.
- Look for genuine testimonials and case studies—preferably from people like you, not 25-year-old social media stars.
- Start with free or low-cost resources (YouTube videos, library books, free webinars) before investing in premium courses.
- Trust your instincts—if something feels off, it probably is.
Real Life Success Story: Margaret’s Craft Business
Margaret (62) was worried her pension wouldn’t be enough for the retirement she wanted. With a passion for knitting and crochet, she started selling patterns online:
- Initial investment: £65 (domain, hosting, pattern-making software)
- Time invested: 8 hours per week
- First month sales: £23
- Six months later: £650/month in passive income
Margaret isn’t tech-savvy—she still prints her emails to read them!—but she followed a step-by-step approach and now has income that will continue well into her retirement.
Your Budget-Friendly Action Plan
Ready to get started without breaking the bank? Here’s what I recommend:
- Identify your skills and interests that could become a viable business.
- Set a firm budget of no more than £200 to get started.
- Secure your domain name and basic website (£70-£100/year total).
- Create a simple business plan outlining your services/products and pricing.
- Establish a consistent time schedule you can realistically maintain.
- Launch before you feel ready—perfectionism is the enemy of progress!
Final Thoughts and Encouragement
Starting your online business doesn’t have to be complicated or expensive. It’s about making sensible choices, avoiding unnecessary costs, and believing in yourself enough to start.
As someone who’s been in your shoes, trust me: the hardest part is actually just starting.
What Are Your Biggest Concerns About the Cost to Start an Online Business?
I’d love to know: What’s holding you back from starting your online business? Is it the cost, the tech learning curve, or something else entirely? Drop a comment below and I promise to respond with practical advice tailored to your situation. Your question might even inspire my next article!
Remember, it’s never too late to start something new, and you don’t need a huge budget—just a willingness to learn and take that first small step.
What financial concerns are holding you back from launching your online side hustle? I’d love to hear your thoughts in the comments below.