Entrepreneur Hilary Devey famously kept her personal spending to a minimum in her first years in business. She paid herself just enough to cover food and rent, drove down every cost and even refilled printer ink cartridges by hand. While you do not need to go that far, the principle is sound: frugal habits free up cash to reinvest in growth.
Whether you are building a freelance income or scaling a company, cutting unnecessary costs is one of the fastest ways to improve cash flow. Here are ten practical, UK-focused ways to keep more of the money you earn.
1. Audit your household expenses
In the early days, many founders reduce the amount they draw from the business to the bare minimum. Start with an honest review of your personal spending: subscriptions, groceries, utilities, insurance and transport. A simple budget will often reveal forgotten direct debits and duplicate services. The government-backed MoneyHelper service offers free budgeting tools that can help you see exactly where your money goes.
When I started my business in 2012, a ruthless household audit saved around £6,000 a year. The same approach still works today, especially with so many monthly subscriptions competing for our cash.
2. Use comparison sites for insurance and utilities
Loyalty rarely pays. Home, car and business insurance premiums often rise at renewal, so compare prices before you auto-renew. Independent, FCA-regulated comparison sites can save most households several hundred pounds a year. Set a calendar reminder a few weeks before each renewal date so you have time to switch without pressure.
3. Cut energy and broadband bills
Energy and broadband remain two of the easiest areas to trim. Check your tariff against the Ofgem price cap and other available deals, and take meter readings regularly so you only pay for what you use. Even simple changes—turning down the thermostat, draught-proofing windows or switching to LED bulbs—can lower usage. For broadband, check your actual speed against what you pay for; a cheaper package may be perfectly adequate for a home office.
4. Run a leaner vehicle
If you use a car for business, fuel and vehicle tax are significant costs. A more efficient model can cut fuel bills and reduce vehicle excise duty. Electric and low-emission cars also benefit from lower company car tax rates and, in some cases, grants or congestion-charge exemptions. If a young driver uses the vehicle, a telematics (“black box”) insurance policy can bring premiums down. Remember to claim HMRC’s approved mileage rates—currently 45p per mile for the first 10,000 business miles in a car or van.
5. Build a website on a budget
A professional web presence does not require a large upfront investment. Free or low-cost website builders offer templates designed for small businesses, while self-hosted WordPress gives flexibility at the price of a domain name and basic hosting. Start with a clean, mobile-friendly template and only add paid features when you genuinely need them. A .co.uk or .com domain typically costs £10–£15 a year, and good hosting can be found for less than the price of a monthly coffee.
6. Rethink printing costs
Inkjet cartridges can be eye-wateringly expensive. If you print regularly, a basic laser printer usually costs far less per page and lasts longer before refills. Alternatively, look for high-yield compatible or remanufactured cartridges from reputable suppliers, or use a local refill service. Before you print anything, ask whether a digital copy will do.
7. Travel smarter
Rail fares in the UK are among the highest in Europe, but there are ways to cut them. Book advance tickets, travel off-peak and consider a railcard if you qualify. For longer journeys, coaches can be a fraction of the price of peak-time trains and many offer Wi-Fi and power sockets. If your diary is flexible, shifting a meeting by an hour or two can slash the fare.
8. Keep phone costs down
A traditional landline is often an unnecessary expense for freelancers and micro-businesses. A dedicated business mobile number keeps you reachable wherever you work, while VoIP services give you a landline-style number over the internet for a low monthly fee. If you already have a reliable broadband connection, VoIP can include free or cheap calls and scales easily as you grow.
9. Avoid high currency-exchange fees
If you invoice or pay suppliers overseas, bank exchange rates and fees can eat into your margins. Banks typically add a markup to the exchange rate plus transfer charges, which can cost far more than the headline fee suggests. Use an FCA-authorised money transfer specialist, compare the total cost against the mid-market rate and watch out for recipient charges. For regular international payments, fixing part of the rate with a forward contract can protect you from currency swings.
10. Outsource selectively
Doing everything yourself is not always the cheapest option. If admin, bookkeeping or social media is taking time away from fee-earning work, outsourcing can pay for itself quickly. Start with word-of-mouth recommendations from your network, then use reputable freelance platforms for one-off projects. Be clear about deliverables, agree a fixed price or hourly cap and check the freelancer’s status for tax and IR35 purposes if they work regularly for you.
Most new businesses can find savings in at least a few of these areas. The key is to review costs regularly rather than once a year: small leaks sink ships, and the money you save is money you can reinvest in building the business you want.
What cost-cutting tips have worked for you? Share them in the comments below.
