How to start a low-cost business in 2026

The cost of starting a business should never be your barrier to entry.

I used to think you needed significant capital to start a new business, needing a proper office, a full suite of software tools, an elaborate website, maybe even some inventory or a physical presence to be taken seriously. That’s how I started mine 5 years back. But once I realised that it didn’t matter how my business looked like on the outside (aka. branding, office, team), but it’s actually the inside that mattered (aka. cash flow, delivery).

I have a lot of friends and acquaintances who often ask me tips on starting a business. Most of them want tips on marketing and branding, but they’re surprised to hear that I often give tips on how to start a low-cost business. The reason is that I learned that the most successful founders don't start with a lot of capital, but instead they start with creativity, resourcefulness, and a willingness to test their ideas before they invest heavily.

Here are the top 9 tips I often give in starting a low-cost business:

Focus on service, not inventory

This is the single most important decision you'll make when starting lean.

TIP 1: Sell your skill first.

Services have the lowest startup cost because your primary investment is your time and expertise, not physical stock or inventory. Think consulting, coaching, freelance writing, graphic design, virtual assistant services, or any specialised knowledge you already possess. You don't need a warehouse, suppliers, or shipping logistics. You need a laptop and the ability to deliver value.

When I launched my 2 new ventures this year, I didn't invest in inventory or fancy equipment. I sold what I knew: strategy (through my consulting) and execution (through my talent agency, Purple Ant Media. My overhead was minimal because I designed my services as products.

TIP 2: Leverage digital products when you're ready to scale.

Once you've validated your expertise through services, consider creating digital goods like e-books, online courses, templates, or software. The beauty of digital products is this: you develop them once and sell them infinitely with near-zero production costs. There's no inventory to manage, no shipping to coordinate, and no physical storage required.

But here's my tip: don't start there. You might see some advertisements online that say you can sell a $50 product to 1,000 customers and then you can “easily” earn $50,000. But that’s complete BS and that will require a big audience to get numbers like that. So my advice is to start with services to validate demand and generate cash flow, then build digital products based on what you've learned.

TIP 3: Avoid high overhead at all costs.

Stay remote or work from home. Skip expensive office leases, warehousing, or retail space in the beginning. I know it's tempting to think a professional office makes you look more legitimate, but your clients care about results, not your address. The moment you lock yourself into fixed costs like rent, you've added pressure that makes it harder to experiment, pivot, and stay lean.

Speaking of high overhead, again, please don’t hire anyone full-time just yet. In my previous article How to delegate effectively: 6 proven strategies from building a $6-figure agency, I shared how I hired everyone full-time right away and my expenses ballooned, so don’t make the same mistake, and start by only hiring part-time/ project-based specialists or VAs in the beginning.

Validate before you build

This is where most founders get it backwards. They spend months (sometimes years) building something they think the market wants, only to discover that no one is willing to pay for it. They confuse their vision with market demand, and they burn through time, money, and energy on something that was never validated.

TIP 4: Solve a specific problem, not a vague pain point.

Don't start with a solution in search of a problem. Start with a problem you've identified in a specific market niche, and build only what solves that pain point. The more specific you are, the easier it is to validate, market, and sell.

Bad example: "I want to help people be more productive." vs Good example: "I help freelance designers manage their client communication and project timelines so they stop missing deadlines."

See the difference? The second version is specific, targeted, and immediately communicates value to a defined audience.

TIP 5: Test with a Minimal Viable Offer (MVO).

Don't build a full product. Don't create an entire course, design a complete software platform, or develop a six-month service package. Instead, pre-sell a simplified version of your service or product to see if people will actually pay for it.

This is something I learned the hard way. In my early days, I built elaborate service packages before I had a single paying client. I was so focused on perfecting the offering that I forgot the most essential step: validating that anyone wanted it.

A tip I have here is to first create a simple landing page describing the offer, reach out to potential clients, and see if they'll pay before I build the full offer. If they say yes, then continue designing the offer and deliver. If they say no, then you haven't wasted months building something nobody wants.

TIP 6: Utilise free tools as long as possible.

Don't pay for premium software yet. Use free versions of tools like Google Workspace, basic website builders like Notion, and social media platforms for marketing. The goal isn't to have the best tools; it's to validate your business model with the lowest possible investment. Once you're generating consistent revenue, then you can upgrade. But in the beginning, free tools are more than enough.

Market for free (or very low cost)

You might be surprised to hear this from a marketer, but paid ads are expensive, and they're a gamble when you're just starting out. You don't have the data, experience, or budget to make paid advertising work efficiently from the start.

So what do you do instead?

TIP 7: Network relentlessly.

Your first customers will almost always come from your existing professional and personal network. Please don’t be salesy or spammy; instead, build genuine conversations, ask for referrals, offer initial services at a discount in exchange for testimonials, and focus on word-of-mouth growth.

When I started my agency, I didn't run a single ad. I reached out to people I already knew, I asked for introductions, and I delivered exceptional work that made people want to refer me. That early momentum came entirely from relationships, not marketing budgets.

TIP 8: Content is your currency.

Use platforms like LinkedIn, Instagram, or a free blog like Substack to consistently provide valuable, niche content. This establishes authority and drives organic traffic without paying for ads.

The main tip here is that your content needs to be useful, not promotional. Don't just talk about your services - share insights, lessons, frameworks, and stories that actually help your audience solve problems. When you do this consistently, you build trust and credibility, and people will naturally want to work with you.

This article you're reading right now is an example of that strategy in action. I'm not selling to you; I'm sharing what I've learned. And if it resonates, you'll (maybe, hopefully) remember me when you need the kind of help I provide.

TIP 9: Create a simple online hub.

You don't need a custom-coded website nor an elaborate branding or a complex funnel. Use a single landing page or a simple profile on a platform like Notion, Linktree, or even a well-optimized LinkedIn profile to capture leads and direct people to your offer.

Your goal in the beginning isn't to impress people with your design. It's to clearly communicate what you do, who you help, and how they can work with you. Keep it simple, keep it clear, and focus on conversion over aesthetics.

The bigger picture

Launching lean is all about building a business model that's flexible, resilient, and focused on real market demand rather than assumptions.

When you start with services, validate before you build, and market through relationships and content, you're building something sustainable. You're learning what works before you invest heavily, you're generating revenue while you're still figuring things out, and you're creating a foundation that can scale when you're ready.

The cost of starting a business should never be your barrier to entry. The most successful founders leverage creativity and digital tools to minimise their initial investment.

So if you've been waiting for the right moment, the proper budget, or the right conditions to start, this is your sign: you don't need them. You need to start lean, test fast, and build based on what you learn.

Ready to start building your lean business?

If you're thinking about launching but aren't sure where to begin, I'm opening a limited number of free strategy calls where we'll:

• map out your 90-day roadmap to launch your service-based business

• identify your minimal viable offer, your first marketing channels

• and the exact tools you need (and don't need) to get started

Spots are limited to maintain quality. Fill out this form to book your strategy call.