As a freelancer who's done his fair share of projects, as well as worked for nigh on 10 years in both the digital agency capacity, and in a web role in other industries, I think a lot of people are missing something here.
There is a difference between a web presence, and a website which actively works to promote your business and products.
Web Presence
The people who are offering 50 quid websites are not going to help promote your business, they are merely giving you 'something' to point your customers at when they come to you from other avenues, such as adverts, meetings etc. Perhaps a brief introduction to your company, a couple of product photos and a contact form (or maybe just an e-mail link). You'll get a theme which vaguely suits your logo (if you have one) and that's it. A stagnant site that sits there like a business card. Nothing wrong with that, but you're not going to get anything else.
Proper Website
A proper website can't be built in a few hours for 50 quid. Sorry, shush - it just can't. Unless you live at home with mummy, or enjoy living in a poverty trap whilst you bleat about more expensive web designers being a waste of money to anyone breeding dust and moths in their purse who will listen.
Aside from anything else, you need to have at least one meeting with the client to discuss the purpose of the website. Presumably, you'll need to spend money getting to said meeting which eats into your 50 quid straight away. You do actually MEET clients, right? To talk about their business needs? Right??
Taking the example earlier in the thread, a guesthouse can be one of two things: a web presence, or a proper website which works to get you business. You'll want photographs, the ability to update with new ones, perhaps a sample menu. You should probably think about setting up some sort of online booking form which ties in with an availability calendar for each of your rooms. Oh yes, sure there are things that can be showhorned into WordPress to do this but dammit, you're going for quality here - if it doesnt match your impeccably presented branding and colours straight off the bat, you're going to have to spend time editing the stylesheets, making sure the sizing is nice - making it set the tone of the establishment.... you get the idea. Then you have SEO to target your market, analysis of competitors etc etc.
The point is, none of this can be done properly for 50 quid. You need to invest money and to be honest, where's the harm in that? Which guesthouse would you choose to stay at if faced with their websites side by side - the one with the crappy WordPress site that looked like it was pieced together by several morons between X-Box live games, or one that had obviously had time and money invested in it, like any healthy business should?
You wouldn't open a nice italian restaurant, and stick flourescent, handwritten special offer notices in the window would you? No, you'd spend some cash and get some nicely printed ones, or spend some money on a signwriter to give you a nice pleasant in-fitting chalkboard. Although if your italian restaurant is called "Mario's Greasy Spag Bol Salmonella Specials" you may not. It's all about your target market.
You get it, right? By all means - spend £50 - £200 on a new web presence. When you're ready to have it work for you and your business, open your wallet and invest in your future.