Choosing Which UK City To Start Your First Business

27 May 2026

Toby Patrick

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When it comes to the UK economy at the moment, a lot of prospective owners are probably of the mind that it's not the best time to start a new business. But this isn’t the case across the board. Numerous industries are either experiencing steady, consistent growth or are thriving on the chaos and remaining unfazed, like companies operating within AI and technology spaces.

While the type of industry is no doubt a huge factor that can determine the success of a business, in many cases, a company's location is just as important. Where you choose to settle can be influenced by several factors, from the cost of operations, employee wage expectations, rent, and so much more.

London

The UK’s capital is naturally home to the headquarters of a lot of very successful businesses, but with London’s high business rates, employee wage expectations and rental costs, setting up there can be eye-watering for a small, start-up business.

While some options a bit further out from the city might be more attractive in those aspects, it’s again dependent on the type of business you own. For example, a fashion retailer might thrive in London's city centre, as footfall, tourism, and overall population are higher than in any other major city. That being said, other areas can also be more attractive in terms of costs, such as a shopping centre in Essex and so forth.

It’s also worth noting that in 2023, the average turnover for a small business in London was just over 100,000, with 9% business growth.

Leeds

Known as one of the fastest-growing tech hubs in the North. Within the digital sector alone, there was a 125% growth above the national average, which screams new opportunities to start your own tech business here. Leeds is great for that area of business, but also holds the benefits of competitive business rates, much cheaper rental compared to southern areas, and you have the added advantage of being located in a skilled talent pool of university students, which allows you to build your company, train your business, and also offers affordable wages to begin with as you grow and enter a new market.

Manchester

England's second city and capital of the north is an unsurprisingly hub for a range of industries, with a history of success in the textile industry, but in recent years it has boasted promising opportunities for creative media and fashion, which are both going through periods of consistent growth.

Not to mention that Mancunians love their nightlife, so that would also be a promising opportunity, even if the hospitality industry is struggling by and large, bars in Manchester are having more success, as people there are heading straight to Irish bars for a pint, music and vibes so it’s something to consider for hospitality start-ups.

Fashion, like other cities such as London, is at Manchester’s core, but like other industries, it’s very competitive; that’s why incorporating a creative media element would allow new businesses within this field to thrive there.

Manchester as a whole can be expensive, but there are places where you can find a real bargain for rental units, there are also pretty competitive. It’s also worth considering that in 2023, Manchester's average business turnover was just under £90,000, with 4% growth that year.

Liverpool

Liverpool is another northern powerhouse with potential in a variety of fields and opportunities for professional services, such as tech and cybersecurity. Though it’s still a major UK city, its economy is slightly smaller than that of Manchester, while still growing consistently, but, on the bright side, operating costs are also generally lower.

There is an art to getting your foot in the door without being bled out in the first year on business rates and rent, so Liverpool is a great place to consider starting up. It might be an easier environment in which you can build your reputation, customer base, and make a name for yourself before expanding into other major cities.

Final Thoughts

When it comes to picking which city to start your start up it’s completely dependant on what industry you want to emerge into, what you can afford in terms of business rates, wage expectations and rent prices, as while you might not turn a profit in your first year or two, you don’t want to dig yourself into a hole that will burnout your business before you’ve even started.

The vast majority of cities tend to be tech and financial hubs, which just comes with the modern-day expectations and overall growth, but there are so many other industries that are also growing to consider, and choosing something you are passionate about can make individuals, whether it’s B2B or B2C, seem so much more inviting and interested in it compared to others.

Make sure you do your research in terms of growth within that industry in various locations over the last 5 to 10 years before setting up shop anywhere, as this will give a better insight into potential trends.

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TikTok and Its Impact on Business: A Baffling Success Story

Paul Francis
Nov 8, 2023
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In the ever-evolving landscape of social media platforms, TikTok has emerged as a powerhouse, changing the way we consume content and transforming it into a potent tool for businesses to engage with their audiences. TikTok's success can be attributed to its unique format, and today, we'll explore its journey from inception, its potential impact on businesses, and the challenge it poses to traditional media.

How TikTok Got Started

TikTok, owned by the Chinese company ByteDance, made its international debut in September 2017. However, its origins can be traced back to Douyin, an app launched in China in September 2016. Initially, Douyin was primarily focused on the Chinese market, allowing users to create and share short video clips, typically lasting 15 to 60 seconds. The app swiftly gained popularity within China, garnering millions of users and challenging the dominance of other social media giants like WeChat and Weibo.

In 2018, Douyin was rebranded as "TikTok" for the global audience, marking its expansion onto the international stage. This transition allowed TikTok to adapt to the unique preferences and cultural nuances of users from various regions worldwide, effectively making it a global sensation.

The Vine Connection

For those who remember Vine, an app that allowed users to create and share 6-second video loops, TikTok might seem like a spiritual successor. Vine paved the way for short-form video content and established the groundwork for the success of TikTok. TikTok expanded upon Vine's concept, offering more tools, features, and a user-friendly interface, thus capturing a broader audience.

TikTok's massive popularity is primarily driven by Generation Z and millennials, who embrace its short, engaging videos. The platform's algorithm tailors content to individual preferences, ensuring that users continually discover fresh, captivating content, making it a go-to source of entertainment for these younger demographics. Its intuitive, swipe-driven user interface and vast library of effects and music tracks add to its appeal, making it a highly engaging platform.

The Business Perspective

TikTok has become a powerful marketing tool for businesses. Here's how TikTok is beneficial for companies looking to engage with their audience:

Creativity and Authenticity: TikTok encourages creativity and authenticity. Companies can connect with their audience through genuine, relatable content, often featuring behind-the-scenes glimpses and employee stories. This genuine approach helps build trust and a sense of authenticity that resonates with TikTok's user base.

Trend Capitalization: TikTok trends spread like wildfire, and businesses can jump on these trends to increase their visibility and engagement. By participating in popular challenges or using trending music, brands can create a viral marketing moment, increasing their reach and impact.

Influencer Collaborations: TikTok influencers have massive followings and can effectively promote products and services. Collaborating with influencers can help businesses reach a broader audience and build trust with their target market. The inherent authenticity of TikTok makes influencer endorsements all the more powerful.

For a practical example of TikTok's potential for businesses, while scrolling through TikTok this morning, I stumbled upon a clip from the "Baffled Podcast." The snippet, which talked about the differences between Halloween in England and the US piqued my interest, leading me to seek out the full podcast episodes on Spotify. Intrigued by the content, I even explored the Baffled Podcast's website for merchandise.

This illustrates how TikTok can drive traffic to external platforms, helping businesses expand their reach and potentially boost sales. TikTok's capacity to captivate its users' attention, even for just a minute, and generate interest in products or services is a powerful asset for businesses looking to increase their online presence.

TikTok's journey from its launch to its current status as a dominant force in the social media world is nothing short of remarkable. Its ability to engage younger generations, capitalise on trends, and foster authenticity has made it an invaluable asset for businesses looking to connect with their audience. As TikTok continues to evolve, companies that harness its potential for creativity, engagement, and storytelling will find themselves well-positioned in the competitive world of digital marketing. So, if you're baffled by TikTok's success, perhaps it's time to explore its potential for your own business. With TikTok, businesses have the opportunity to reach an engaged, youthful audience and drive their growth to new heights.