Starting a business costs money. There are many things you have to pay for, such as legal documents, building a website, coding, design work, and much more.
So, what can you do to save money during the early days? Below are five useful tips that may seem simple but can really help when you’re launching your business:
- Spend less on legal fees when getting started
- Use free or low-cost tools
- Keep your team small and outsource tasks that are not core to your business
- Look for funding options
- Be careful with how you spend on marketing
Tip #1: Spend less on legal fees when getting started
You might not need to hire a lawyer right away when you start your company. There are affordable online services like SeedLegals that help you handle early legal work. These platforms let you:
- Set up your company
- Write non-disclosure agreements (NDAs)
- Create your company’s ownership structure
- Prepare founder agreements
- Build a financial model
These services usually charge a small monthly fee, instead of thousands of pounds upfront.
Later on, you may need a lawyer for more complex issues. But at the start, these online tools can help you save a lot of money.
Do you need a startup lawyer?
It’s worth knowing when you can manage legal tasks yourself and when it’s time to get help from a lawyer.
Tip #2: Use free or low-cost tools
Before hiring a web developer or a pitch deck designer, try one of the many AI tools that let you do these jobs yourself. These tools help you make professional websites and presentations, and you don’t need to know how to code. This saves you the cost of hiring someone else.
Tip #3: Keep your team small and outsource tasks that are not core to your business
If you’re building an app or a website, try to create an early version yourself before hiring developers. Developers are costly, and the first version of your product often gets changed once real users start testing it.
Instead, try using no-code tools like Figma, Canva, or other design platforms to build basic versions. You can also use new tools like Lovable to make simple prototypes or even basic working apps without writing code or hiring developers.
When you’re ready to build the final version of your app, you’ll need developers. But using tools early on helps you test what works. You can update your design and layout as needed, without having to pay for changes. Once users are happy with your prototype, that’s the right time to invest in building the full version.
Tip #4: Look for funding options
If your business needs money to grow, you’ll either need to pay for it yourself or find others to help fund it. Your options include:
- Using your own money
- Applying for grants
- Getting a bank loan
- Raising money from venture capital (VC) firms
- Getting support from angel investors
Let’s take a quick look at each one.
Using your own money
If possible, start with your own funds. It’s often easier than raising money from others. Data shows that founders usually put in around £25,000 of their own money before seeking outside investment.
Eventually, you might reach a point where your own funds aren’t enough. That’s when you should start looking for other ways to fund your business.
Grants
Grants can be helpful, but they are often slow and hard to get. They usually apply to specific industries or businesses connected to universities. Apply if you qualify, but don’t rely on grants alone.
Venture capital (VC)
VCs often don’t invest in companies that are just starting. If you don’t have paying customers yet, they may tell you to come back later. So, VCs usually become an option after you’ve proven your business can make money.
Bank loans
Banks usually won’t give loans to companies that aren’t making a profit. Without steady income, you won’t be able to repay the loan, and the risk of going bankrupt is high. This is why most early-stage businesses don’t use bank loans.
Angel investors
Angel investors are the most realistic option early on. These are people who invest their own money, often between £500 and £20,000. If you find a few of them, you might be able to raise £50,000 to a few hundred thousand pounds.
While this isn’t exactly saving money, it does help you avoid using up your own savings.
More on raising money:
- How to find startup investors
- How to connect with angel investors
- How to raise pre-seed funding
Tip #5: Be careful with marketing spending
Try not to spend money on Google or Facebook ads too soon. These platforms already earn plenty of money – you don’t want to give them more until you know your business model works.
Let’s say your website is ready, your app is live… but no one is visiting. What can you do?
The easy answer is to buy ads online. But if you don’t know whether people will actually buy your product, you’ll likely waste money getting visitors who leave right away.
Instead, wait until your product has a clear fit with your target market. Once you’ve raised funding and proven that your business can make money, that’s the time to start spending on ads.
Until then, focus on free or low-cost ways to get noticed. These include:
- Writing blog posts and getting them published online
- Posting regularly on LinkedIn
- Improving your website’s search ranking through SEO
- Joining and taking part in online communities where your customers hang out
- Partnering with other businesses to share links and bring in traffic
Don’t spend money on paid ads until you know your product works and your business can support it.
Need more help with your startup?
Starting a business is tough, and knowing where to spend and where to save can make a big difference. Hopefully, these tips have helped you find ways to keep your costs low while still growing your business.
If you’d like more advice from people who’ve done it before, join one of our free events or webinars. You’ll hear from experienced speakers, get helpful tips, and become part of a growing community of founders and investors.
