blend of startup ingredients ,an innovative idea, first need, industry knowledge and enough knowledge to take first step. Or we can say the typical combination of all the marketing and practically required skills.
Here comes the 5 valuable tips before making a startup:
1. Before thinking of profit, make your knowledge “Financially Profitable”. No startup can make profit from the day one but the financial richness can prepare the launchpad for the profitable journey. Gather the information related to the finance of your business and start making projections accordingly. This will help you in setting target and divide them into parts to meet. Browse internet, read books, talk to seniors and mentors. Make all this your habit and part of your routine life. Books life, “Rich Dad Poor Dad” in recommended.
2. Get friendly with the basic finance terms, assets, liabilities and cash flow. Prepare your own finance library and dictionary of your startup. Understand and define Assets and liability in your own business language. Cash flow is the most important in the whole financial learning especially when you have limited fund and yet to manage daily company expenses. In practical all the systems make you feel like “I can’t expand it” but your financial knowledge make you confident about ” How can I afford it”.
Key behind being a successful entrepreneur is ” learn to acquire assets”.
3. Search for the best Attorney and Chartered Accountant. Always remember “It takes money to make money”, hire the best chartered accountant. This is like ordering sizzler while begging for Chapatis but remember a chartered accountant will only ask for money only when he will make you earn real money. In reward he will make all the necessary arrangements for the company’s legalities, formalities, valuations and most importantly arrangement of investors for your startup. He is the person who can actually make your startup funded after you.
4. Learn to manage your books of accounts and understanding of taxation. Taxation, tax, accounts these are the most hard and irritating words to be understood by a person from different field. But ignoring these words will take you to the unrecoverable value of loss. These are hard but yet very important to consider and learn the practical application in respect of your startup. The game of taxation can make you earn profit or vault into losses.
5. Gather all the fund related information and act accordingly. Once we made startup,come to realize the need of fund management. The common problem an entrepreneur faces is about the banks policies related to startup financing
After one or two month running a startup when we approach banks for further expansion plans then we encounter surprises one by one. Make yourself full of knowledge related to bank policies so that you can approach bank with full preparation and maximum chances of getting financed.
Whatever I shared, are not the words of any financially expert chartered attorney but are the words of real time entrepreneur. Everything mentioned above is the real learning and experiences while running a 6 months old startup. and the absence of financial knowledge cost a lot to me and my startup. So, sharing wisdom can make some other startup to make firm start.
Source :- Post by Aditi Chaurasia on startupsfinance