In the early stages of Phase, we learned quickly where best to place our money. Here are five practical principles that we uncovered along the way.
Price your time like a cost line
It’s tempting to do everything yourself, but founder-hours aren’t free. Ask: What’s is the opportunity cost of me completing this task? Would my time be better spent raising, selling, or shipping the core product? What will I learn by doing this role myself?
If a task took you 10 hours and a specialist can do it in one, then selectively investing in them will likely save money and speed-up learnings. Outsource non-core work (e.g., bookkeeping), highly specialised work (e.g. video production) and keep your highest-leverage activities (customer discovery, product vision, hiring) in-house.
Start small, test fast, scale what works
Trying to cover all marketing channels simultaneously is expensive and unsustainable in the early days, but relying on only one channel will limit long-term growth. Decide which channels to prioritise, and make small, time-boxed investments across a few channels rather than betting the farm on one.
Run A/B tests with clear success metrics (e.g., cost per qualified lead, trial-to-paid conversion). “Spend money to make money” is true, but the key is structured spend: small bets, fast feedback, and a willingness to call it early if something isn’t working.
Always get multiple quotes
Prices vary wildly in early-stage services. Ask for two to three comparable quotes with identical scopes so you can evaluate like-for-like. This will help you to become even clearer on what exactly you are looking for and whether the investment is necessary.
Request references and examples of actual outcomes. Avoid being wowed by pitch theatre; prioritise providers who will become accountable members of your extended team. The most important point here though – be prepared to not always go with the cheapest option. “You get what you pay for” is often true, and quality over quantity can improve efficiency and outcomes.
Set thresholds and tie spend to outcomes
Budget guardrails save you from emotional or hasty decisions. For example: “No SaaS over £200/month without a written ROI hypothesis.” Pair every pound with a measurable outcome – whether that’s a cost-per-lead target, an improved conversion rate, or a timeline reduction.
If a spend doesn’t move a metric you care about, it’s overhead. Guardrails keep you consistent; KPIs keep you honest. Use a regular founders meeting to review investments and to clarify if they have delivered as expected. Cut what isn’t delivering, and double down where you see traction. Treat your budget as a living strategy, not a static document.
Spend where it truly counts: finance and legal
The temptation to cut corners here is strong, but mistakes in bookkeeping, compliance, or contracts usually cost far more to fix later. Invest early in clean financial hygiene (runway tracking, cashflow forecasting) and basic legal foundations (IP assignment, contractor agreements, data privacy). These aren’t glamorous, but they de-risk your entire operation and will set you up for the growth of your business.
