He took a job with R. Willey & Company in Ludgate Hill, and then Morrison & Dillon's to learn all aspects of the trade. Whiteley lived frugally. Not smoking or drinking he was able to save up £700, enough to start his own business. London was expanding rapidly in the 1860s and after considering Islington he turned his attention to Bayswater; the area was rapidly being developed into a high class residential district. He observed the number of fashionable people using Westbourne Grove and decided to open his shop there. He started his business in 1863 by opening a Fancy Goods shop at 31 Westbourne Grove, employing two girls to serve and a boy to run errands. Later one of the girls, Harriet Sarah Hall, became his wife.
Seizing every opportunity, he acquired a row of shops in Westbourne Grove in 1867 and turned them into 17 departments. Dressmaking was started in 1868, and a house agency and refreshment room, the first ventures outside drapery, opened in 1872. By then 622 people were employed on the premises and a further 1,000 outside. Whitley started selling food in 1875, and a building and decorating department was added in 1876. This proved to be particularly profitable, as the large stuccoed houses in the area needed regular repainting. Claiming that he could provide anything from a pin to an elephant, William Whiteley dubbed himself "The Universal Provider".
He met strong opposition from smaller tradesmen, and also from the local authorities over his grand building plans, and several bad fires in the 1880s may have been caused by opponents. Business nonetheless prospered, aided by a delivery service extending up to 25 miles (40 km), and in 1887 the store was described as 'an immense symposium of the arts and industries of the nation and of the world'.
By 1890 over 6,000 staff were employed in the business, most of them living in company-owned male and female dormitories, having to obey 176 rules and working 7 am to 11 pm, six days a week. Whiteley also bought massive farmlands and erected food-processing factories to provide produce for the store and for staff catering. In 1896 he earned an unsolicited Royal Warrant from Queen Victoria - an unprecedented achievement.
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