#1 Pre-Startup: It’s the crucial step as you prepare yourself both mentally and financially to begin a new phase of your work which needs a proper planning. You not only have to secure yourself but your family too.
Start by telling them the idea, the preparation and the processes of it. Save everything, spend less or it is wisely enough to have a financial reserve which can help you in your startup and other home expenses. Remember to make a saving which can uphold the expenses equal to 18 months or at least a year. Try and save some capital for your contribution towards your business. This financial planning and money reserve should be done while you are safe still in your job. Plan well, for crucial spending like education and health-care of your family. It is better to know when to call it quits and get back into a job and start building up the money reserve again.
#2 The Startup: Don’t be an excited one and hop on to too many things and start yearning for a profit soon after founding a startup. Instead be calm and follow the steps slowly. Don’t lose your piece of head and be systematic, but avoid paying in a systematic investment plans. This will bring you under lot of pressure if you run short of money. Make a proper salary out of the business and save some and be sure to make it ahead and then indulge in investment plans. The Provident funds are not to be broken unless it’s a real emergency. Liquid funds, cash which are essentials for the pockets to be on a safer side. For an awesome business choose a city you are well-versed with, and which would not eat away your money and is less expensive. The golden mantra is to share. Share your resources and place with other entrepreneurs and you will be delighted to work and see the growth.
#3 Post Funding/Exit: At this phase you have to prove your business’ capacity and your ability. It is all about planning the right way and saving more and more for your future, your family and for your startup too.
Save much before you venture into new ventures. The retirement plan is never to be missed out, it’s essential too. At this juncture of your startup you can prepare yourself for taking up risks in investments and you can revitalize the Systematic Investment Plans, and Sales Incentive Plans.#4 The cash reserve: The Yield: The cash you saved from the beginning will help you cater to many needs in the process of your venture. While you surge ahead with your ideas and startup, the savings will look after your and family’s personal basic needs. The essentials like groceries, food, children’s educational fees, medical emergencies, official travel expenses are should all be covered up; not only are these but your utility payments, health/life insurances, home/EMI rent too should be taken care of . This is possible only on account of in-time savings. For this healthy covering up of your basic needs you need to invest in savings, in a proper planned manner.
#5 Insurance: Insurance not only caters to your needs in the future, but also covers up for your needs financially at a later stage of life. Hence take insurance, especially the health insurances for your parents well in-time. All major insurance companies charge a high premia for people above the age of 65 that is 50,000 for a cover of 2 lakhs. So better take it when they aren’t too old. Take insurance for yourself and make sure to buy insurance for your family too. Keep aside some cash reserve, at least 10-12 lakhs for the benefit of the family and emergencies.
#6 Rent: If you are on the way for a startup, stay away from trying to own a house unless you are secured enough financially. There’s no harm in owning a house unless you are well-acquainted with the money of your own. But the process of it is very rigorous and can harm the way you save and invest for your business and other ventures. EMIs are costly, and will make it more expensive if you have to pay it monthly. If you are thinking that renting the house will cover the EMI cost, then you are not right as this won’t be helping out. The better option is to be secured and stay in a rented house rather than paying the double amount in trying to own up your own house during your startup.
#7 Debt: Debt is the scariest thing to hold. Never hold any, and always refrain from giving any. Before you venture out for new ideas, be free from all debts you hold. For a healthy startup you need to be free from your mind and firm financially, so better pay all your rents on time, clear all your bills including credit cards and loans. And get back the money you lent too. Make sure you increase the limit of your credit card for future benefit and emergency purposes. Make a point to never mortgage your house for raising funds for any purpose and especially the startup, where some extent of risk is involved. Do all this before you leave your job for the startup.
#8 Loan: If you have any loans especially house, try to get rid of it or fix it. If you are planning to move into your own house and the construction is on its way, but will take more than2-3 years, stop it. The selling option is more comfortable rather than wait for the construction to finish. As this will be more tiring and will be taking up your most of the time and finance. If you are already in a house taken up on EMIs try to clear it at the earliest. Or either way you can keep aside a fund made for the EMIs and make it a point not to touch that money. You can bring in your spouse for the help in the payment as she will be there to take care of all the EMI payments. Lastly if the property
No comments:
Post a Comment