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Tersebox | Millennial's Corner | STAND. START. WIN.

Tersebox | Millennial's Corner | STAND. START. WIN.

5 Financial Tips for Entrepreneurs Launching a Startup

5-financial-tips-for-entrepreneurs-launching-a-startup
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STARTUP

5 Financial Tips for Entrepreneurs Launching a Startup

I am not drafting this article as financial expert or consultant. I am drafting this article on the basis of knowledge that I have gained by running two startups simultaneously, one of which is Tersebox. And if you are looking to start something of your own then my best wishes and high regards for choosing less traveled roads. And also my few advices with financial perspective that you should keep in mind while starting your entrepreneurial journey.

Budget: Try to identity all the required head and prepare as precise budget as you can and once it is in place try to stick to the prepared budget. Budgeting is not limited to startup perspective is should also include personal expenditure. In professional space you might have calculated product development cost, marketing cost, staffing cost and other required costs. I would advice to prepare two budgets one for the startup and other focusing on personal expenditure with forecast of six months. Because it does not matter whether you are giving 100% of the efforts or 60% until and unless you have food in your stomach.

Focus on cash inflow: You may be starting your startup in either product or services verticals and doing lots of calculation and budgeting to identify the different cost head and revenue head. My first advice will be to focus on identifying revenue head, which will help you creating in recurring cash inflow to sustain the firm and making it financially viable.

Track your expenses: One mistake I unintentionally did was the overlooking genuineness of expenses. I have set budget of X amount for conveyance for meetings clients but later I released it cut be further cut down by renting monthly scooter. When I say track you expenses it is not limited to tracking whether you are incurring expenses as per the panned manner but also look for the space of cutting down identified expenses through better alternatives.

Create uncertainty category: You might have calculated everything exactly required for running your firm for next one year or whatever the tenure you have thought about. But it does not matter how good you are at calculating, you can never calculate uncertainty. I would advice to create uncertainty cost head and put 5% of the total budget in it.

Minimise Lending: Minimise lending definition is not limited to lending to others but also not receiving money from other until and unless you are sure of returning it. Our human nature of “We will see in future” will create only problems in future because now only medium for your earning is your startup and if sometime went wouth you will be left with huge debt to be repaid.

And last point, which I will recommend personally is to keep in touch your financial expert because they have experience of managing startups. Seek advice and experience from them but it is not necessary to implement their advice. And I want you to identify why? Behind this last piece of advice when you start your startups.

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